In this article, we will look at the 14 Best Affordable Stocks to Buy Under $20.
On October 22, Alan Rechtschaffen, UBS Global Wealth senior portfolio manager, appeared on CNBC’s ‘Money Movers’ to talk about the latest trends in the market. He stated that the market being at 6,700 isn’t a coincidence; there is an alignment of productivity and policy at work that he sees continuing.
He added that there are also some tailwinds that could prove helpful, with interest rates coming down. The Fed seems to have pivoted to an understanding that interest rates are going to come down, and according to UBS, this could be a positive development for the market going forward.
READ ALSO: 14 Best Long Term Low Volatility Stocks to Buy Right Now and 11 Best Small Cap Stocks with the Highest Upside.
His outlook for the market suggests that there is a possibility of still-meaningful upside for US stocks, with bullish sentiments for AI, resources, and power.
With these trends in view, let’s look at the best affordable stocks to buy under $20.
Our Methodology
We used Finviz to compile a list of top stocks with a forward P/E below 15 and stock price under $20. We then selected the top 14 with the highest number of hedge fund holders as of Q2 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Note: All data was recorded on October 21.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14 Best Affordable Stocks to Buy Under $20
14. Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA)
Forward P/E: 10.51
Stock Price: $19.56
Number of Hedge Fund Holders: 10
Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is one of the best affordable stocks to buy under $20. On October 21, Morgan Stanley resumed coverage of Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) with an Equal Weight rating and a price target of €19. The firm told investors that it sees limited upside to the consensus earnings estimates.
However, Barclays analyst Cecilia Romero reiterated a Buy rating on the stock on October 19, assigning it a €18 price target. Bloomberg reported on October 20 that the Barclays analyst stated that with Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) moving on from its “failed attempt” to buy Banco Sabadell SA, its Spanish peer, the lender should launch a new buyback plan of around €3.5 billion ($4 billion).
Romero wrote in a note that it is “now time for BBVA to reward shareholders’ patience and support.” The analyst anticipates the program’s announcement with the fiscal Q3 results, set to be reported later this month, and its launch as soon as approval from the European Central Bank is attained.
Banco Bilbao Vizcaya Argentaria, S.A. (NYSE:BBVA) is headquartered in Madrid, Spain, and operates in the traditional banking businesses of asset management, retail banking, private banking, and wholesale banking. Its operations span the United States, Spain, Mexico, Turkey, South America, and the Rest of Eurasia segments.
13. Cemex S.A.B. de C.V. (NYSE:CX)
Forward P/E: 14.07
Stock Price: $9.33
Number of Hedge Fund Holders: 18
Cemex S.A.B. de C.V. (NYSE:CX) is one of the best affordable stocks to buy under $20. Cemex S.A.B. de C.V. (NYSE:CX) was downgraded to Sector Perform from Outperform by Scotiabank on October 20. The firm, however, lifted the price target to $11.10 from $10.90.
The firm told investors that it believes Cemex S.A.B. de C.V.’s (NYSE:CX) shares are due for a “pause” after the year-to-date rally, and that it does not see any short-term catalysts that can support the company in sustaining the recent momentum.
Therefore, Scotiabank reasoned that since major short-term catalysts for Cemex S.A.B. de C.V. (NYSE:CX) are not available, investors should either “get ready for the next spring’s construction cycle” or wait for a price correction.
Cemex S.A.B. de C.V. (NYSE:CX) is a global construction materials company that offers ready-mix concrete, cement, aggregates, and urbanization solutions. Its operations are divided into the following geographical segments: Mexico, United States, Europe, Middle East, Africa and Asia (EMEAA) and South, Central America and the Caribbean (SCA&C).
12. Lloyds Banking Group plc (NYSE:LYG)
Forward P/E: 10.82
Stock Price: $4.44
Number of Hedge Fund Holders: 19
Lloyds Banking Group plc (NYSE:LYG) is one of the best affordable stocks to buy under $20. On October 17, Lloyds Banking Group plc (NYSE:LYG) received a rating update from Morgan Stanley analyst Alvaro Serrano, who reiterated a Buy rating on the stock with a price target of p100.
The rating update supports the analyst’s previous Buy rating on the stock with the same price target released on October 9, supported by factors associated with Lloyds Banking Group plc’s (NYSE:LYG) market positioning and its handling of potential financial uncertainties.
Serrano stated that despite the uncertainties regarding the FCA’s consultation paper on motor finance charges, Lloyds Banking Group plc’s (NYSE:LYG) preparation for potential additional provisions exhibited resilience. The proactive approach reflects a solid risk management strategy by the company that can help deal with future financial impacts.
Lloyds Banking Group plc (NYSE:LYG) operates as a financial services company providing banking and financial services. The company’s operations are divided into the following segments: Retail, Commercial Banking, Insurance and Wealth, and Other.
11. Vodafone Group Public Limited Company (NASDAQ:VOD)
Forward P/E: 13.75
Stock Price: $11.51
Number of Hedge Fund Holders: 20
Vodafone Group Public Limited Company (NASDAQ:VOD) is one of the best affordable stocks to buy under $20. Paul Sidney, Berenberg Bank analyst, reiterated a Hold rating on Vodafone Group Public Limited Company (NASDAQ:VOD) on October 20, setting a price target of £0.82.
In other developments, Vodafone Group Public Limited Company (NASDAQ:VOD) reported on October 16 the successful acquisition of a total of 100 MHz of spectrum in the 5G auction conducted by the Information and Communication Technologies Authority (ICTA), costing $627 million (€539 million) in total.
Management reported that the acquired spectrum comprises “2 x 10 MHz in the 700MHz band and 80 MHz in the 3.5GHz band and will be used by Vodafone Türkiye to drive the country’s digital transformation”.
5G services are anticipated to be launched during 2026, and the spectrum will be available from April 2026. According to Vodafone Group Public Limited Company (NASDAQ:VOD), it has a license duration of almost 17 years, expiring on 31 December 2042.
The company further reported that the payments will be phased over three financial years: the initial instalment of $209 million (€180 million) is due in January 2026, while the two further equal payments of $209 million (€180 million) each are due in December 2026 and May 2027, respectively.
Vodafone Group Public Limited Company (NASDAQ:VOD) is involved in telecommunications services in Europe and internationally, offering mobile services that allow customers to text, call, and more.
10. Venture Global, Inc. (NYSE:VG)
Forward P/E: 8.96
Stock Price: $9.61
Number of Hedge Fund Holders: 22
Venture Global, Inc. (NYSE:VG) is one of the best affordable stocks to buy under $20. On October 17, Scotiabank slashed the firm’s price target on Venture Global, Inc. (NYSE:VG) to $13 from $16 while maintaining a Sector Perform rating on the shares.
The firm told investors that Venture Global, Inc. (NYSE:VG) experienced a “tumultuous 2025 in operations and/or corporate level circumstances.” It added that while some of the effects were not in the company’s control, others were driven by divergence between consensus expectations and business performance.
In other developments, Reuters reported on October 20 that, according to a regulatory filing on Monday, Venture Global, Inc. (NYSE:VG) is seeking permission from federal regulators for the introduction of natural gas into the final block of its Plaquemines LNG plant by Thursday.
If the company attains permission from the Federal Energy Regulatory Commission, it will soon start the production of LNG from its entire Plaquemines plant, more than a year ahead of when it is anticipated to provide its “first set of long-term customers with their contracted amounts of gas”.
It further reported that the completion of the Plaquemines export facility in Louisiana would bring it to its full capacity of 27.2 million metric tons per annum (mtpa).
Venture Global, Inc. (NYSE:VG) is involved in the construction and development of liquefied natural gas production. The company’s projects include Calcasieu, Plaquemines, CP2, CP3, and Delta projects.
9. Stellantis N.V. (NYSE:STLA)
Forward P/E: 12.69
Stock Price: $11.12
Number of Hedge Fund Holders: 28
Stellantis N.V. (NYSE:STLA) is one of the best affordable stocks to buy under $20. Jefferies analyst Philippe Houchois reiterated a Buy rating on Stellantis N.V. (NYSE:STLA) on October 20, setting a €11 price target for the stock.
Separately, Stellantis N.V. (NYSE:STLA) announced on October 14 plans to invest $13 billion over the coming four years to support business growth in the critical US market and expand its domestic manufacturing footprint.
Management stated that the investment marks the largest in the company’s 100-year US history, and is expected to help several aspects for the company, including the introduction of five new vehicles across the brand portfolio in key segments, the “addition of more than 5,000 jobs at plants in Illinois, Ohio, Michigan and Indiana”, and the “production of the all-new four-cylinder engine”.
Stellantis N.V. (NYSE:STLA) also reported that the new investment would further increase the company’s already notable US footprint, expanding the annual finished vehicle production by 50% over current levels.
Stellantis N.V. (NYSE:STLA) designs, manufactures, distributes, and sells vehicles. The company offers products under various brands, including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS, Fiat, Fiat Professional, Jeep, Lancia, Opel, Peugeot, Ram, and Vauxhall.
8. Vale S.A. (NYSE:VALE)
Forward P/E: 6.2
Stock Price: $11.27
Number of Hedge Fund Holders: 32
Vale S.A. (NYSE:VALE) is one of the best affordable stocks to buy under $20. Vale S.A. (NYSE:VALE) reported its production and sales in fiscal Q3 2025 on October 21, announcing that it delivered strong operational performance in the quarter. Production rose to its highest level since 2018 in Iron Ore, along with an improvement in price realization.
Management reported that Salobo drove year-over-year growth in Copper, and polymetallic assets delivered steady performance. In Nickel, ore mined at Sudbury rose by 45% year-over-year, and Onça Puma’s 2nd furnace started operations, potentially leading to growth in production in the coming quarters. According to Vale S.A. (NYSE:VALE), all three businesses are “tracking towards the upper end of the 2025 production guidance ranges”.
Iron ore production in the quarter totaled 94.4 Mt, up 4% year-over-year. The growth was supported by the continued ramp-up of key projects and a new quarterly record at S11D. Iron ore sales also rose 5% year-over-year to 86.0 Mt, while copper production totaled 90.8 kt, 6% higher year-over-year.
Vale S.A. (NYSE:VALE) produces and exports pellets, iron ore, manganese, and iron alloys. Its operations are divided into the Energy Transition Materials, Iron Solutions, and Coal and Others segments.
7. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Forward P/E: 3.93
Stock Price: $11.56
Number of Hedge Fund Holders: 39
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is one of the best affordable stocks to buy under $20. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) reported on October 20 that it received the environmental license from Ibama for the drilling of “an exploratory well in block FZA-M-059, located in deep waters off Amapá, 500 km from the mouth of the Amazon River and 175 km from the coast, on the Brazilian Equatorial Margin”.
Management reported that the drill rig is at the well site already and the drilling process is anticipated to start immediately, with an estimated time frame of five months.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) stated that it aims to gather additional geological data through this exploratory activity to support assessments of whether there is gas and oil in the area at an economic scale, with no oil production at this stage. The company added that it has met all the requirements put forward by Ibama and is completely adhering to the environmental licensing process.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is involved in exploration, production, and distribution activities involving oil and gas. The company’s operations are divided into the following segments: Exploration and Production; Refining, Transportation, and Marketing; and Gas and Low Carbon Energies.
6. KeyCorp (NYSE:KEY)
Forward P/E: 11.91
Stock Price: $17.54
Number of Hedge Fund Holders: 44
KeyCorp (NYSE:KEY) is one of the best affordable stocks to buy under $20. Morgan Stanley analyst Manan Gosalia maintained a Hold rating on KeyCorp (NYSE:KEY) on October 20, setting a $24 price target.
The analyst based the rating on the company’s strategic plans and financial outlook, stating that its return on tangible common equity (ROTCE) and net interest margin (NIM) targets are slightly ambitious in comparison to current estimates.
It added that while KeyCorp (NYSE:KEY) has a goal of a NIM of 3.25% by fiscal Q4 2027, current models are pointing towards a slightly lower number of around 3.15%. According to Gosalia, this discrepancy shows potential challenges in attaining the company’s desired financial metrics.
KeyCorp (NYSE:KEY) is a bank holding company that provides financial services. The company’s operations are divided into the Consumer Bank and Commercial Bank segments.
5. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Forward P/E: 10.46
Stock Price: $15.94
Number of Hedge Fund Holders: 44
Huntington Bancshares Incorporated (NASDAQ:HBAN) is one of the best affordable stocks to buy under $20. Huntington Bancshares Incorporated (NASDAQ:HBAN) received a rating update from Bank of America Securities analyst Ebrahim Poonawala on October 21, who maintained a Buy rating on the stock and raised the price target to $21 from $20.
Poonawala supported the optimistic outlook with the company’s growth potential and solid financial performance, stating that Huntington Bancshares Incorporated (NASDAQ:HBAN) reported a core EPS of $0.40 for fiscal Q3 2025, which exceeded both firm and consensus estimates. The overall financial results were positive despite increased expenses and credit costs, resulting in an upward revision of future earnings estimates.
The analyst further stated that Huntington Bancshares Incorporated’s (NASDAQ:HBAN) current stock valuation is not fully reflecting the company’s growth potential, as its strategic expansion into the Southeast and Texas markets and investments in the Midwest are anticipated to drive considerable growth. The loan growth is expected at 7.5% year-over-year for FY26.
Huntington Bancshares Incorporated (NASDAQ:HBAN) is a bank holding company that provides full-service commercial and consumer deposit, lending, and other banking services. The company’s operations are divided into the Consumer and Regional Banking and Commercial Banking segments.
4. Ford Motor Company (NYSE:F)
Forward P/E: 10.57
Stock Price: $12.56
Number of Hedge Fund Holders: 45
Ford Motor Company (NYSE:F) is one of the best affordable stocks to buy under $20. On October 20, JPMorgan analyst Ruyan Brinkman maintained an Overweight rating on Ford Motor Company (NYSE:F), lifting the price target on the stock to $14 from $13.
The rating update came as part of a Q3 preview for the autos group, with the firm stating that it raised estimates for the auto suppliers (its preferred sector segment) because of favorable trends in commodities and currencies and stronger global light vehicle production.
The firm also slashed estimates for rental car companies, citing more aggressive pricing for them and a rise in low-cost imports for tiremakers.
Ford Motor Company (NYSE:F) manufactures, distributes, and sells automobiles. It operates through the following segments: Ford Blue, Ford Model E, Ford Pro, Ford Next, Ford Credit, and Corporate Other. It is the third-best affordable stock under $20 to add to your portfolio.
3. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Forward P/E: 7.57
Stock Price: $18.99
Number of Hedge Fund Holders: 57
Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the best affordable stocks to buy under $20. Teva Pharmaceuticals International GmbH, a subsidiary of Teva Pharmaceutical Industries Limited (NYSE:TEVA), announced on October 20 that it entered into a license agreement with Prestige Biopharma for “the commercialization of Tuznue (trastuzumab), a biosimilar to Herceptin” across a majority of European markets.
Tuznue is an approved treatment for breast cancer and metastatic gastric cancer, with Prestige Biopharma attaining the European Commission (EC) marketing authorization for the treatment in September 2024.
Management reported that the terms of the license and supply agreement show that Teva Pharmaceutical Industries Limited (NYSE:TEVA) has rights to distribute and market Tuznue in a majority of European markets, leveraging its “extensive commercial network and proven expertise in biosimilars”.
Prestige Biopharma would be responsible for “production and supply through its EU-GMP-certified, high-tech facilities equipped with advanced single-use technology”.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) develops, produces, and sells medicines. Its operations are divided into the US, Europe, and International Markets geographical segments. Each business segment covers the entire product portfolio in that region, including specialty, generics, and over-the-counter (OTC) products.
2. Kenvue Inc. (NYSE:KVUE)
Forward P/E: 14.53
Stock Price: $14.94
Number of Hedge Fund Holders: 72
Kenvue Inc. (NYSE:KVUE) is one of the best affordable stocks to buy under $20. Canaccord Genuity analyst Susan Anderson reiterated a Buy rating on Kenvue Inc. (NYSE:KVUE) on October 17, setting a $26 price target.
Anderson supported the rating with the company’s market position and current legal challenges, stating that she believes that the judge-led legal system may work in the company’s favor despite the recent news about talc lawsuit liabilities in the UK. According to her, a judge-led rather than jury-led system is likely to lead to lower financial liabilities compared to the US, where jury awards can be considerably higher.
The analyst further stated that Kenvue Inc. (NYSE:KVUE) is anticipated to vigorously contest the lawsuit, leveraging scientific data to support the safety of its talc-based products.
Kenvue Inc. (NYSE:KVUE) is a consumer health company that operates through three segments: Skin Health and Beauty, Self Care, and Essential Health. Its Skin Health and Beauty segment offers hair care, body care, face care, and other product categories. The Essential Health segment comprises baby care, women’s health, oral care, and more. The company’s global footprint spans more than 165 countries across its four regions.
1. PG&E Corporation (NYSE:PCG)
Forward P/E: 11.14
Stock Price: $16.74
Number of Hedge Fund Holders: 77
PG&E Corporation (NYSE:PCG) is one of the best affordable stocks to buy under $20. Jefferies analyst Julien Dumoulin-Smith lifted the price target on PG&E Corporation (NYSE:PCG) to $21 from $20 on October 22 and assigned a Buy rating to the stock. The firm told investors in a sector preview that it expects a mostly positive Q3 “super cycle” of updates containing messages of “capex up & cost of capital down” from the utilities sector.
Similarly, Bank of America Securities analyst Ross Fowler also maintained a bullish outlook on the stock, assigning it a Buy rating with a $22 price target on October 20.
PG&E Corporation (NYSE:PCG) also received a rating update from BMO Capital on October 14, with the firm lifting its price target on the stock to $25 from $23 and maintaining an Outperform rating on the shares.
The firm told investors that although PG&E Corporation (NYSE:PCG) boasts a top-tier EPS and rate base growth, it is trading at a deep discount. It added that the stock has several potential catalysts to realize multiple expansion, including a growth dividend yield and an upgrade to investment grade rating.
PG&E Corporation (NYSE:PCG) generates, transmits, and distributes natural gas and electricity to customers. The company specializes in utility, electricity, energy, power, solar, gas, and sustainability.
While we acknowledge the potential of PCG to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PCG and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
