5 Best Stocks Under $20

In this article, we discuss the 5 best stocks under $20. If you want to read our detailed analysis of these stocks, go directly to the 10 Best Stocks Under $20.

5. Magnachip Semiconductor Corporation (NYSE:MX)

Stock Price as of May 25: $18.76

Stock Price as of November 17: $9.44

Number of Hedge Fund Holders: 28

Magnachip Semiconductor Corporation (NYSE:MX) is a Korean designer and manufacturer of OLED displays and other analog and mixed-signal semiconductor products, mainly for electronics and power companies. The products manufactured by Magnachip Semiconductor Corporation (NYSE:MX) are used in a diversified range of devices like automobiles, desktop PCs, LED lighting, smartphones, and smartwatches.

Magnachip Semiconductor Corporation (NYSE:MX) stock is in the news as a Korean financial website has claimed that a company known as LX Semicon intends to acquire Magnachip Semiconductor for $25 per share. This provides a potential upside of over 30% from the previous closing price. There are other bidders in the market also, who may bid a higher price. The long-term revenue outlook of Magnachip Semiconductor Corporation (NYSE:MX) seems strong as the OLED market is expected to rise at around 13% annually to reach $72.8 billion by 2026. Magnachip Semiconductor Corporation (NYSE:MX) is at an attractive valuation against its competitors as it is trading at a trailing twelve months (TTM) P/S ratio of 1.58x.

Magnachip Semiconductor Corporation (NYSE:MX) was discussed in the Q4 2021 investor letter of Altron Capital Management. Here’s what the firm said:

“MagnaChip Semiconductor Corp. (NYSE:MX). While the previous buyout offer from Wise Road Capital did not go through as many expected, the company is still in talks with other potential buyers. Furthermore, the company announced a USD 75 million share buyback, which represents a significant percentage of the company’s shares. While we do not generally enter positions with the anticipation of a buyout, it is the case that a MagnaChip acquisition will be the most likely outcome.”