In this article, we discuss the 5 stocks under $20 to buy now. If you want to read about some more high potential stocks, go directly to 10 Stocks Under $20 to Buy Now.
5. TrueBlue, Inc. (NYSE:TBI)
Number of Hedge Fund Holders: 13
Share Price as of December 14: $19.56
TrueBlue, Inc. (NYSE:TBI) provides specialized workforce solutions in the United States, Canada, and Puerto Rico. In late October, the firm posted earnings for the third quarter of 2022, reporting earnings per share of $0.63, beating market estimates by $0.03. The revenue over the period was $576 million, down 0.2% compared to the prior year.
On October 25, Baird analyst Mark Marcon maintained an Outperform rating on TrueBlue, Inc. (NYSE:TBI) stock and raised the price target to $28 from $21, noting that third-quarter results and fourth-quarter were below expectations as cyclical slowing is becoming more apparent.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Pzena Investment Management is a leading shareholder in TrueBlue, Inc. (NYSE:TBI) with 2.2 million shares worth more than $42.6 million.
4. AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO)
Number of Hedge Fund Holders: 14
Share Price as of December 14: $14.90
AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) an oncology-focused biopharmaceutical company, focuses on developing and commercializing medicines for patients with cancer. On October 18, AVEO Pharmaceuticals revealed that it would be acquired by LG Chem, the largest Korean chemical company, for $15.00 per share in an all-cash transaction with an implied equity value of $566 million on a fully diluted basis. Shares of AVEO jumped 38% premarket in response to the news.
At the end of the third quarter of 2022, 14 hedge funds in the database of Insider Monkey held stakes worth $50.3 million in AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO), compared to 9 in the preceding quarter worth $38.7 million.
3. SoFi Technologies, Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 25
Share Price as of December 14: $4.43
SoFi Technologies, Inc. (NASDAQ:SOFI) provides digital financial services. It operates through three segments: Lending, Technology Platform, and Financial Services. The shares of the firm have been trading at a discount as US lawmakers scrutinize the fintech industry in response to a large-scale drawdown in the crypto world. However, this discount has made the risk/reward profile of the firm more appealing.
On November 23, Mizuho analyst Dan Dolev maintained a Buy rating on SoFi Technologies, Inc. (NASDAQ:SOFI) stock and lowered the price target to $6 from $7.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Silver Lake Partners is a leading shareholder in SoFi Technologies, Inc. (NASDAQ:SOFI) with 31.2 million shares worth more than $152 million.
In its Q4 2021 investor letter, Altron Capital Management, an asset management firm, highlighted a few stocks and SoFi Technologies, Inc. (NASDAQ:SOFI) was one of them. Here is what the fund said:
“We have been building our position in SoFi Technologies, Inc. (NASDAQ:SOFI) over the last two quarters but have not yet written about our thesis until now. SoFi is an online financial technology company that started off refinancing student loans. This segment remains a big part of the company’s business, but they have more recently expanded their products to offer an entire suite of financial services including personal banking, investing, and credit. While their collection of products is still evolving and not yet complete, we believe the company is in the early stages of its inflection. The company nearly doubled its member count over the past year and is growing 50%+ despite its loan refinancing business taking a hit due to the COVID-related loan moratorium. Furthermore, the company is close to obtaining a bank charter through its acquisition of Golden Pacific Bancorp, a community bank based in Sacramento. A bank charter would allow SoFi to take in its customer deposits, lowering its cost of capital and expanding the company’s breadth of financial offerings.
While SoFi is not the only online banking platform out there, we believe it could take a decent share of the financial services market. Banking is a notoriously sticky business, as the inconvenience and hassle of switching banks prevent consumers from jumping to competitors regardless of cost. This is one of the reasons that traditional banks are one of the few businesses to have truly been disrupted by technology. We think SoFi is well on its way to changing that and creating a new paradigm for the future of consumer banking and financial services. (read more)
2. Asana, Inc. (NYSE:ASAN)
Number of Hedge Fund Holders: 26
Share Price as of December 14: $15.50
Asana, Inc. (NYSE:ASAN) operates a work management platform for individuals, team leads, and executives in the United States and internationally. On December 2, DA Davidson analyst Robert Simmons maintained a Neutral rating on Asana, Inc. (NYSE:ASAN) stock and lowered the price target to $18 from $20, highlighting that the company posted its smallest revenue beat in the past nine quarters amid a macro economic slowdown.
Among the hedge funds being tracked by Insider Monkey, Singapore-based firm Himension Capital is a leading shareholder in Asana, Inc. (NYSE:ASAN) with 7.5 million shares worth more than $167.5 million.
In its Q3 2022 investor letter, Diamond Hill Capital, an asset management firm, highlighted a few stocks and Asana, Inc. (NYSE:ASAN) was one of them. Here is what the fund said:
“Work management software company Asana, Inc. (NYSE:ASAN) has, in our view, a relatively undifferentiated and discretionary software product within a software category that will likely be meaningfully smaller than anticipated. Additionally, Asana’s operating losses continue to widen as its revenues have begun decelerating.”
1. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 47
Share Price as of December 14: $13.57
Ford Motor Company (NYSE:F) designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. On December 1, Ford Motor announced that it will invest an additional 149 million GBP to raise electric vehicle power unit capacity at its engine factory in northern England by 70% in a push to go electric in Europe by 2030.
On November 30, Citi analyst Itay Michaeli maintained a Neutral rating on Ford Motor Company (NYSE:F) stock and raised the price target to $14 from $13, highlighting that the new targets of the firm represent modestly higher multiples reflecting the company’s improved auto free cash flow conversion this year.
At the end of the third quarter of 2022, 47 hedge funds in the database of Insider Monkey held stakes worth $1.2 billion in Ford Motor Company (NYSE:F), compared to 46 in the preceding quarter worth $608.8 million.
In its Q3 2022 investor letter, Leaven Partners, an asset management firm, highlighted a few stocks and Ford Motor Company (NYSE:F) was one of them. Here is what the fund said:
“In our last quarterly letter, I briefly mentioned that the consensus estimates for corporate profits appeared to be a bit too sanguine. I referenced a Reuters article that reported, as of June 17, Wall Street expected S&P 500 earnings to grow by 9.6% in 2022, which was up from 8.8% in April and from 8.4% in January. That tune began to change at the end of July and accelerated in August and September, as major players, such as Ford (NYSE:F), have recently issued profit warnings and/or have withdrawn guidance. In response, Wall Street has altered its outlook: lowering third-quarter profit growth to 4.6% [2] from 7.2% in early August and slashing full-year profit growth to 4.5%.”
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