In this article, we are going to look at the 5 Best Stocks Under $20 to Buy According to Hedge Funds. For a longer list and more details on how we picked these stocks, you can go to 10 Best Stocks Under $20 to Buy According to Hedge Funds.
5. Grab Holdings Limited (NASDAQ:GRAB)
Grab Holdings Limited (NASDAQ:GRAB) is one of the best stocks under $20 to buy according to hedge funds. On February 11, Reuters reported that Grab Holdings Limited (NASDAQ:GRAB) forecast fiscal 2026 revenue to come in below market estimates, indicating slower momentum in its core business of ride-hailing and delivery services as consumer concerns grow due to economic uncertainty.
The company projected annual revenue between $4.04 billion and $4.10 billion. This is lower than the $4.13 billion forecast compiled by London Stock Exchange Group. Grab Holdings Limited (NASDAQ:GRAB) also expects annual adjusted EBITDA in the range of $700 million to $720 million, compared with analysts’ expectations of about $721.7 million.
Persistent inflation across major Southeast Asian markets and the effects of US tariff policies have made consumers more selective with spending. As a result, Grab Holdings Limited (NASDAQ:GRAB) has used its Saver platform to attract more budget-conscious customers by offering discounts, offers, and bundling to reduce delivery fees and to keep up with the changing spending patterns.
The company’s CFO, Peter Oey, told Reuters that the company will continue to make its “rides affordable, because that’s really one of the fastest growing businesses in terms of adding new users into the platform today.” Oey added that Grab Holdings Limited (NASDAQ:GRAB) plans to double down on its grocery business, which is expanding about 1.7 times faster than its food delivery business.
According to the report by Reuters, Grab Holdings Limited (NASDAQ:GRAB) also announced a $500 million share buyback program.
Grab Holdings Limited (NASDAQ:GRAB) offers a superapp in Southeast Asia, providing services across deliveries, mobility, and digital financial services. The company serves millions of consumers in Cambodia, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.
4. Kenvue Inc. (NYSE:KVUE)
Kenvue Inc. (NYSE:KVUE) is one of the best stocks under $20 to buy according to hedge funds. On March 5, Barclays increased its price target on Kenvue Inc. (NYSE:KVUE) from $18 to $19 and kept its Equalweight rating.
Barclays analyst Lauren Lieberman pointed out that the company has performed relatively well in the classic consumer health categories, especially Self Care and Essential Health. However, the analyst also noted that the beauty segment requires a different strategy that is focused on premiumization and regimen-focused innovation. According to Barclays, Kenvue Inc. (NYSE:KVUE) has not yet fully developed this type of approach.
Earlier, on February 18, Canaccord Genuity also increased its price target on Kenvue Inc. (NYSE:KVUE) from $17 to $18 and maintained its Hold rating. This update came after the company reported Q4 and full-year 2025 results.
Q4 sales increased 3.2% year-over-year, beating the Street estimate of 0.4%. Organic sales rose 1.2% compared with the same period last year. All of Kenvue Inc.’s (NYSE:KVUE) segments reported growth in Q4. Additionally, adjusted EPS came in at $0.27, higher than the Street estimate of $0.22.
Kenvue Inc. (NYSE:KVUE) is a global consumer health company. The company’s brands include iconic names like Aveeno, BAND-AID, Johnson’s, Listerine, Neutrogena, and Tylenol.
3. PG&E Corporation (NYSE:PCG)
PG&E Corporation (NYSE:PCG) is one of the best stocks under $20 to buy according to hedge funds. On February 20, Morgan Stanley raised its price target on PG&E Corporation (NYSE:PCG) from $21 to $23 and maintained its Equal Weight rating on the stock.
This update comes as the research firm updates its price targets for Regulated & Diversified Utilities and Independent Power Producers in North America under its coverage for January. Morgan Stanley pointed out that utility stocks underperformed the S&P 500 during the month. The research firm also previewed Q4 earnings. Morgan Stanley expects to see some balance in the discussions around data center pipelines because of rising affordability and political concerns.
Earlier, on February 17, Barclays also increased its price target on PG&E Corporation (NYSE:PCG) from $21 to $23 and maintained an Overweight rating on the stock.
The research firm said that it is still positive on the stock following its recent strong performance. Barclays noted that PG&E Corporation’s (NYSE:PCG) fundamentals “remain sound.”
PG&E Corporation (NYSE:PCG) is an energy holding company whose subsidiary, Pacific Gas and Electric Company, provides electricity and natural gas to customers in Northern and Central California.
2. Coupang, Inc. (NYSE:CPNG)
Coupang, Inc. (NYSE:CPNG) is one of the best stocks under $20 to buy according to hedge funds. On March 2, Bernstein SocGen Group reiterated its Underperform rating on Coupang, Inc. (NYSE:CPNG) with a price target of $17 on the stock. This update comes after the company released its Q4 earnings.
The company reported $8.8 billion in revenue for the fourth quarter of 2025, representing 11% growth compared with the same period last year and 14% growth in constant currency. However, Coupang, Inc.’s (NYSE:CPNG) operating profit was $8 million, which marked a sharp decline from the prior year.
Coupang, Inc. (NYSE:CPNG) remained under analyst focus after its latest quarterly results. Earlier, on February 27, BofA Securities cut its price target on Coupang, Inc. (NYSE:CPNG) from $32 to $28 and maintained its Buy rating on the stock.
BofA noted that the company’s Q4 product commerce revenue grew 12% in constant currency, slowing from 18% year-over-year growth in Q3. This slowdown was attributed to the impact of a data incident that affected operations in December and the Chuseok calendar date difference.
Coupang, Inc. (NYSE:CPNG) is a technology company that offers e-commerce, restaurant delivery, video streaming, and fintech services. The company serves its customers through brands like Coupang, Eats, Play, Rocket Now, and FarFetch.
1. Nu Holdings Ltd. (NYSE:NU)
Nu Holdings Ltd. (NYSE:NU) is one of the best stocks under $20 to buy according to hedge funds. On March 4, UBS analyst Thiago Batista reduced the firm’s price target on Nu Holdings Ltd. (NYSE:NU) from $18.40 to $17.20 and kept a Neutral rating on the stock.
This update comes after the company released its financial results for the fourth quarter. Nu Holdings Ltd. (NYSE:NU) added 4 million customers in the fourth quarter of 2025 and a total of 17 million customers throughout the full year. By the end of December 2025, the company had reached 131 million customers worldwide, which represents a 15% year-over-year increase.
However, earlier, on March 2, Morgan Stanley increased its price target on Nu Holdings Ltd. (NYSE:NU) from $18 to $21 and kept its Overweight rating on the stock.
This update came after the firm hosted an investor roundtable with the company’s CFO after Q4 results. Morgan Stanley pointed out that the discussion reinforced Nu Holdings Ltd.’s (NYSE:NU) “long-term compounding story.” The firm also raised its EPS forecast and noted that the current market expectations are “well behind.”
Nu Holdings Ltd. (NYSE:NU) is a financial technology company that operates a digital banking platform. The company has a fully digital model and offers a wide range of financial services to customers in Brazil, Mexico, and Colombia.
While we acknowledge the potential of NU as an investment, 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 NU and that has a 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
