Stocks Under 20 Dollars To Buy
The technology sector has had a tough time this year. Some of the market's favorite names in 2021 have imploded and come within shouting distance of penny stock status. While some of these tech stocks were riding the tide and will never see new highs, others have been unfairly thrown out with the rest and could eventually comeback for a rebound.
stocks under 20 dollars to buy
Several stocks trading below $20 per share have long-term potential to grow a relatively small investment into a sizable position. These five companies are less proven than your run-of-the-mill blue chip stocks, but could eventually become huge winners. Bold investors can consider these tech stocks as speculative holdings in a diversified portfolio.
Most stocks that make it big start small. Even a mega-cap stock like Tesla, which is changing hands at around $740 a share right now, was trading under $40 apiece barely three years ago.
Of course, it's not easy to become a Tesla, as it's been an exceptional growth stock. Yet if you can find promising stocks while they're still trading in low double-digits, chances are you could make good money in the long term. For example, here are three stocks trading under $20 right now that look like promising buys for the long term.
It's been a choppy ride for solar stocks so far this year as investors dumped shares on fears of rising interest rates and their impact on the cost of solar projects. SunPower (SPWR 4.45%) has been no different.
Those are encouraging numbers. With SunPower's financials also looking stronger than it did a few years ago, this is among the few stocks that should interest you if you're bullish on clean energy and solar, in particular.
Kinder Morgan (KMI 1.21%) stock is trading just under $20 a share right now, but it's still nowhere close to the high premium it was commanding in 2015. That was also the year when Kinder Morgan slashed its dividend, as debt weighed heavily on the company and its shares plunged.
The best part is that you needn't worry much about the potential volatility in natural gas prices, since Kinder Morgan generates the bulk of its cash flow under long-term contracts. That ensures a lot of stability and predictability and is primarily why the company can pay higher dividends year after year.
Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Kinder Morgan and Tesla. The Motley Fool recommends First Solar. The Motley Fool has a disclosure policy.
The tightening of the money supply has led to a tightening of the overall economy. That means that consumers and investors have less cash and capital to work with. In turn, that means that investors might logically look to shares that trade at lower prices. In the case of this article, we are looking at the best stocks under $10.
Solid, expanding institutional buying among fundamentally strong companies with double-, triple- and even quadruple digit share prices makes up the I in CAN SLIM, IBD's seven-factor paradigm of successful investing in growth stocks.
IBD Stock Screener filters cheap stocks that not only trade at $10 or less per share. Some also carry many of the key fundamental, technical and fund ownership quality traits routinely seen among the greatest stock market winners.
Decades ago, William O'Neil, founder and long-time chairman of IBD, preferred to add 1/8th of a point, equivalent to 12.5 cents, to the key resistance level within a base to determine if a stock is in fact breaking out. Before the stock exchanges moved to decimalization of price quotes, stock prices traded in fractions of 1/2, 1/4, 1/8, 1/16, even 1/32nds of a dollar.
In the week ended March 3, ARDX ranked in the top 10 among stocks sold short and trading under $10 a share on trading platform TradeZero; customers sold short a total 1,324 shares at an average 3.75 per share.
LSI Industries (LYTS) continues to excel since the summer of last year. However, the stock felt the market's selling heat on March 10, falling 10% in heavy volume. Shares also undercut the 50-day moving average for the first time in more than four months.
In late February, the stock cracked through the 15 price level for the first time since early 2008. Lately, it's getting some pushback. Yet LYTS has certainly acted as one of the best stocks since making IBD Stock Screener for companies with a top Composite Rating and trading under 10 a share.
Arcos Dorados (ARCO) has joined the IBD Screener as a top Composite Rating scorer among companies trading under 10 a share. The stock rose for a fourth straight session Thursday but needs to rebound further after a sharp slide that started on Jan. 26. A 4.9% gain for the week finally ended a five-week slide.
In the meantime, event-organizing platform Eventbrite (EB) and Chinese video streaming service iQiyi (IQ) recently made the IBD Stock Screener for top stocks in the Composite Rating and trading under 10 a share. Both show wonderful growth in the top line in the past quarter or two and are reaping big profits. But IQ is deliver better stock action lately.
Orange has gone through some rebranding over the years but has never lost its focus in telecom. Share prices have been down of late, primarily due to changing regulations in Europe. With those under wraps, Orange has started to see positive momentum once again.
Buying stocks under $20 is a great way to get your portfolio started. While these stocks may be affordable, they can still offer plenty of potential for future growth. This is especially true for businesses that are snowballing and expanding to new markets.
It is possible to find stocks in the $10 to $20 range on the OTC market, but these tickers are generally more volatile and harder to predict. Instead, invest in stocks with more stability on major exchanges like NASDAQ and the NYSE.
Webull, on the other hand, is more complex and best reserved for traders with more experience. In either case, these platforms can help lead you to the best stocks under $20 that can reward you with some nice gains.
The best way for beginners to buy stocks is to find a reputable online broker and open an account. Anyone new to the stock market can jump on a platform like Robinhood and start trading fast. Robinhood, in particular, is designed to be simple to use and easy to understand.
When seeking out the best stocks to buy now, investors will need to be brave and patient in regard to timing, as well as agile as the stock market eventually transitions from bear market to bull market. Go ahead and add resolute to the character traits you'll need this year, because many market strategists say you can't get from one market to the other without going through a recession first.
Given the uncertain, sometimes roiling backdrop for stocks, where should investors look when seeking out the best stocks to buy now? A popular piece of advice among Wall Street strategists now is to resist the bargain-basement appeal of the most beaten-up stocks and focus instead on high-quality shares. "Investors should avoid volatile names and be cautious on both deep-value and unprofitable growth companies," says Koesterich. "Instead, emphasize quality with a focus on earnings consistency and good profitability."
Now may be a good time to tilt toward value-oriented companies and small-cap stocks, both longtime underperformers that are showing signs of new life. Over the past five years, for example, the S&P 500 Value Index (opens in new tab) has returned 6.2% annualized, compared with 9.1% for the S&P 500 Growth Index (opens in new tab). Through early 2023, value has outperformed growth, with a 4.1% return compared to growth's 3.8% gain. "We would stick with value. These cycles last a while," says Ryan Detrick, chief market strategist at money management firm Carson Group (opens in new tab). Sectors typically grouped in the value style include energy, financials, industrials and materials.
So, with all of this in mind, here are 12 of the best stocks to buy now. The names featured here vary by size and industry and are not meant to compose a diversified portfolio. But all, for one reason or another, are well positioned to benefit from a transition to a bull market from a bear market in 2023.
Don't ignore the tenets of diversification and shun tech or the growthier side of the market completely when adjusting your portfolio to include the best stocks to buy now. Instead, take a barbell approach, says Tony DeSpirito, a managing director and portfolio manager at BlackRock (opens in new tab). This will allow you to scoop up value-focused shares at historically attractive relative price-to-earnings ratios (P/Es) and high-growth stocks at valuations that have come down from the stratosphere and are now at normal, if not yet underpriced, levels.
Take Advanced Micro Devices (AMD (opens in new tab), $76.61), a leading semiconductor manufacturer. Analysts have mixed ratings on one of Wall Street's best semiconductor stocks in part because an economic slowdown and negative investor sentiment are near-term obstacles.
Matador Resources (MTDR (opens in new tab), $52.38) is an oil and gas exploration and production company that has risen alongside its fellow energy stocks over the last 12 months. Specifically, MTDR stock is up more than 20% year-over-year.
Even with its impressive growth on the charts, MTDR is one of best values on this list of the best stocks to buy now. Shares are currently trading at just 5.1 times forward earnings, well below Matador's five-year average of 11.2.
Investors seeking out the best stocks to buy now might consider holding for longer than one year: Keith says she sees "significant market-share opportunity" for Workday, and over the next three years, the stock's potential reward outweighs the risk.
Why is Merck (MRK (opens in new tab), $109.16) on this list of the best stocks to buy now? The pharmaceutical giant is known for its high returns over the past decade. Analysts are upbeat toward MRK, too, as evidenced by a consensus rating of Buy. Of the 27 analysts that follow Merck tracked by S&P Global Market Intelligence, 13 say it's a Strong Buy, seven have it a Buy, six call it a Hold and one rates it at Sell. 041b061a72