17 Cheap Stocks Under $20 to Buy Now

15. AGNC Investment Corp. (NASDAQ:AGNC)

Stock Price: $10.84

Forward P/E: 7.09

Number of Hedge Fund Holders: 29

AGNC Investment Corp. (NASDAQ:AGNC) is one of the top cheap stocks under $20 to buy now. On December 22, Piper Sandler lifted the price target on AGNC Investment Corp. (NASDAQ:AGNC) to $11 from $10.50 while keeping an Overweight rating on the shares. The rating update came ahead of the fiscal Q4 results for the firm’s mortgage finance coverage, with it telling investors that a positive shift has materialized in the sector’s backdrop. This is driven by the 30-year rates falling to 6.2% from 7%-plus highs earlier in the year, along with the material tightening in agency spreads.

Piper Sandler further stated that while the market hasn’t completely “normalized” as of yet, the momentum is building and mortgage application volumes are growing, supported by an 18% sequential and 100%-plus year-over-year surge in refinance activity. It added that the spotlight is likely to return to GSE reform, given the administration’s push for a deal under FHFA Director Bill Pulte and President Trump.

AGNC Investment Corp. (NASDAQ:AGNC) also received a rating update from Keefe Bruyette on December 18, with the firm lifting the price target to $11 from $10.50 while keeping an Outperform rating on the shares. The firm told investors in a research note that heading into the new year, it is the most constructive on the agency MBS REITs.

AGNC Investment Corp. (NASDAQ:AGNC) operates a real estate investment trust, investing in residential mortgage pass-through securities and collateralized mortgage obligations, the principal and interest payments for which are guaranteed by the government-sponsored enterprise or by the United States government agency. The company is also involved in investments in other types of mortgage and mortgage-related securities, including credit risk transfer securities and non-Agency residential and commercial mortgage-backed securities.