Key Takeaways
- Our selection of stocks under $20 is based on a wide variety of sectors for portfolio diversification
- Solid fundamentals are key to uncovering whether a stock under $20 has strong future growth potential
- A buy-and-hold strategy could be the most effective approach to these emerging growth stocks
Introduction
Not knowing which stock to buy can be a daunting task. It takes a lot of time to analyze each stock's technicals and fundamentals before deciding. I have compiled this list of best stocks under $20 just for you to decide which stock could bring you the biggest returns in 2025.
Top pick list of stocks under $20
Below are my top five picks of stocks under $20 that you can consider. I have compiled this list based on potential future growth by analyzing each of the stock's industries and their company's fundamentals.
| Company | Ticker | Sector | Stock price (as of 02/2025) |
|---|---|---|---|
| Pony AI Inc | PONY | Autonomous driving | $15.94 |
| SEMrush Holdings | SEMR | Saas, Martech | $17.7 |
| Riot Platforms | RIOT | Gaming industry | $12.2 |
| Nio Inc | NIO | EV automobile | $4.21 |
| Cerus Corp | CERS | Healthcare | $1.8 |
My under $20 dollar stock must-haves
These stocks have been selected based on several factors. When considering a stock, I am conscientious of a variety of indicators. As a long-term investor, I have elected these stocks based on the below criteria, but with a strong emphasis on whether each stock's industry will grow exponentially over the next few years.
Must-haves:
- Product uniqueness & competitiveness
- Strong financial performance
- Stock price less than $20
- High-growth industries
Top stocks to consider
Pony AI (PONY)
Stock price: $16.5
Market cap: $247.5 million
Pony AI is quickly solidifying itself as the main self-driving taxi company in China. Similar to Tesla, its main uniqueness is owning the full stack process through its ownership and combination of the hardware, software, and cloud computing infrastructure.
The company is still yet to completely roll out its services and become cash-positive, but the overall industry for self-driving taxis is expected to grow from $3.3 billion to $50 billion by the year 2032. The company has well-known backers from companies such as Toyota, GAC, Nio Capital, and many others, bringing its total valuation to $8.5 billion.
Pony AI holds a competitive advantage over competitors such as DiDi due to its future low 0.38 cents/KM model vs Didi's 0.43 cents/KM. Once Pony AI fully rolls out its services across China, it is expected to attain a large market share and cut from the $50 billion industry.
SEMrush Holdings (SEMR)
Stock price: $17.8
Market cap: $2.61 billion
Potentially an unconventional stock that hasn't received much limelight, but SEMrush has been showing signs of slow growth throughout the end of 2024 into 2025. The company is best known for its SaaS marketing services and has 117,000 paying customers and 1.1 million active users.
SEMrush provides a very unique software service to marketers; unlike its competition, Ahrefs, SEMrush has developed an all-in-one tool for all types of marketing activities. The marketing SaaS industry is expected to grow from $337 billion to $942 billion by 2032, making this a highly lucrative industry.
SEMrush has increased its active user base by 196.1% since 2019, and revenue has increased by 148% since 2020. The company is showing signs of strong fundamentals, with multiple analysts upgrading or maintaining a 'strong buy' rating for SEMrush's stock.
Riot Platforms Inc (RIOT)
Stock price: $12.2
Market cap: $4.22 billion
For all you crypto fans out there, Riot is a Bitcoin mining company and North America's largest by developed capacity. The company is mining between 400-500 Bitcoin per month, and the company has estimated to double this number by 2027.
The Bitcoin mining industry is expected to grow from $2.77 billion to $8.24 billion by 2034, as Riot Platforms has established some of the world's largest mining farms, it is expected to capture a large part of this future growth.
The company's total revenue from 2021 has increased by 31.6% and has almost doubled its assets YoY from $236 million in 2020 to over $1.89 billion today. With many speculating the price of Bitcoin could reach $1 million USD, Riot Platforms may reap the benefits of a potentially ever-inflationary Bitcoin and see strong MoM returns on its stock.
Nio Inc (NIO)
Stock price: $4.4
Market cap: $9.27 billion
Nio is China's fifth-largest electric car company and holds a 2.3% global market share across the industry. It delivered over 221,000 vehicles in 2024, a 38.7% increase from the previous year.
By 2035, the number of EVs in operation is expected to increase 12-fold and be projected to become a $6.1 trillion industry. With Nio showing strong signs of consistent growth across its market share and revenue, Nio's stock may see a similar reflection in its stock price.
| Year | Market share China % | Cars sold globally | % YoY change | Revenue |
|---|---|---|---|---|
| 2020 | 0.23% | 43,728 | - | $2.5 billion |
| 2021 | 0.45% | 91,429 | 109% | $5.6 billion |
| 2022 | 0.59% | 122,486 | 33.97% | $7.5 billion |
| 2023 | 2.1% | 160,038 | 30.66% | $8.1 billion |
| 2024 | 2.3% | 221,970 | 38.70 | $9.2 billion |
Although Nio's stock is currently trading at 93% from its all-time high in 2021, the company has shown consistent revenue growth YoY since 2021 as it has increased its revenue by 242%. With Nio's recent revenue growth and car sales increase, many analysts suggest the stock will hover between $3.9 - $6.6 throughout 2025.
Cerus Corp (CERS)
Stock price: $1.83
Market cap: $343 million
Cerus is less known than the four previously selected stocks. The company focuses on the preservation and transportation of biomedical material, mainly focusing on blood. The company revolves its business around blood safety and ensures receiving patients are void of any contamination.
The global blood transportation industry is expected to grow over the coming years, and is projected to increase from $4.22 billion to $8.34 billion by 2033. Cerus remains competitive through its INTERCEPT blood system, designed to keep costs low while maintaining high decontamination quality.
The company has seen its revenue increase by 70.1% since 2020 and a 70% increase in its gross profit margin over the same time frame. Numerous analysts are maintaining a 'buy' rating, with Cerus's stock potentially reaching $4 throughout 2025.
How to find stocks under $20
Many of these selected stocks came from Intellectia's AI Stock Picker, a highly recommended feature I suggest you use, it is a great way to screen out, based on suggestions provided by AI, potentially high-growth stocks based on a wide range of customizable criteria.
Frequently Asked Questions
Which industries have the highest growth potential?
High-growth industries include AI, electric vehicles, biotech, and renewable energy, with emerging sectors like quantum computing expected to play a major role in the future.
What brokers should I use to buy cheap stocks?
Most brokers offer access to US and European markets. Still, if you’re looking to buy stocks listed in the Asian market, you may need to select a broker with international trading capabilities.
How do I evaluate if a stock under $20 is worth buying?
Looking into a stock's fundamentals and seeing strong growth, paired with a growing industry, can offer strong indications of whether a company's stock under $20 will show profitable performance.
Conclusion
In conclusion, these five stocks under $20 present promising opportunities for long-term growth. Each of these companies operates in diverse sectors and offers a balanced approach to expanding your portfolio.
The growth potential across these various industries and strong fundamentals make these stocks solid contenders for a buy-and-hold strategy.
As always, it's essential to consider your own financial goals and risk tolerance, but these picks could be valuable additions for those seeking growth in emerging sectors.
