At the same time, for many stocks under $20, the low per-share pricing is for a reason. Whether sensitive to economic conditions, sector weakness or inherent operational flaws, investors are increasingly sticking with safe fixed-income options or flocking to high-flying, expensive stocks — leaving the middle ground of stocks under $20 out in the cold.
That’s why soliciting wide opinions is important when evaluating these stocks. While you should run your own due diligence first, seeing whether your investment thesis for the stocks aligns with industry experts can help you remain objective about company prospects.
To that end, these strong buy stocks under $20 all top the Wall Street list — and are priced to acquire with significant upside potential moving forward.
Enovix (ENVX)
Among sustainable energy stocks under $20, Enovix (NASDAQ:ENVX) stands out as a small-cap company revolutionizing battery technology. Diverging from the path of major battery producers like Tesla (NASDAQ:TSLA), which continues to tweak existing lithium-ion battery designs, Enovix is transforming the very architecture of its batteries.
Enovix has developed 3D silicon lithium-ion batteries designed for scalability and ideal for high-demand applications such as smartphones and wearable technology. In 2023, the company marked significant milestones that demonstrate its pioneering approach: The FDA approved its batteries for use in vital sign monitors, essential for tracking health metrics like blood pressure and heart rate, and it also secured a significant contract with the U.S. Army to integrate its batteries into advanced military wearables.
While currently focused on research and development, these achievements suggest Enovix is on the brink of a significant market breakthrough. As the company moves towards commercializing its innovative battery solutions, it will likely play a key role in global battery development but remains a cheap stock under $20 today.
Getty Images (GETY)
Getty Images (NYSE:GETY) stands out as an underappreciated stock with unique appeal and unforeseen access to the AI sector. As a leading provider of stock photos and journalism photography, Getty Images serves creatives, media companies and corporate marketing, design and communications teams. However, its collaboration with Nvidia sets the stock apart, positioning it as a compelling AI stock to watch.
In January, Getty launched an Nvidia-powered generative AI image creator that allows both professionals and amateurs to craft customized images easily. This tool is more user-friendly than other offerings, such as Midjourney’s Discord-based platform. Importantly for professionals, it provides robust legal protections. This feature is increasingly valuable as copyright concerns grow, highlighted by ongoing legal challenges faced by companies like OpenAI.
Although Getty’s recent earnings report indicated a slight dip in sales and income, the company saw a notable increase in subscription rates, which now account for 55.4% of net revenue. This figure is expected to grow, particularly as Getty’s AI-driven services gain traction, underscoring its potential as an overlooked but promising AI option amid strong buy stocks under $20.
Evolv Technologies (EVLV)
As public and private physical security becomes increasingly central to event and infrastructure planning, AI-driven stocks like Evolv Technologies (NASDAQ:EVLV) are emerging as pivotal players. Evolv’s cutting-edge screening technology not only detects concealed weapons but also leverages advanced threat-detection tools to prevent potential security breaches, positioning it as a standout in the security technology sector. Evolv’s system leverages AI to speed up the security screening process compared to traditional methods, enhancing efficiency and reducing wait times.
For investors, Evolv offers an enticing growth opportunity. Despite its relative novelty, the company added approximately 300 new clients last year, contributing to a 120% surge in its annual recurring revenue. However, it’s worth noting that Evolv has not yet reached profitability, a common scenario for emerging tech firms — but don’t let that scare you off.
Following an earnings miss, Evolv’s stock took a dip, presenting what may be a strategic buying opportunity for those interested in AI stocks under $20. With its proven market acceptance and innovative solutions, Evolv represents a compelling investment prospect, particularly for those looking for long-term growth in the AI security sector.
On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Jeremy Flint, an MBA graduate and skilled finance writer, excels in content strategy for wealth managers and investment funds. Passionate about simplifying complex market concepts, he focuses on fixed-income investing, alternative investments, economic analysis, and the oil, gas, and utilities sectors. Jeremy’s work can also be found at www.jeremyflint.work.