Published on 17 Nov 2022 on Insider Monkey via Yahoo Finance

10 Best Stocks Under $20

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

We prepared this article back in May 2022, when the market crash was just getting started and the Fed had begun its spree of rate hikes. We are publishing this article today and it'd be interesting for the readers to see how these stocks, which looked strong back in May, have performed over these past five months. We had picked these stocks based on long-term growth catalysts, Wall Street analyst ratings and hedge fund sentiment, which we had gauged using the holdings data of 912 elite hedge funds we tracked as of the first quarter of this year. With each stock, we have mentioned its price on May 25 and its latest price as of November 17. You can easily see the performance of these stocks and how the macroeconomic environment crushed some of these companies. Many of these stocks however indeed were some of the best stocks in hindsight.

Cheap stocks provide investors of all sorts an opportunity to generate attractive returns in a short period of time in an era of surging market values. Investing in such stocks carries some risk, but it is this risk that has distinguished success and failure in the market over the last few years. The inflation rate is touching 40-year highs, while the bond market expects the Federal Reserve to hike interest rates to a range between 2.75% and 3% by the end of this year. In these circumstances, investors are on the lookout for low-priced stocks that can yield healthy returns. As professional investors search out bargains and sell high-flying stocks that have been in demand since the financial crisis, value stocks are giving some relief to investors from the volatility surrounding the economy.