3 High-Potential Stocks Under $20 with Strong Buy Ratings

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Finding winning stocks under $20 per share is attractive to traders and investors alike. These shares allow traders and investors to take a meaningful position with a nominal investment.

However, many low-priced stocks come with risks. That may not matter much in raging bull markets. As the meme stock movement has shown, there are times when investors can find winning stocks simply by trusting their gut. It may not make sense analytically, but there can be short periods of time when stock prices move away from fundamentals.

But in times of market volatility, gut feelings can often lead investors astray. One way to find potential winners in volatile markets is to look at analyst ratings.

Analyst ratings aren’t a perfect predictor, but they can help you understand investor sentiment. For this article, I used MarketBeat’s stock screener to find three stocks that have multiple Strong Buy ratings from analysts.

Another common feature of these stocks is the potential for at least 15% earnings growth. As investors know, earnings growth is one of the most accurate predictors of stock price growth.

Let Prosus help you find the next big thing

Pros today

Prosus stock logo
$8.78
+0.25 (+2.93%)

(As of 11/5/2024 ET)

Range of 52 weeks
$5.47

$9.20

Many risk-tolerant investors are always looking for the next big thing. When you invest in Prosus NV OTCMKTS: PROSYyou invest in a company that does the same things. Prosus is a company based in Amsterdam that invests in and operates many start-up technology companies. The company’s four core segments are: Classifieds, Food Delivery, Payments & Fintech and Edtech.

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Many of the company’s investments are in the e-commerce sector. For example, Prosus was a major investor in the Chinese e-commerce company Tencent. The company is responsible for the majority of Prosus’ Net Asset Value (NAV), but PROSY shares are up 42% this year, largely because it is selling its stake in Tencent and buying back its own shares.

Going forward, the company expects its e-commerce business unit’s adjusted profit to rise to $400 million by the end of the fiscal year. And the company is investing heavily in India and expects many of its Indian businesses to begin initial public offerings (IPOs) in the next eighteen months.

Twelve analysts have rated Prosus as a strong buy. The consensus price target is $10.66, with a high price target of $14.12.

You can bet that many gamers will make the switch

Nintendo today

Stock logo of Nintendo Co., Ltd
$12.87
-0.23 (-1.76%)

(As of 11/5/2024 ET)

Range of 52 weeks
$10.56

$15.01

Dividend yield
2.10%

P/E ratio
22.98

Next on this list is another international company. Nintendo Co. Ltd. OTCMKTS: NTDOY is a well-known gaming company that is home to legendary characters such as Mario Bros. and Donkey Kong.

The company is also known for its hardware, especially the popular Switch handheld gaming platform. The company launched the Switch in 2019 and saw its annual user base increase seven years in a row. However, growth is slowing as gamers wait for the company’s next-generation Switch platform to release in March 2025.

That’s one reason 12 out of 22 analysts give NTDOY a Strong Buy rating with a consensus price target of $63.30. That is no less than 380% compared to the current level.

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But the real story is the company’s pivot to monetizing its intellectual property. This started with the Super Mario Bros. movie in 2018, with a sequel planned for 2026. The company has also launched interactive theme parks with its Nintendo Universe characters.

If you are only making one investment in gold, choose Barrick Gold

Barrick gold today

Barrick Gold Corp stock logo
$18.14
-0.74 (-3.92%)

(As of 9:52 AM ET)

Range of 52 weeks
$13.76

$21.35

Dividend yield
2.21%

P/E ratio
21.09

Price target
$23.50

Gold was one of the best performing asset classes in 2024. You don’t have to be a “gold bug” to understand that now may be a good time to gain some exposure to basic materials stocks, especially those related to gold.

For many investors, that may mean owning physical gold. At the time of writing, a troy ounce of gold is selling for $2,735.50, which is near an all-time high. And many industry observers expect the yellow metal to rise to $3,000 by the end of the year, and possibly rise even further.

But investing in gold miners is a good way to gain exposure without the logistical concerns that come with owning physical gold. Barrick Gold Corp. NYSE: GOLD is the logical choice. Barrick is one of the largest gold mining companies in the world, with a market capitalization of over $33 billion. The main source of income comes from the Cortez gold mine in Nevada. It is one of the largest mines in the world and has been operating for more than 50 years.

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GOLD shares are up just 5% in 2024, but analysts predict 42% earnings growth over the next twelve months. Eleven out of 21 analysts give the GOLD stock a Strong Buy rating with a consensus price target of $24.67, which is an upside of 29% from the stock’s closing price on November 1, 2024.

Before you make your next trade, you want to hear this.

MarketBeat daily tracks Wall Street’s top-rated and top-performing research analysts and the stocks they recommend to their clients.

Our team identified the five stocks that top analysts are quietly telling their clients to buy now before the broader market takes hold… and none of the big stocks made the list.

They believe these five stocks are the five best companies investors can buy right now…

View the five stocks here

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