Here’s a list of my favorite growth stocks under $20 that could explode over the next few years.
Best Stocks Under $20
|Ticker||Company Name||Last Price|
1. Lucid Group (NASDAQ: LCID)
Lucid Motors is a luxury electric vehicle (EV) manufacturer that aims to revolutionize the way people travel and experience electric mobility. The company was founded in 2007 and is headquartered in Newark, California. Lucid Motors went public in March 2021 through a SPAC merger with Churchill Capital IV. The stock is traded on the NASDAQ exchange under the symbol “LCID.”
Lucid Motors offers a wide range of high-end EVs that cater to the needs of modern consumers. Their flagship model, the Lucid Air, is a luxury electric sedan that offers exceptional performance, innovative technology, and a premium driving experience. Lucid Motors has also announced plans to launch an affordable SUV, the Lucid Gravity, in the near future.
Since its inception, Lucid Motors has been focused on delivering high-performance EVs with a strong emphasis on sustainability and environmentally responsible manufacturing practices. With the rise of electrification and the growing demand for EVs, Lucid Motors is poised for significant growth in the coming years.
Investing in Lucid Motors stock is an opportunity for investors to gain exposure to the fast-growing EV market.
2. Robinhood (NASDAQ: HOOD)
Robinhood is a US-based investment and trading platform that is popular among millennials and new investors. It was founded in 2013 and since then has grown to become one of the largest brokerage firms in the US. Robinhood’s main selling point is its commission-free trading, which makes it accessible for individuals who may not have a lot of money to invest. The platform offers a variety of investment options including stocks, options, ETFs, and cryptocurrency.
However, Robinhood has faced some criticism in recent years, particularly over its business practices. In 2020, the company faced a lawsuit over its handling of the GameStop stock, which saw a surge in popularity due to a coordinated effort by Reddit users. The company was also criticized for its order routing practices, which were found to benefit Robinhood and its market makers rather than its customers.
Despite these controversies, Robinhood continues to grow in popularity, attracting new users with its low fees and easy-to-use platform.
3. Chargepoint (NYSE: CHPT)
ChargePoint Stock is a publicly traded company that specializes in electric vehicle (EV) charging solutions. It was founded in 2007 and went public in March 2021 through a merger with Switchback Energy Acquisition Corporation. ChargePoint offers a wide range of charging solutions including Level 2 AC charging stations, DC fast charging stations, and networked charging systems for both home and commercial use. The company has a strong customer base including corporations, government agencies, and electric utilities.
ChargePoint’s growth is driven by the increasing demand for EVs as more and more people opt for environmentally friendly modes of transportation. The company is well positioned to benefit from the growth of the EV market as it continues to expand its charging network and offer advanced solutions to meet the needs of EV owners. The company’s focus on innovation and customer experience sets it apart from its competitors, making it a preferred choice for many EV owners.
In conclusion, ChargePoint Stock is a compelling investment opportunity for those looking to invest in the growing EV market. With a strong customer base and a commitment to innovation, the company is poised for long-term growth and success.
4. Lemonade (NASDAQ: LMND)
Lemonade Inc. is a New York-based insurtech company that uses artificial intelligence and machine learning to provide insurance services. The company went public in July 2020 through a special purpose acquisition company (SPAC) and its stock is traded under the ticker symbol LMND on the New York Stock Exchange (NYSE).
Since going public, Lemonade’s stock has been on a rollercoaster ride, with its price reaching an all-time high of over $200 per share in August 2021 before dropping back down.
Investors are drawn to Lemonade due to its innovative business model, which aims to disrupt the traditional insurance industry. The company uses technology to streamline the process of buying and managing insurance policies, making it easier and more convenient for consumers.
However, Lemonade’s stock is also a high-risk, high-reward investment, and there are concerns about the company’s ability to scale its business and compete with established insurance companies. It is also important to note that the insurtech sector is highly competitive, with many new startups entering the market.
5. Affirm (NASDAQ: AFRM)
Affirm is a financial technology company that provides point-of-sale loans to consumers for their purchases. The company was founded in 2012 and went public in 2021. The stock is now trading on the NASDAQ exchange under the symbol “AFRM”.
Affirm has a unique business model, offering consumers loans for their purchases with no hidden fees or compounding interest. This has allowed the company to gain a large customer base and has led to a strong growth in revenue and profitability.
Affirm has also been successful in partnerships with e-commerce retailers, providing them with a valuable solution to help increase their sales. The company has also been expanding its services to the mortgage and personal loan markets, providing consumers with a one-stop shop for their financial needs.
Overall, Affirm’s stock is a promising investment opportunity for those interested in the fintech industry. The company’s innovative approach to consumer lending and strong growth potential make it a company to watch in the coming years.
6. Draftkings (NASDAQ: DKNG)
DraftKings is a stock that has garnered a lot of attention in recent years, particularly in the wake of the pandemic and the growth of online sports betting. The company went public in April 2020 through a merger with a special purpose acquisition company (SPAC), and since then, it has been a popular pick among investors.
DraftKings is a leading provider of daily fantasy sports and sports betting in the United States. It operates in 17 states and is licensed to operate in several others, offering a wide range of sports betting options, including NFL, NBA, MLB, NHL, and more. The company is also expanding into international markets, further boosting its growth prospects.
One of the key factors contributing to DraftKings’ success is its strong brand recognition and user engagement. It has a large and loyal customer base, with a high degree of repeat usage and customer loyalty, which is helping it to build a sustainable competitive advantage in the market.
Despite the recent growth, there are some concerns about the company’s future. For example, the growth in online sports betting is attracting increased regulatory scrutiny, and there is a risk that new regulations could limit the company’s future growth. Nevertheless, given its strong growth prospects and brand recognition, DraftKings is a stock that is worth considering for investors looking for exposure to the online sports betting sector.
7. Peleton (NASDAQ: PTON)
Peleton stock has been a topic of discussion in recent years due to the rapid growth of the company. Founded in 2012, Peleton has quickly become a leading provider of interactive at-home fitness equipment and programming. The company’s success can be attributed to its innovative and high-quality products, which provide users with a convenient and immersive fitness experience.
Peleton’s stock made its initial public offering (IPO) in September 2019. As more people are looking for ways to stay active and healthy, Peleton has been able to capitalize on this trend by offering a high-quality and accessible solution.
In addition to its innovative products, Peleton has also been successful in building a strong brand and a loyal customer base. The company’s focus on community, health, and wellness has helped it differentiate itself from other fitness companies and appeal to a wide range of consumers.
Overall, Peleton stock is an attractive investment opportunity for those looking for a growing company in the fitness industry. With its strong brand, innovative products, and loyal customer base, Peleton is well positioned for continued success in the future.
8. Coursera (NASDAQ: COUR)
Coursera is a leading online learning platform, founded in 2012. The company went public in early 2021 and its stock is now available on the New York Stock Exchange. The Coursera stock (COUR) has received a positive response from investors, with its share price steadily rising since its initial public offering.
One of the reasons behind Coursera’s popularity among investors is the increasing demand for online education. With the COVID-19 pandemic forcing many students to attend classes from home, online learning has become more prevalent. Coursera’s platform offers a wide range of courses and programs in a variety of subjects, making it an attractive option for individuals looking to enhance their skills and knowledge.
In addition to its education offerings, Coursera has also established partnerships with some of the world’s leading universities, which further boosts its credibility and reputation.
Given the positive outlook for the online education industry, Coursera’s stock is poised for strong growth in the coming years. With the company continuing to expand its offerings and partnerships, investors can expect a bright future for Coursera.
9. eHang (NASDAQ: EH)
Ehang is a Chinese company that is involved in the development of autonomous aerial vehicles (AAVs). The company has made significant strides in the development of electric passenger drones and is looking to expand its operations globally. In 2020, the company went public on the New York Stock Exchange, and its stock has been one of the most actively traded in the market.
Since going public, the stock price of Ehang has fluctuated significantly, with some analysts viewing the company as a high-risk investment. Despite this, there are many reasons to be optimistic about the future of the company.
Firstly, the demand for autonomous aerial vehicles is growing, as more and more people look for more efficient and environmentally friendly ways to travel.
Secondly, the company has a strong management team with a proven track record of developing cutting-edge technologies.
Finally, Ehang has a number of strategic partnerships in place with other companies and organizations that will help it to continue to grow and innovate.
10. Ford (NASDAQ: F)
Ford Motor Company (F) is an American multinational automaker that has been in business for over 100 years. As of 2021, it is the second largest U.S.-based automaker and the fifth largest in the world. The company’s stock is publicly traded on the New York Stock Exchange (NYSE) under the symbol F.
In recent years, Ford’s stock has faced some challenges, including increased competition from foreign automakers, declining sales, and a shift towards electric and self-driving vehicles. Despite these challenges, the company has made significant investments in new technologies and has made strides towards becoming a leader in the electric vehicle market.
Overall, investing in Ford stock can be a good option for those looking for a blue-chip stock with a long history of success and a strong commitment to innovation and growth. However, potential investors should be aware of the challenges facing the automotive industry and keep a close eye on the company’s financial performance before making any investment decisions.
11. Bigcommerce (NASDAQ: BIGC)
Bigcommerce stock is a popular investment opportunity for those looking to diversify their portfolios. The company was founded in 2009 and has since grown to become one of the leading e-commerce platform providers. It provides a simple and easy-to-use solution for small and medium-sized businesses to sell their products online. The stock is publicly traded on the NASDAQ under the ticker symbol BIGC.
Bigcommerce has seen strong growth in recent years and has also made strategic acquisitions and partnerships that have helped it to expand its offerings and reach a larger customer base.
Despite its success, Bigcommerce stock has been subject to some volatility in recent months, reflecting the broader economic uncertainty caused by the pandemic. However, many analysts remain bullish on the stock, citing its strong growth potential and the growth potential of the e-commerce sector as a whole.
Overall, Bigcommerce stock is a good investment opportunity for those looking to gain exposure to the growing e-commerce industry.
12. Fastly (NASDAQ: FSLY)
Fastly is a cloud-based content delivery network and edge computing platform that provides businesses with the infrastructure they need to securely and efficiently deliver content and applications to their customers. The company’s stock began trading on the New York Stock Exchange in 2019 and has seen substantial growth since its initial public offering (IPO).
Fastly’s innovative edge cloud platform and its focus on performance and security have made it a popular choice among businesses looking to improve their online presence. The company has partnerships with a number of major companies, including Airbnb, Alaska Airlines, and The New York Times.
In recent years, Fastly has faced increased competition from larger tech companies, such as Amazon and Google. However, the company has differentiated itself through its commitment to innovation and customer service, and has seen continued growth as a result.
Overall, Fastly is a promising stock for investors who are looking for a company that is at the forefront of innovation in the technology industry. With its focus on edge computing and content delivery, Fastly is well positioned to continue to grow and succeed in the years to come.