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Best Stocks Under $20

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American Airlines Group (NASDAQ: AAL)

American Airlines is one of the “big four” U.S. airlines. Prior to the 2020 pandemic, the company operated nearly 6,700 flights per day to 350 destinations in more than 50 countries.

The pandemic has decimated air travel demand, sending shares of American Airlines tumbling in 2020. Fortunately, the U.S. government has repeatedly stepped in to provide American and other airlines with loans they need to navigate the downturn. It may take a while for air traffic to return to pre-crisis levels, but airline stocks could gain major altitude when the first coronavirus vaccine hits the market, likely in early 2021.

American shares currently trade at only 3.4 times 2019 EPS, suggesting Americans could have major valuation upside even if the airline industry never fully recovers.

11.28 0.12 (1.08%)
Volume 51.35M Market Cap 4.77B
10.98 - 11.415
8.25 - 31.58
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Enterprise Prods Partners (NYSE: EPD)

Enterprise Products is a leading provider of midstream energy services. Its serves clients that are producers and consumers of natural gas, natural gas liquids, crude oil, refined products and petrochemicals. Enterprise Products owns and operates 22 natural gas processing plants and has the capacity to store 14 billion cubic feet of natural gas.

The natural gas stock has a market cap of $36 billion and has an EPS of $2.04. It has an annual dividend yield of $1.78 per share. Enterprise Products has high liquidity and trades more than 12 million shares per day. It generated revenue of $32 billion in 2019.

16.58 -0.2501 (-1.49%)
Volume 6.98M Market Cap 36.24B
16.42 - 16.74
10.27 - 29.22
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Ares Capital (NASDAQ: ARCC)

Ares Capital Corporation is a leading specialty finance company. It provides financial solutions to meet the distinct and underserved financing needs of private middle-market companies across diverse industries. Ares Capital invests primarily in lien loans and mezzanine debt.

The finance stock has a market cap of $5 billion and has an EPS of $0.75. It has an annual dividend yield of $1.6 per share. Ares Capital has high liquidity and trades more than 4 million shares per day. It generated revenue of $1.2 billion in 2019.

13.83 -0.09 (-0.65%)
Volume 2.27M Market Cap 5.84B
13.54 - 13.91
7.9 - 19.33
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Dave & Buster's Enter (NASDAQ: PLAY)

Hit hard by the effects of the lockdown amid the pandemic, Dave & Buster’s operates venues that feature family gaming facilities, spectator sports and other televised events. The venues feature menus of entrees and appetizers, as well as alcoholic and non-alcoholic beverages.

PLAY stock sold off hard in March but currently trades at significantly higher levels around $14. The company’s business and its shares are expected to continue its rebound as states re-open, making owning the stock a prime post-pandemic play.

17.16 -0.315 (-1.8%)
Volume 1.61M Market Cap 813.13M
16.74 - 17.82
4.605 - 48.8
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Prosus (OTC: PROSY)

Based in the Netherlands and formerly known as Myriad International Holdings, Prosus N.V. operates internet platforms for international e-commerce. It also owns other businesses in the retail, travel, fintech and food delivery sectors.

The international company has operations in China, Russia, India, Central and Eastern Europe, Latin and North America, Southeast Asia, the Middle East and Africa. Since the stock has its base in the Netherlands, you can buy American Depository Receipts (ADRs) on this stock in the OTCMKT stock market.

20.01 0.45 (2.3%)
Volume 73.18K Market Cap 162.65B
19.85 - 20.29
11.5895 - 21.16
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Stocks Under $20 Movers of the Day

Of the stocks mentioned, one of them has its base in the Netherlands and one has a direct correlation with the price of gold. These stocks, PROSY and ASA, are the most likely premarket movers among our picks. Stocks with premarket volatility generally have their base abroad or their business tied to an underlying commodity like gold, which trades round the clock.

Although stocks are generally more vulnerable after earnings announcements, an extraordinary event that directly affects the company could also make the stock extremely active. For example, a sharp move in the gold market, news of product development by HP or a takeover bid on Overstock.com could be events that would probably move some of these stocks significantly.

The data provided below is intended for educational purposes only, we have included the session dates for your reference.

Premarket Stocks Under $20
Symbol Last Price Change % Change Trade
MARPS 3.4 0.94 38.21% Trade
BLRX 1.995 0.515 34.79% Trade
TCDA 5.62 1.25 28.6% Trade
AIRI 1.3101 0.29 28.44% Trade
DSKE 6.5486 1.359 26.17% Trade
BBW 4.1711 0.851 25.63% Trade
MICT 3.13 0.57 22.26% Trade
CASI 2.35 0.42 21.76% Trade
LNSR 9.81 1.65 20.22% Trade
CVA 9.03 1.415 18.58% Trade
Symbol Last Price Change % Change Trade
SNBP 2.92 -6.58 -69.27% Trade
DUOT 3.4634 -3.537 -50.53% Trade
AXGT 2.1245 -1.525 -41.8% Trade
BLCM 3.69 -2.21 -37.46% Trade
PBI 5.31 -2.11 -28.44% Trade
NTEC 2.28 -0.796 -25.88% Trade
NUZE 12.9 -4 -23.67% Trade
MVIS 1.73 -0.48 -21.72% Trade
POLA 2.9101 -0.79 -21.35% Trade
LOCO 14.11 -3.49 -19.83% Trade
Market Stocks Under $20
Symbol Last Price Change % Change Trade
NTEC 2.97 2.816 1831.07% Trade
BLRX 2.26 0.78 52.7% Trade
SDPI 0.575 0.149 35% Trade
AIRI 1.37 0.35 34.31% Trade
EQ 7.07 1.07 17.83% Trade
PLT 21.9 2.89 15.2% Trade
DZSI 11.16 1.43 14.69% Trade
MGI 5.1 0.61 13.58% Trade
DSKE 5.89 0.7 13.48% Trade
NCMI 2.18 0.24 12.37% Trade
Symbol Last Price Change % Change Trade
BLCM 3.86 -2.04 -34.58% Trade
AXGT 2.58 -1.07 -29.32% Trade
RYI 6.05 -2.03 -25.13% Trade
MVIS 1.77 -0.44 -19.91% Trade
HEXO 0.588 -0.134 -18.53% Trade
NTWK 2.0004 -0.45 -18.36% Trade
UUU 2.84 -0.51 -15.23% Trade
PSHG 0.42 -0.07 -14.29% Trade
PXLW 1.97 -0.31 -13.6% Trade
POLA 3.2 -0.5 -13.52% Trade
After Hours Stocks Under $20
Symbol Last Price Change % Change Trade
ISIG 1.03 0.2 24.08% Trade
VHC 6.75 1.21 21.84% Trade
DNOW 4.63 0.55 13.48% Trade
VRNA 6.51 0.64 10.9% Trade
ATHE 1.37 0.13 10.48% Trade
NWGI 1.65 0.14 9.27% Trade
GTEC 1.95 0.14 7.73% Trade
GNCA 2.24 0.16 7.69% Trade
AEMD 1.44 0.1 7.46% Trade
XPL 0.45 0.03 7.14% Trade
Symbol Last Price Change % Change Trade
ORTX 3.58 -0.46 -11.39% Trade
BDR 1.17 -0.12 -9.31% Trade
PED 1.38 -0.13 -8.61% Trade
BIOX 5.555 -0.495 -8.19% Trade
NVUS 24.1 -2.08 -7.95% Trade
UUU 2.87 -0.24 -7.72% Trade
ESGC 1.78 -0.14 -7.3% Trade
NEXT 2.25 -0.17 -7.03% Trade
BLCM 3.45 -0.26 -7.01% Trade
CDEV 0.5801 -0.04 -6.4% Trade

Stocks under $20 offer investors and traders a lower-cost alternative to more expensive stocks. Despite the misperception that lower-priced stocks carry more risk, the risk profile of many stocks under $20 compares favorably with stocks trading at much higher prices, as does the opportunity for profiting from investing in them. 

In addition, well-established stocks under $20 often pay dividends, which can be ideal for income-minded investors. Some stocks under $20 even have listed options, which can give you additional avenues of income if you wish to sell covered call options. 

Whatever your investing or trading goals might be, stocks under $20 cover a wide range of companies and can offer great opportunities for profit. 

Overview: Best Stocks Under $20

Our picks for best stocks under $20 include a precious metals and mining fund, a large computer manufacturer, an online retail outlet, a family entertainment company and an international e-commerce and internet business. Each of these stocks represents a company with a unique product or service or one that already holds a prominent position in its field.

Best Online Brokers for Stocks Under $20

If you’d like to start trading or investing in stocks under $20, as well as stocks under $10 and stocks under $5, you can through any reputable broker with access to U.S. stock markets. Many online brokers, such as Charles Schwab, Vanguard, TD Ameritrade, E*TRADE, Robinhood and Firstrade, offer commission-free trading. More experienced, active and well-funded traders can use Interactive Brokers, although it charges inactivity fees and has a high minimum deposit requirement. A broker comparison table to help you choose among them appears below. 

Commissions
$0
Account Minimum
$0
Get started securely through Webull’s website
Commissions
$0
Account Minimum
$0
1 Minute Review

Webull, founded in 2017, is a mobile app-based brokerage that features commission-free stock and exchange-traded fund (ETF) trading. It’s regulated by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Webull offers active traders technical indicators, economic calendars, ratings from research agencies, margin trading and short-selling. Webull’s trading platform is designed for intermediate and experienced traders, although beginning traders can also benefit.

Webull is widely considered one of the best Robinhood alternatives.

Best For
  • Active traders
  • Intermediate traders
  • Advanced traders
Pros
  • Commission-free trading in over 5,000 different stocks and ETFs
  • No account maintenance fees or software platform fees
  • No charges to open and maintain an account
  • Leverage of 4:1 on margin trades made the same day and leverage of 2:1 on trades held overnight
  • Intuitive trading platform with technical and fundamental analysis tools
Cons
  • Does not support trading in options, mutual funds, bonds or OTC stocks
Commissions
$0
Account Minimum
$0
Get started securely through TradeStation’s website
Commissions
$0
Account Minimum
$0
1 Minute Review

TradeStation is for advanced traders who need a comprehensive platform. The brokerage offers an impressive range of investable assets as frequent and professional traders appreciate its wide range of analysis tools. TradeStation’s app is also equally effective, offering full platform capabilities.

Best For
  • Advanced traders
  • Options and futures traders
  • Active stock traders
Pros
  • Comprehensive trading platform and professional-grade tools
  • Wide range of tradable securities
  • Fully-operational mobile app
Cons
  • Confusing pricing structure to leave new traders with a weak understanding of what they pay
  • Cluttered layout to make navigating TradeStation’s platform more difficult than it should be
Commissions
$0 $6.95 for OTC Stocks
Account Minimum
$0
Get started securely through TD Ameritrade’s website
Commissions
$0 $6.95 for OTC Stocks
Account Minimum
$0
1 Minute Review

This publicly listed discount broker, which is in existence for over four decades, is service-intensive, offering intuitive and powerful investment tools. Especially, with equity investing, a flat fee is charged, with the firm claiming that it charges no trade minimum, no data fees, and no platform fees. Though it is pricier than many other discount brokers, what tilts the scales in its favor is its well-rounded service offerings and the quality and value it offers its clients.

Best For
  • Novice investors
  • Retirement savers
  • Day traders
Pros
  • World-class trading platforms
  • Detailed research reports and Education Center
  • Assets ranging from stocks and ETFs to derivatives like futures and options
Cons
  • Thinkorswim can be overwhelming to inexperienced traders
  • Derivatives trading more costly than some competitors
  • Expensive margin rates

Features to Look for in Stocks Under $20

  • Desirable product or service: To achieve success with stock investments, one of your first and foremost considerations should be whether the company has a viable product or service with significant current or anticipated demand for future earnings growth.
  • Good financials: Reviewing the financial profile of the companies whose stocks you’re considering buying will give you a sense of the firm’s assets and liabilities. Pick companies with a solid and improving financial situation and avoid those facing serious business challenges. You can also look for companies whose earnings per share (EPS) do not yet reflect the future business scenarios you expect for them.
  • Analyst ratings: Because liquidity tends to be higher with stocks under but close to $20, many market analysts take the time to review and rate them. Their professional analysis can give you a good idea of whether a stock shows promise as an investment. Also, when a company’s stock receives a good review from a reputable analyst, it tends to attract buying interest in the stock. This then causes the stock’s market price to rise. 

Are Stocks Under $20 Worth Buying?

While some stocks under $20 are definitely worth buying and holding in your portfolio, you do need to do your research on a company before pulling the trigger. You also need to choose carefully because some stocks are on their way to 0 as their companies head toward insolvency, while others could be the next rising star. 

Consider looking for inexpensive companies to invest in with a popular product or necessary service and a respectable financial position. Also, if you plan on taking a large position or engaging in short-term trading in stocks under $20 per share, then choose those with decent market liquidity. 

Hire a Pro: Compare Financial Advisors In Your Area