Looking to enter the stock market but want to keep the costs reasonable? Take a look as we have chosen 7 stocks that are looking to be great buys in 2021 whilst sitting at their attractive price of $20 or under.
Top Stocks To Buy At $20 And Under
If you are a beginner investor and wondering where to start your stock trading journey without splashing the cash into some of the world's top leading stocks on the market today such as Amazon (AMZN), Microsoft Corp (MSFT) and Alphabet (GOOGL), who all hold share prices of over $1,000. Then we are here to tell you that it is possible to find and be a part of great performing stocks that sit at more affordable prices with great upside potential, proving to be the perfect additions to add to your collection and to get your trading journey underway.
Let’s be realistic from the start, when coming across stocks that are sitting at an attractive price of $20 or under this does not necessarily mean that the stock is cheap. Or on the flip side, that the company is in trouble as it sits at such a price.
This is where research comes strongly into play when looking at such stocks. Firstly looking at a stocks share price, hand-in-hand with its valuation are the two main factors.
It is also strongly recommended that investors analyse a stocks earnings, sales, take a look at a company’s past history and look at a stocks growth plans ahead, as all of these elements will confirm if the stock is in fact worth investing into.
On the back of these findings through thorough research, yes it is also possible to stumble across the hidden gems of undervalued stocks. These stocks are every investor's dream when found and bought at the right time as they sit under their true intrinsic value and offer great returns to their investors. And who knows, they could even potentially be a leading performing stock over time.
Contents
- 7 Best Stocks to Buy $20 and Under
- Features To Look For In Stocks Under $20
- Are Stocks $20 And Under Worth Investing In?
- Overview: 7 Best Stocks $20 And Under
On that note, let’s take a look at 7 of the best stocks priced at $20 and under to look to buy in for 2021 that are sitting attractively.
The chosen stocks are all set across various industries, most having a solid past history performance and the main factor in common for these stocks are their eye-catching share prices along with their seemingly attractive valuation outlook.
List of 7 Stocks to Buy $20 and Under:
- Ford Motor Co (F)
- JetBlue Airways Corp (JBLU)
- Global Net Lease Inc (GNL)
- Albertsons Companies Inc (ACI)
- IMAX Corp (IMAX)
- Aphria Inc (APHA)
- Aurora Cannabis Inc (ACB)
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1. Ford Motor Co (F)
The first stock to start us off is the American automaker Ford Motor Co (F).
For many years Ford has been a well respected and reliable automaker across the globe and is still pulling in good results. Over recent years the strong shift into electric vehicles (EV’s) has pushed automaker companies further into the limelight with the likes of Tesla (TSLA) and Nio (NIO) who have both dominated within this field.
But this clear shift into EV’s is where F stock could again show the likes of the newer automotive companies what it's made of as its reputation is built on more than just a story.
In the company's recent Fourth Quarter and Full Year 2020 Report Ford confirmed that it plans to push forward heavily on its electronic creations with the stock confirming that it has invested $7 billion into electrification in 2020, adding to its clear pathway of investing $22 billion by 2025.
Ford has already announced plans for an all-electric van, E-transit and an all-electric pickup F-150, making it the first auto company on the market to produce such designs.
After the company’s Mustang Mach-E release at the end of 2020, it was confirmed that the stock took the shine away from popular Tesla stock as its market share declined by -70% with Ford’s latest creation being the main reason.
The company’s plans moving forward are focused strongly on reconstruction in South America, which will set the company in a stronger position across various other markets, to keep on maintaining a strong turnaround, its solid drive in EV’s and maintaining a strong balance sheet as the stock currently holds $31 billion in cash providing great flexibility for future long-term investments.
Despite huge challenges over the past year and the competition that surrounds, Ford did still make good groundwork in 2020. The company confirmed that it generated $1.9 billion in operating cash flow, delivered Adjusted EBIT of $1.7 billion along with Europe being confirmed of achieving its strongest quarterly profit in over four years with an Adjusted EBIT margin of 5.8%, alongside holding the number #1 spot as the leader in commercial vehicles.
Even though F stock finished $28.8 billion down in revenue to $127.1 billion YoY, this is nothing to be concerned deeply over in the bigger picture. Analysts have predicted that the stock could reach a revenue forecast in the next three years of $156.9 billion, a positive difference of $29 billion.
Ford is a great value stock that trades much less than other automotive companies on the market today and is currently up just over 35%. Whilst the stock currently sits on a share price of $12.73 and holding a 52-week range of $4.41 at its lowest and $13.62 at its highest.
In recent days Ford’s shares are currently trading 6.16% higher over the past week based on the stocks EV push.
Analysts are also being firm on the stock giving Ford a ‘Strong Buy’ rating with Wells Fargo giving the stock a price target of $15, a 16% upside from today's price. Additionally, an average price target has been given of $13.08 with a high estimate of $16 and a low estimate of $9.
As sales within the U.S have surged by 23% in the company’s First Quarter, this has led the stock to its recent increase within its shares.
Given Ford’s solid permanence history, its strong drive in pushing forward the next-generation EV’s, alongside offering good value makes this automotive stock a good pick to buy in for 2021.
2. JetBlue Airways Corp (JBLU)
It is only a matter of time before the world once again allows international travel to operate, causing the trend in the market to focus on the aviation sector. This is leaving JetBlue (JBLU) who is also partnered with American Airlines (AAL) being one aviation stock that could finally see some positive results in 2021 and beyond.
As the COVID-19 pandemic has arguably hit the aviation industry the hardest over the year, JBLU has managed to use their time wisely and reconstruct some of its plans in order to produce an effective lower-cost business model for consumers.
The airline stock does hold a high debt-to-cap ratio of 57% due to slow and halted operations over the past 14 months leading the company to protect itself within challenging times by pumping money into the business to maintain its strong financial position in the long-term outlook. Despite this hefty increase, JBLU is sitting in a top position when it comes to its balance sheet, in some cases way ahead of its fellow competitors and finished 2019 with $3.1 billion in cash and cash equivalents alone.
Despite this slight negative amongst many positives, another piece of news aside from international travel soon again becoming operational, its JetBlue’s new travel site that is causing a stir.
The company is in the midst of opening its Paisley travel website that enables JetBlue customers to book it all under one roof, from hotels and restaurants to theme parks and more. This new avenue has created efficiency along with having great growth prospects as the service is also looking to add home rentals down the line similar to the leading stock Airbnb (ABNB).
From the back of JBLU announcing this exciting avenue, the stock has witnessed a 4.2% increase within its share price where today it stands above the $20 mark at $21.05.
Then take a look at what analysts think about the stock.
The leading investment bank Oppenheimer and Raymond James Investment Services have both recently upgraded JBLU stock. Predicting the stock to outperform following on from its recent announcement, whilst going hand-in-hand with the market trends and the stock becoming more cost-effective leading to strong consumer demand within the travel industry.
Both analysts have given the stock a price target of $24, a 13% increase from today's price.
For the company’s new and more improved low-cost business model, its reliable consumer demand and the stocks potential to be once again sitting in an even brighter financial position, all hold solid makings for this aviation stock.
JetBlue stock that could appreciate well over the coming years in both the short and long-term outlook as the world opens up once again.
3. Global Net Lease Inc (GNL)
Global Net Lease Inc (GNL) is a real estate investment trust that places its main focus on acquiring and managing a globally diversified portfolio mainly within commercial properties.
With the company’s strategic investment management plan, the stock has managed to obtain a diverse real estate portfolio operating from and within some of the most successful countries in the world including USA, Germany and the UK.
The main points for GNL to conduct such business is to help business owners and occupants around the globe fulfil what they wish. Alongside, the stocks main priorities to manage and provide capital protection, bring regular cash flow, along with bringing in capital over the long-term period to its shareholders as the stocks continues with its growth plans.
In recent days the stock is growing in the right direction as the company declared a dividend of $0.40 per common share that will be paid quarterly to investors or holding a price of $1.60 per share annually.
Then in an issued report on Tuesday, it was confirmed GNL managed to collect 99% of all original cash rental due for Q1, along with confirming further acquiring plans as the company currently has six new properties in the works calculating to a total of approximately $258 million.
When you take these new factors into consideration of the bigger image for this stock, there is no wonder analysts are rating this stock a ‘Buy’ and holding a current Zacks Rank #2 Buy rating with holding a grade B for value.
The company’s strength through 2020 was clear as Revenue from tenants grew by 7.8% to $330.1 million YoY with Q4 Revenue from tenants adding an increase of 13.5% to $87 million. Net operating income grew by 7.1% YoY to $297 million, alongside GNL furtherly enhanced its diverse portfolio with lease extensions, strong expanding acquiring plans and extending new assets globally.
Over the past week GNL shares have now gained by just above 5% from where it closed on March 31st at $18.06, making it almost 7 consecutive days in a row that the stock has gained.
For both the long-term and the short-term, this stock looks as though it has the potential to archive great gains, starting over the coming months and could look to gain well over the coming years as a revenue forecast has been given for the stock with a potential increase of 26.54% to $417.7 million over the next three years.
If you are looking to add diversity to your collection along with a safety net of investing indirectly into the real estate world, then GNL is a stock that you should strongly consider to buy into for 2021.
4. Albertsons Companies Inc (ACI)
The American grocery and pharmacy company Albertsons Companies Inc (ACI) has become a bigger and better company today within the US than where it sat just over a year ago pre-pandemic.
As households moved into remote working conditions and restrictive environments were imposed across the globe, this led online shopping to become the go-to for many households causing ACI stock to deliver to new highs within the US. Especially within its digital sales segment which has been forecast that it could potentially increase by a further 20% over 2021.
On this note, the stock hit the headlines again in recent days this time with its partnership with the leading online tech giant Google. The pair are looking to create and deliver a more interactive and convenient shopping experience for consumers which has been given the name ‘The Future of Grocery Shopping’. This news together with the company's predicted forecast within its digital sales segment are looking even more achievable.
The stock managed to gain a whopping 225% rise in digital sales growth at the end of December 2020, alongside 12.3% identical sales growth as was confirmed within the companies Q3 report issued on January 12th 2021. Adjusted EBITDA increased by 53% to $968 million compared to Q3 2019.
In the yearly outlook, the stock reported that it had gained a Revenue of $53.9 billion within its 40 week period, up by $6.9 billion YoY. Adjusted EBITDA was $3,607 million or 6.7% sales in the first 40 weeks compared to 4.4% sales in 2019. All of these strong outcomes led to the grocery stock to gain by almost 20% over the past year.
On the back of such highlights, ACI stock is set to grow in revenue in 2021 by just under 12% whilst the company’s earnings per share (EPS) growth rate is due to grow by around 19% over the coming five-year outlook. Zacks Investment Research has also given the stock an expected positive EPS growth rate of 11.98% in the 3-5 year outlook.
The stock has been analysed by 7 Wall Street analysts including Morgan Stanley and Deutsche Bank who have both given the stock a ‘Buy’ rating with an average price target of $21 and a low estimate price target of $13.
Albertsons stock holds great value alongside its growth capabilities including its new partnership with Google, leaving this grocery stock one that investors may wish to seek to invest in as it is looking set to continue and strengthen its rise in 2021.
5. IMAX Corp (IMAX)
As the world moves closer to reaching normality the likes of cinemas will no doubt be welcomed with open arms by many, which is where IMAX Corp (IMAX) will see a rise once again.
Streaming platforms have been a saviour for entertainment lovers over the past year but nothing feels quite the same as watching a new release in the movie theatre. And if the latest release of the movie ‘Godzilla vs King Kong’ is anything to go by, cinema brands are in for a killing when able to increase operation worldwide.
In light of the anticipated release of the new movie IMAX share price rose by just above 5% from the start of the month, with the stock sitting on the market today at $21.75 leading shares to be up 22% over the year.
Then take a look at how well the monster hit movie did over recent days as it pulled in over $4.5 million worldwide making it IMAX’s biggest opening weekend in over a year. Over 1,000 domestic IMAX shows were also sold out over a five-day opening event with some cinema firms operating across the U.S at just 25% capacity yet still accumulated to 9.3% of the total.
Together with Warner Bros, who is owned by AT&T (T), the film has made an impressive $13 million worldwide over its opening weekend.
Despite the impact that COVID-19 has had on the stock, IMAX is the world's only global entertainment platform and is leading ahead within the Asian sector. Both China and Japan confirmed that audience levels almost reached pre-pandemic levels encouraging demands for the rest of the world.
On the back of this positive news, IMAX confirmed a positive Adjusted EBITDA per Credit Facility and free cash flow for Q4 resulting in a yearly figure including revenue and box office of $317 million in cash and cash equivalents up from $305 million in Q3.
Although yearly revenue is down by 65% from 2019 brought on through the pandemic, analysts believe that this stock will rise significantly when it is able to so. The stock holds a ‘Strong Buy’ rating and has been given an average price target of $24.21 giving the stock a potential upside of 11.31% with a high estimate of $28 and a low estimate of $17.00.
Although IMAX still has a long way to go, the stock has strong potential in the long-term as the company continues its growth within its global network along with adding strong consumer demand to the stocks The IMAX Experience and more. This will no doubt help to push IMAX stock forward to reach its forecast revenue prediction of $379 million in the next three year outlook, beating both the industry and market averages.
6. Aphria Inc (APHA)
The Canadian cannabis company that could see good long-term upside is Aphria Inc (APHA).
Despite slightly mixed signals over the past couple of months with the cannabis index down 38% from its 2021 highs, the industry will no doubt take a solid footing in the coming months looking towards more normal times.
This is one reason that APHA stock declined in share price over recent weeks to where the stock sits today at $16.43 almost -40% down from its February high of $26.30.
In 2020 cannabis sales soared across the U.S as more U.S states confirmed legislation for both recreational and medical use with New York being the latest state to legalise marijuana. All of this positivity was contributed heavily with President Joe Biden becoming America's new leader who is in support of legalising cannabis usage.
Providing this APHA is one cannabis stock to have in your collection above other cannabis stocks for a number of reasons.
One of the first reasons is its merger with Tilray Inc (TLRY). This merger now makes Aphria the largest cannabis company based on sales and revenue in the world, pushing APHA into further strong avenues, even strengthening within its European-medical cannabis markets amongst others.
The second reason is that Aphria has managed to maintain a steady revenue growth over the years. As the stock reported an increase of 33% in revenue to $160 million from Q2 2020 and an increase of 99% in net cannabis revenue to $67.9 million.
A record Adjusted EBITDA of $12.6 million makes the stocks seventh consecutive quarter being in the positive.
Aphria stock currently holds a consensus ‘Buy’ rating given by 9 Wall Street analysts with an average price target of $16.65, a 2.28% increase from today’s price with a high estimate of $25 and a low estimate of $8.69.
If you are an investor who is looking to enter the exciting cannabis industry or looking to add more diversity to your collection, Aphria Inc (APHA) is a great cannabis stock pick.
7. Aurora Cannabis Inc (ACB)
The last stock to come on the list is Aurora Cannabis Inc (ACB).
As of writing, this report ACB stock has declined by 5.6%. This could be in light of Vice President Kamala Harris comments stating that the Biden administration has been focusing more on other pressing priorities than that of the legalisation of marijuana. This comment could have sparked investors to assume that the cannabis industry is not going to be heading anywhere soon.
But in the bigger image, this doesn’t mean anything significant, it just confirms how volatile this industry can be with its highs and lows.
Having said that Aurora Cannabis Inc who has undergone a cost-saving strategic plan since being taken over by new CEO Miguel Martin, has seen improvements within its latest Q2 report.
Total revenue increased by 23% to CA 67.6 million and Total medical cannabis net revenue increased by 42% to CA 39 million. But more impressively International medical cannabis sales were the main winner increasing by 562% YoY confirming strong worldwide cannabis demand.
Aside from this news, ACB is still yet to deliver a positive Adjusted EBITDA but managed to decrease it hugely from CA 69.8 million to CA 16.8 million thanks to the new business transformation plan in play.
Based on 12 analysts covering the stock it has been given an average price target of $9.42 with a high estimate of $14 and a low estimate of $6.
As time moves on for ACB stock and for the new CEO’s strategic plans to be firmly and fully operational, this should tie in nicely with the stock pulling in good results over the years in this blossoming industry.
Features To Look For In Stocks Under $20
Before looking to invest in $20 stocks, whether it be the chosen 7 stock picks from this list or any additional or further $20 stocks of interest, it is strongly advised to look over some key features before getting carried away with investing. As ultimately it is these key features that will determine if a stock has the potential to be successful.
1. Positive financials
The first and one of the most vital features when looking into stocks at $20 or under is to take a good look at a company’s financial positioning.
Key features such as a company’s revenue alongside looking at a stocks assets to liabilities will give you a clearer indication of where the stock is heading and how comfortable it is sitting.
On that note, it’s also advised to stick to stocks that show a good and improving financial status, rather than to opt for companies that are evidencing challenges looking ahead.
If a company is a dividend payer, take a look at its dividend yield whilst taking into consideration if it is up to date with its dividend payments.
Alternatively, looking at a company’s earnings per share (EPS) can also be a feature for investors, especially if the stock has great potential and it has not yet reflected within its current EPS status.
2. Demand in products and services
It comes without saying the more a product or service is in demand the more a company will grow. In order for a company to achieve success, it has to have clear and visible products on the market or eagerly anticipated products that are in demand before they come to the market in order to achieve earnings growth.
3. Analysts ratings
$20 and under stocks are popular amongst investors for many reasons and one being that they tend to meet short-term debts easily compared to stocks that hold low liquidity.
For that reason, professional analysts tend to dig deeper and analyze these $20 stocks well in order to give the true understanding of what a company is capable of, based on current and previous results and confirming if a stock is a good investment.
You may find that when a stock gets a good consensus rating from a reputable firm or analyst, investors will then consider buying in on a stock based on their professional guidance. This is a strong feature for many investors which will then witness a company’s share price rise.
Read Also: 7 Tips On When To Buy A Stock And When To Sell A Stock
Are Stocks $20 And Under Worth Investing In?
The short and sweet answer to this question is yes, of course, these $20 stocks and under are worth investing in.
Investing in the right company’s that have evidenced their good financial positioning along with visible growth prospects, can be wonderful additions to your portfolio. As these companies seek to grow stronger earnings over time they are great stocks to keep hold for the long term.
Having said that, there are also not so good $20 and under stocks on the market that you have to do your research into. On the surface, these stocks may look shiny but when you dig further, you may potentially see that these stocks are almost hitting rock-bottom and have no chance of looking to come out of their current position.
This is why it pays to conduct as much research as possible on your chosen stocks before jumping head first into investing in them.
When choosing your stocks of choice it may be wise to invest in a stock that has a strong product or service demand that is not holding an expensive share price.
A prime example, in this case, could be Ford Motors (F) with its new EV’s creations anticipated to make a strong impact on the market yet sits at a good and stable share price.
Additionally, because these stocks sit at attractive prices if you decide to take a larger position in a stock or depending on what your preferred trading style is, you may wish to choose stocks that will still be able to maintain their value by being bought and sold at reasonable prices, in financial terms stocks that have good market liquidity.
Check Out: 10 Stocks That Are Screaming Buys Right Now
Overview: 7 Best Stocks $20 And Under
And there you have 7 stocks $20 and under that are sitting in attractive positions today, offering great value along with strong growth opportunities ahead.
All of the chosen stocks to make this list offer unique products and services that are already slotting nicely into their field and being prominent features.
And an additional benefit that most of these stocks hold is that they can adapt well to both long-term or short-term trading strategies, although some are designed more for the long-term outlook as they aim to make and receive bigger gains over time.
If you are a beginner investor and looking for a solid investment Ford Corp (F) is looking like a strong stock to invest in. The fast push into electronic motors is the way forward and Ford is looking to hold their hands firmly in the mix, alongside holding a good financial position.
If you are an experienced investor who is seeking a new challenge the cannabis industry has to take the lead as a good investment. Both Aphria Inc and Aurora Cannabis Inc offer equally good value with both being big names with the Canadian cannabis markets. If we were to choose one it would have to be Aphria Inc for its stronger position both in the market and financially yet has more clearer avenues in order to establish further growth plans.
Before investing in any investment it is always wise to conduct additional research into your chosen stocks as all investments come with their own risk elements.
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