Cheap stocks are all relative when it comes to investing. For instance, auto parts store AutoZone Inc. (ticker: AZO) trades for a staggering $2,300 per share. But five years ago, when the stock was “only” $800 a pop, AZO was in fact quite the bargain buy.
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It’s the percentage gains that matter, not the sticker price. But that said, many small-time investors may not be comfortable in stocks like AutoZone because they don’t have the cash to buy more than a single share or build a well-rounded portfolio where they aren’t wholly reliant on this single position.
The following cheap stocks all trade for $20 or less for a single share, making them accessible and easy to buy in round lots. They also all have impressive returns of 50% or more year to date in 2023. But remember that past performance is no guarantee of future profits, and stocks that are cheap can always get cheaper if things go south.
You should always do your own research before making a trade, but if you’re looking for the best cheap stocks to buy under $20, then here’s a list of some names to start with:
| Stock | Year-to-date return as of June 7 |
| Krispy Kreme Inc. (ticker: DNUT) | 50.3% |
| Carnival Corp. (CCL) | 61.7% |
| LegalZoom.com Inc. (LZ) | 61.1% |
| BlackBerry Ltd. (BB) | 58.9% |
| SoFi Technologies Inc. (SOFI) | 67.9% |
| Fastly Inc. (FSLY) | 101.5% |
| Palantir Technologies Inc. (PLTR) | 128.8% |
| ImmunoGen Inc. (IMGN) | 196.6% |
| Carvana Co. (CVNA) | 227.6% |
Krispy Kreme Inc. (DNUT)
After a fall from grace a decade or so ago thanks to overexpansion and a war on carbs in American diets, DNUT is back after a 2021 initial public offering, or IPO — and shares look to be hot and ready for a run in 2023, based on recent performance. Sales should grow at a roughly 10% rate this fiscal year and next, and DNUT is comfortably profitable as it manages existing restaurants closely rather than aims to grow via aggressive geographic expansion as in prior years.
YTD return: 50.3%
Carnival Corp. (CCL)
Gutted by the pandemic-related shutdown of the travel industry, cruise ship operator Carnival is back on track and hoping to stage a return to the spotlight. The company is projecting a return to profitability next year, riding what is expected to be a massive jump of about 80% in revenue this year and double-digit sales growth again in fiscal 2024. There’s obviously a lot that can go wrong between now and then, but investors like what they see and have set sail with this stock to significant outperformance this year.
YTD return: 61.7%
LegalZoom.com Inc. (LZ)
LegalZoom is probably familiar to many consumers out there, thanks to its popular online platform for legal and compliance solutions. Whether you’re creating a will or looking to incorporate a home business, LZ offers affordable templates that most Americans can use at a fraction of what their local lawyers charge. The company is consistently profitable and growing, with its subscription-based services an important part of the long-term growth story. Shares are still down significantly from highs a few years ago, but they have put up an impressive return since Jan. 1 — and are still under $13 a share even after this run.
YTD return: 61.1%
BlackBerry Ltd. (BB)
Yes, the old mobile device company BlackBerry is still around — just producing software instead of hardware. This cheap stock isn’t particularly glamorous, but it is quite consistent thanks to its core business around security. In fact, it forecast as much as 50% sales growth in its upcoming fiscal year thanks to the consistent expansion of its cybersecurity business. This is definitely a cheap stock, trading at just under $6 a share at present, but it’s also one that has handily outperformed the market in 2023.
YTD return: 58.9%
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SoFi Technologies Inc. (SOFI)
SoFi provides various digital financial services, including investing tools and lending products such as personal loans, student loans, home loans and related services. Beyond its online-first model that carves out the overhead of brick-and-mortar bank branches, the company also operates a technology platform called Galileo that offers services to institutions ranging from digital payments to e-commerce functionality and other related APIs and tools. Though less than $10 a share and quite volatile, the company has been on a big run lately as it looks to record more than 20% revenue growth both this fiscal year and next year.
YTD return: 67.9%
Fastly Inc. (FSLY)
Cloud computing platform Fastly “extends” services for customers to help speed up and optimize the delivery of web content, applications and traffic. It also offers an array of productivity and security tools to help companies better use the digital tools that are increasingly important to all manner of enterprises. The company continues to expand rapidly, experiencing double-digit revenue growth like clockwork each quarter, and some analysts are projecting it will move into consistent profitability next fiscal year.
YTD return: 101.5%
Palantir Technologies Inc. (PLTR)
Palantir gained a lot of attention when it went public through a “direct listing” in 2020 that sidestepped the traditional IPO path. Born out of a data analytics platform created in response to the terrorist attacks of 9/11, its Gotham “big data” platform has been widely used by the U.S. government over the last two decades to help provide actionable intelligence reports out of the sea of information that exists in the modern age. After a recent $460 million U.S. Special Operations Command contract was awarded, PLTR soared to another high and remains among the best performers of 2023 despite its currently cheap stock price of about $15 per share.
YTD return: 128.8%
ImmunoGen Inc. (IMGN)
Biotechnology company ImmunoGen is focused on immunotherapies for cancer patients. In early June, its new Elahere treatment for ovarian cancer saw favorable results in its recent phase 3 trial. Shares skyrocketed higher immediately after the news in early May, but have continued to go on and set new 52-week highs consistently since then. Despite this run, the biotech stock is still well under $20 per share for those who want to invest in the long-term potential of its product pipeline.
YTD return: 196.6%
Carvana Co. (CVNA)
After crashing dramatically from its 2021 highs, digital auto sales platform Carvana has been on a red-hot run lately, thanks to a credit upgrade and positive signs that the company is back on the right track — and not doomed for bankruptcy as once feared. The stock is among one of the best performers on Wall Street this year, and has finally reclaimed the $15 price where its shares debuted back in its 2017 IPO. It’s still unprofitable and still quite volatile, but investors who bought in at the start of the year have been richly rewarded by this cheap stock.
YTD return: 227.6%
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9 Best Cheap Stocks to Buy Under $20 originally appeared on usnews.com
