When investment resources talk about stocks to buy under $20, what are they really saying? Anybody can filter out equities based on their price per share. However, so much more goes into a proper analysis. Often times, the actual price is the last thing that seasoned investors consider because of one harsh reality: price alone doesn’t really tell us much.
Instead, when you’re looking for stocks to buy under $20, it goes without saying that you’re looking for ideas that can rise to $30 per share, let’s say, or even higher. Of course, if you randomly just pick out equities based on their price, your chance of finding viable opportunities likely won’t be much greater than 50/50. If you’re really unlucky, the win rate could be worse.
I’m not going to waste your time. All these ideas benefit from strong buy consensus ratings from Wall Street analysts. And every one is tied to a broader fundamental narrative that could potentially lift valuations for the long run. With that, below are genuinely good deals among stocks to buy under $20.
Universal Technical Institute (UTI)
Based in Phoenix, Arizona, Universal Technical Institute (NYSE:UTI) falls under the education and training services sector. Per its public profile, Universal provides transportation, skilled trades and healthcare education programs. Its main product offering is its technical training curriculum focused on the personal mobility market. Fundamentally, UTI stock is a relevant entity as blue-collar work is in high demand and the supply of qualified workers is alarmingly low.
For people willing to get their hands dirty, UTI brings ample opportunities. As stated earlier, people who are good with their hands are in high demand. More importantly, the company educates people in trades that will (probably) never be replaced by artificial intelligence. Plus, it’s difficult to outsource a plumbing or electrician job.
Financially, the company is also killing it. In the past four quarters, Universal generated an average earnings per share of nine cents. During this time, analysts anticipated a print of four cents. Therefore, the earnings surprise clocked in at 108.75%.
For fiscal 2024, experts believe that sales may hit $724.46 million. That’s up 19.3% from the prior year’s haul of $607.41 million. And fiscal 2025 could see sales of $798.41 million, up 10.2%. It’s one of the stocks to buy under $20.
AST SpaceMobile (ASTS)
Headquartered in Midland, Texas, AST SpaceMobile (NASDAQ:ASTS) technically falls under the communication equipment industry. However, arguably most investors know ASTS stock as a key player in the burgeoning space economy. With its subsidiaries, AST develops and provides access to space-based cellular broadband networks for smartphones. This innovation is notable for providing services to users who are out of terrestrial cellular coverage.
Fundamentally, ASTS may rise on the proliferation of digital equity; that is, the company could help connect people and communities in difficult to reach areas. In this way, it may connect more people to the internet and other digitalized technologies. It’s one of the most promising enterprises. However, because of this profile, it’s a high-risk, high-reward business.
Currently, the company isn’t profitable. In the trailing 12 months (TTM), AST posted revenue of only $500,000. That’s hardly a drop in the bucket. However, by the end of this year, analysts project that sales could jump to $50.67 million.
Even better, the top line could rise to $264.51 million in fiscal 2025. And the most optimistic view calls for $611.4 million. If you can handle the potential volatility, it’s one of the stocks to buy under $20.
Crescent Energy (CRGY)
Headquartered in Houston, Texas, Crescent Energy (NYSE:CRGY) falls under the oil and gas exploration and production industry. Known as the upstream component of the hydrocarbon value chain, Crescent already enjoys a relevant business. Even with the push toward electrification, the world continues to run on oil. It may do so for a longer-than-expected time.
However, another element that can boost CRGY stock is geopolitics. With tensions and flashpoints rising in multiple parts of the world, the threat of global oil supply chain disruptions looms large. Western nations in particular will need access to more reliable sources of fossil fuels. Downwind, that could easily benefit an upstream specialist like Crescent.
To be fair, Crescent hasn’t printed the most encouraging financial performance metrics. In the past four quarters, it generated an average EPS of 13 cents. This missed the consensus view of 19 cents. However, revenue has been growing steadily.
By the end of the year, analysts believe sales can hit $2.96 billion, up 24.2% from last year. By 2025, the top line could jump 30.5% to $3.86 billion. Therefore, it’s an enticing idea among stocks to buy under $20.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.