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Best Stocks Under $20

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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. 

Highlighted Best Stocks Under $20:

Symbol Company Change Price
ASA ASA Gold & Precious Metal
– 2.69%
$14.85
HPQ HP
+ 6.78%
$16.86
OSTK Overstock.com
– 2.49%
$21.16
PLAY Dave & Buster's Enter
+ 19.61%
$15.92
PROSY Prosus
+ 0.41%
$17.12

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

Best For
Pros
Cons
JP Morgan Chase
Commissions
$0
Account Min
$0
Get started securely through JP Morgan Chase’s website
Commissions
$0
Account Min
$0
1 Minute Review

Chase You Invest is the retail brokerage arm of JP Morgan Chase, the largest bank in the United States. While most of the firm’s products are targeted toward wealthy clientele, You Invest gives novice investors a chance to learn about markets, select the best securities and plan for future goals like retirement. No futures, forex, or margin trading is available, so the only way for traders to find leverage is through options. 

Not all investors will appreciate the basic setup and simplistic trading suggestions, but plenty more want to learn about markets but just don’t know where to get started. Chase You Invest provides that starting point, even if most clients eventually grow out of it.

Best For
  • Investors using Chase banking products
  • Mobile traders
  • Retirement savers
Pros
  • Easy to navigate
  • Functional mobile app
  • Cash promotion for new accounts
Cons
  • No forex or futures trading
  • Limited account types
  • No margin offered
TradeStation
Commissions
$0
Account Min
$0
Get started securely through TradeStation’s website
Commissions
$0
Account Min
$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

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. 

Stocks to Watch Out for This Year

Most of the stocks covered below sold off considerably due to the COVID-19 pandemic and associated shutdowns, although they have now begun to increase in price as reopenings continue — a promising sign for their future valuation. One of the stocks, Dave & Buster’s Entertainment, has almost tripled since March 2020. Other stocks have not yet fully recovered so they can still be bought at levels lower than they were at the beginning of 2020 when markets had not yet fully reacted to the shutdown and its severe economic implications. 

1. ASA Gold and Precious Metals Limited (NYSE: ASA) 

Given the recent rally in the gold and precious metals market, ASA Gold and Precious Metals stock could be a good way to invest in the gold market. The company runs a closed-end, nondiversified fund with long-term capital appreciation derived from its investments in the global mining sector. ASA stock has recovered considerably after it traded as low as $8.70 in March 2020.    

2. HP Inc. (NYSE: HPQ) 

According to some analysts, the demise of the PC has been greatly exaggerated. Although the former tech giant Hewlett-Packard has probably seen better times, its stock seems poised for a rebound. The company recently declared a quarterly dividend of $0.1762, which yields 4.74% with the stock at current levels above $15 per share. While you may not double your money on your investment, HPQ stock could make for a solid investment with substantial dividend income. 

3. Overstock.com (NASDAQ: OSTK)

Overstock.com was founded in 1999 and has rather quickly evolved from a startup to a billion-dollar online retailer. The company offers discounts on a wide variety of goods that can be purchased online for home delivery.  Despite negative earnings, some analysts think OSTK stock has considerable upside potential from its current level just under $17 toward a considerably higher 12-month target ranging between $32.50 to as much as $40 per share.

4. Dave & Buster’s Entertainment (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. 

5. Prosus N.V. ADR (OTCMKT: 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.  

Biggest 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.

Gainers

Session: Jun 2, 2020 4:00 pm – Jun 3, 2020 3:59 pm
Symbol Open Close Change Change % Volume
Buy SIG Stock – Trade for Free SIG
Signet Jewelers
11.31 14.30 2.99 26.39% 3.60M
Buy SAVE Stock – Trade for Free SAVE
Spirit Airlines
14.32 17.20 2.88 20.11% 25.60M
Buy PLAY Stock – Trade for Free PLAY
Dave & Buster's Enter
13.31 15.85 2.54 19.08% 13.20M
Buy CRTO Stock – Trade for Free CRTO
Criteo
11.13 13.23 2.10 18.87% 96.47K
Buy DFEN Stock – Trade for Free DFEN
Direxion Daily Aerospace & Defense Bull 3X Shares
13.69 15.92 2.23 16.25% 1.37M
Buy ONEW Stock – Trade for Free ONEW
OneWater Marine
15.85 18.37 2.52 15.90% 15.62K
Buy LSXMR Stock – Trade for Free LSXMR
Liberty Media Corporation – Right
11.65 13.42 1.77 15.19% 20.71K
Buy VVI Stock – Trade for Free VVI
Viad
19.13 21.95 2.82 14.74% 18.81K
Buy BNKU Stock – Trade for Free BNKU
MicroSectors U.S. Big Banks Index 3X Leveraged ETNs
14.33 16.43 2.10 14.65% 67.96K
Buy STRT Stock – Trade for Free STRT
Strattec Security
14.77 16.93 2.16 14.62% 40.54K
Buy SGMS Stock – Trade for Free SGMS
Scientific Games
16.24 18.58 2.34 14.41% 1.61M
Buy GIII Stock – Trade for Free GIII
G-III Apparel Group
11.87 13.48 1.61 13.56% 1.52M
Buy OUT Stock – Trade for Free OUT
Outfront Media
14.47 16.40 1.93 13.30% 2.27M
Buy CMTL Stock – Trade for Free CMTL
Comtech Telecomms
18.51 20.94 2.43 13.13% 34.23K
Buy EPRT Stock – Trade for Free EPRT
Essential Props Realty
15.26 17.25 1.99 13.04% 69.16K
Buy RBNC Stock – Trade for Free RBNC
Reliant Bancorp
13.05 14.74 1.69 12.95% 23.42K
Buy OPRT Stock – Trade for Free OPRT
Oportun Financial
11.12 12.55 1.43 12.86% 15.59K
Buy KRG Stock – Trade for Free KRG
Kite Realty Gr Trust
10.89 12.28 1.39 12.72% 23.04K
Buy CIT Stock – Trade for Free CIT
CIT Group
19.06 21.48 2.42 12.70% 2.04M
Buy CWK Stock – Trade for Free CWK
Cushman & Wakefield
10.99 12.38 1.39 12.65% 1.37M

Losers

Session: Jun 2, 2020 4:00 pm – Jun 3, 2020 3:59 pm
Symbol Open Close Change Change % Volume
Buy BRBS Stock – Trade for Free BRBS
Blue Ridge Bankshares, Inc. Common Stock
20.75 15.49 -5.26 -25.35% 10.42K
Buy TBIO Stock – Trade for Free TBIO
Translate Bio
19.84 16.02 -3.82 -19.25% 66.57K
Buy BNKD Stock – Trade for Free BNKD
MicroSectors U.S. Big Banks Index -3X Inverse Leveraged ETNs
15.76 12.95 -2.81 -17.83% 23.30K
Buy PSNL Stock – Trade for Free PSNL
Personalis
14.08 11.98 -2.10 -14.91% 25.76K
Buy INO Stock – Trade for Free INO
Inovio Pharmaceuticals
14.34 12.45 -1.89 -13.18% 21.61M
Buy RAPT Stock – Trade for Free RAPT
RAPT Therapeutics
20.43 18.42 -2.01 -9.84% 89.95K
Buy DRV Stock – Trade for Free DRV
Drexion Daily Real Estate Bear 3x Shares
16.88 15.22 -1.66 -9.83% 29.57K
Buy FAZ Stock – Trade for Free FAZ
Direxion Financial Bear 3X Shares
18.41 16.72 -1.69 -9.18% 3.95M
Buy PAACU Stock – Trade for Free PAACU
Proficient Alpha
9.37 8.52 -0.85 -9.07% 8.41K
Buy SMDD Stock – Trade for Free SMDD
UltraPro Short MidCap400
16.39 15.05 -1.34 -8.18% 35.11K
Buy FMCIU Stock – Trade for Free FMCIU
Forum Merger II
15.25 14.05 -1.20 -7.87% 0.61K
Buy SDD Stock – Trade for Free SDD
ProShares UltraShort SmallCap600
11.10 10.23 -0.87 -7.84% 18.63K
Buy BELFA Stock – Trade for Free BELFA
Bel Fuse
11.21 10.37 -0.84 -7.49% 0.15K
Buy PTGX Stock – Trade for Free PTGX
Protagonist Therapeutics
16.77 15.53 -1.24 -7.39% 22.86K
Buy MYOV Stock – Trade for Free MYOV
Myovant Sciences
17.70 16.42 -1.28 -7.23% 63.12K
Buy OSUR Stock – Trade for Free OSUR
OraSure Technologies
12.11 11.27 -0.84 -6.94% 4.26M
Buy SRTY Stock – Trade for Free SRTY
ProShares UltraPro Short Russell2000
12.30 11.45 -0.85 -6.91% 4.07M
Buy SWBI Stock – Trade for Free SWBI
Smith & Wesson Brands
14.99 13.97 -1.03 -6.84% 1.99M
Buy CLLS Stock – Trade for Free CLLS
Cellectis
19.04 17.74 -1.30 -6.83% 23.88K
Buy VSTO Stock – Trade for Free VSTO
Vista Outdoor
11.45 10.70 -0.75 -6.55% 1.10M

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. 

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