Cheap stocks are attractive to many investors who have modest means. After all, the most expensive stocks, including Chipotle Mexican Grill Inc. (ticker: CMG), Autozone Inc. (AZO) and Booking Holdings Inc. (BKNG), can trade for more than $2,000 for a single share.
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Unless you want to put big bucks behind several positions, it’s hard to build a balanced portfolio with share prices that high. Similarly, investors who prefer to buy in round lots of large numbers have to have a serious chunk of change to buy stocks like these.
If you’re looking for cheap stocks to buy under $20, then this list will provide you with a few good options. All have rallied strongly lately and are entering 2024 with strong momentum — and if that keeps up, the shares may not be cheap for long.
| Cheap Stock | Price-to-Book Ratio* |
| Blue Owl Capital Inc. (OWL) | 5.2 |
| First Advantage Corp. (FA) | 2.7 |
| Gap Inc. (GPS) | 3 |
| Hims & Hers Health Inc. (HIMS) | 6.4 |
| Janus International Group Inc. (JBI) | 4.6 |
| Macerich Co. (MAC) | 1.5 |
| Pactiv Evergreen Inc. (PTVE) | 2 |
| Uranium Energy Corp. (UEC) | 4.5 |
| Zeta Global Holdings Corp. (ZETA) | 14.6 |
*Price-to-book ratio is a measure of the company’s market valuation relative to its book value, or assets minus liabilities.
Blue Owl Capital Inc. (OWL)
Investment firm Blue Owl is not as large or as well-known as other financial stocks on Wall Street. But it’s no slouch, with a market capitalization of more than $23 billion and total assets under management topping $165 billion. Its specialties include providing financing to middle market companies, “opportunistic lending” to turnarounds or takeover targets, and alternative investments such as real estate or even minority investments in professional sports teams. OWL shares are up about 30% in the past 12 months, trading at a new 52-week high as the firm continues to bank on profitable investment strategies in the new year.
First Advantage Corp. (FA)
Safety and compliance firm First Advantage makes its money by performing criminal background checks for employers and landlords, providing biometric fraud detection, and other investigative research services. With an in-demand market for rentals and a better-than-expected job market, FA has been busy processing requests across all business lines lately. The stock is up about 36% in the last 12 months, and it provides an interesting twist on the cyclical uptrend for the broader economy in a cheap stock under $20 a share.
Gap Inc. (GPS)
The corporate parent that also owns Old Navy, Banana Republic and Athleta as well as its namesake stores, Gap is a retail giant that has managed to outperform its peers lately. That’s thanks to an “omnichannel” approach that effectively marries brick-and-mortar stores with e-commerce assets. In November, Gap wowed Wall Street as it topped estimates on both revenue and profits, reinforcing its guidance even as it lowered projected capital investments. The stock has surged more than 45% in the last 12 months, and as it approaches another important earnings date in March, this stock may not stay under $20 a share for much longer.
Hims & Hers Health Inc. (HIMS)
Hims & Hers is a unique small-cap company that operates a telehealth platform, connecting individuals with licensed health care professionals. It offers a range of health and wellness services, including consultation on prescription medications and then recurring fulfillment on those drugs. The company also offers non-prescription products such as vitamin C, melatonin, skin care and sexual health products. The company saw a staggering 65% surge in revenue in fiscal 2023, and it is projecting nearly 30% growth the next fiscal year, proving this is a cheap stock that has clear growth potential.
Janus International Group Inc. (JBI)
There are plenty of industrial stocks with a weird specialty, but Janus is one of the most hyper-specific firms out there. This $2 billion company is a leader in the production of roll-up doors, with a particular focus on those used in self-storage units. The good thing about being a small and focused company is that if you do your one thing well, you can offer reliable results to shareholders — and that’s what JBI has been doing lately. The stock is up more than 30% in the last 12 months, and is trading at three-year highs.
[7 Best Small-Cap Growth Stocks to Buy]
Macerich Co. (MAC)
Structured as a REIT, or real estate investment trust, Macerich owns and operates high-quality retail properties in major U.S. markets ranging from San Francisco to New York City. All told, Macerich currently owns 47 million square feet of real estate in 44 “town center” style areas. Rising interest rates have weighed on many REITs lately, as this naturally increases borrowing costs for capital-intensive businesses in the sector, and Macerich stock lost more than half its value between late 2021 and late 2022 as a result. But the company has recently stabilized and rallied nicely over the last three months, tacking on more than 60% to enter 2024 with a strong wind at its back.
Pactiv Evergreen Inc. (PTVE)
Pactiv is a packaging company that provides everything from takeout food containers, hot and cold cups, cartons for fresh refrigerated beverage products like milk, and all related systems including filling machines. Thanks to a better-than-expected economy across 2022 and 2023, Pactiv’s customers have been ordering briskly and lifting shares as a result. The stock has more than doubled from its 2023 lows but is still affordable on a per-share basis for investors who want to carve out a position in PTVE stock.
Uranium Energy Corp. (UEC)
Uranium Energy is a roughly $3 billion producer of — you guessed it — uranium. Nuclear energy is again coming into favor as the quest to find alternatives to fossil fuels makes the chemical element more attractive. Demand has been impressive, driving big price increases lately as uranium has surged from the low $30s per pound in 2019 to more than $100 per pound as of January. The energy sector can be volatile, as commodity prices drive profitability and macroeconomic concerns hold sway over demand trends. But right now UEC is definitely on the rise, with shares up nearly 100% in the last 12 months and currently trading near the highest levels in a decade.
Zeta Global Holdings Corp. (ZETA)
A data-driven consumer intelligence and marketing automation software firm, Zeta tries to help businesses predict consumer intent — and put the right products in front of them at the right price. Maximizing the return for businesses is critical right now, and Zeta is landing new customers at a good clip thanks to its successful suite of products. Revenue jumped more than 22% last year and is on track for another 17% increase in fiscal 2024. Shares have been rallying too, up more than 20% in the last three months and starting off 2024 with strong momentum.
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9 Best Cheap Stocks to Buy Under $20 originally appeared on usnews.com
Update 02/09/24: This story was previously published at an earlier date and has been updated with new information.
