Are you looking for the best stocks under $20 to buy with massive high potential? Finding great stocks to buy for cheap prices can be tricky during a bull market when stocks trade at sky high valuations.
Luckily, there are a lot of small caps companies with strong growth prospects under the $20 price tag. Many of these companies operate in new industries like EVs or just went public after scaling its business.
Here’s a list of my favorite stock recommendations for high growth investors.
Table of Contents
- Best Stocks Under $20
- Best Online Brokers for Stocks Under $20
- Stocks Under $20 FAQ
Best Stocks Under $20
1. SoFI (Nasdaq: SOFI)
SoFI is an integrated financial platform that combines social media interaction & finance all in one.
The company went public via a SPAC but SOFI stock got crushed after the merger completed.
I like to think of SoFI as the “Facebook of Finance” because it allows you to create a personal profile, track stocks, apply for loans, and do everything related to personal finance under 1 hub
2. Arrival (NASDAQ: ARVL)
Arrival is a UK based EV bus maker that I’m extremely bullish on due to its 10,000 electric delivery van preorder from UPS.
The company already has 59,000 preorders in total for its electric vehicles plus announced the groundbreaking of a brand new manufacturing plant in Charlotte, North Carolina.
Partnerships with Uber and UPS seem to be progressing well and right now investors are waiting for production to begin in 2022.
One of the downsides for Arrival is its lofty $7 billion valuation despite generating zero revenue at the moment. However, Arrival is well positioned for Europe’s EV market and I think ARVL stock provides a lot of upside for patient investors.
ARVL stock is a long term multi-year hold that could take years to bear fruit.
3. Joby (NASDAQ: JOBY)
Joby Aviation is an EVTOL maker that plans to launch its commercial electric aircraft in 2024. The company is backed by major investors including Uber, Toyota, Linkedin founder Reid Hoffman, and early Tesla investor Jeff Skroll.
I consider Joby the “Tesla of eVTOLs” and they are well positioned to dominate the urban air travel industry in America with their beautifully designed aircraft that will operate on the Uber platform.
Joby is one of the best eVTOL stocks that will benefit from a surge in commercial short distance air travel within this decade. JOBY stock trades under $20 with just a $7 billion market cap so there’s a lot of growth ahead for this company.
4. Similar Web (NYSE: SMWB)
Similar Web empowers website owners & internet companies with useful data to grow their traffic and revenue. I’ve been using Similar Web personally to analyze web traffic on this website for years so it’s nice to see them go public in 2021.
In Q2 2021, Similar Web reached $32.5 million in revenue (Up 49% YoY). The company grew to 3,028 paying customers with an average of $43,800 in revenue per customers. Some of SimilarWeb’s paying customers are Walmart, Google, Adobe, J.P. Morgan, and Ford.
SMWB stock is currently trading under a $2 billion market cap, which makes it one of my favorite small cap stocks to buy right now.
5. Skillz (NYSE: SKLZ)
Skillz is the leading mobile games platform that connects players in fair, fun, and meaningful competition.
SKLZ shares soared to as high as $46 in 2021 but have lost a tremendous amount of value since then trading at around $10. While Skillz has a lot of long term value, I think now investors are hoping for a potential short squeeze pop more than anything.
SKLZ is one of the most heavily shorted stocks, which helped attract the attention of the subreddit WallStreetBets.
In Q2 2021, Skillz delivered its 22nd consecutive quarter of revenue growth and revenue reached $89.5 million (Up 52% YoY). The downside is Skillz recorded a net loss of $79.6 million and continues to accelerate its cash burn.
Several key partnerships and acquisitions could boost SKLZ stock in the near future. The company acquired Aarki, a global demand side platform with over 465 million users, to broaden its scope and signed key partnerships with Exit Games and the NFL.
SKLZ stock sits at a $4 billion market cap with plenty of upside in the future as e-sports and mobile gaming gains more adoption.
6. Fisker (NYSE: FSR)
Fisker is an EV maker that plans to launch its flagship electric SUV called Fisker Ocean in 2023.