The sweet spot for many investors lies in stocks trading under $20. These companies are past the 'penny stock' phase — showing real revenue and market capitalization — but still offer the psychological and mathematical advantage of a lower share price. A move from $15 to $30 is a double; a move from $1500 to $3000 is much harder to achieve.
Finding quality in this price range requires diligence. Often, stocks trade under $20 because they have been beaten down or are ignored by Wall Street. Our goal is to filter out the 'falling knives' and identify the mispriced gems — companies with solid fundamentals that are simply trading at an accessible entry point.
Our quantitative model screens thousands of stocks daily to find those under $20 with High Composite Scores, ensuring you get 'cheap' stocks that aren't 'junk' stocks.
Top 10 Best Stocks Under $20 Picks
| # | Ticker | Composite | Rating | Composite |
|---|---|---|---|---|
| 1 | UVE | 63.1 | 63.1 | |
| 2 | STNG | 62.4 | 62.4 | |
| 3 | WTM | 62.0 | 62.0 | |
| 4 | PKBK | 61.7 | 61.7 | |
| 5 | TEN | 61.7 | 61.7 | |
| 6 | OPY | 61.5 | 61.5 | |
| 7 | TNK | 61.0 | 61.0 | |
| 8 | RRBI | 60.9 | 60.9 | |
| 9 | PEBK | 60.9 | 60.9 | |
| 10 | TIGO | 60.8 | 60.8 | |
| 11 | GLDD | 60.7 | 60.7 | |
| 12 | SII | 60.5 | 60.5 | |
| 13 | VIRT | 60.4 | 60.4 | |
| 14 | GFR | 60.4 | 60.4 | |
| 15 | RCI | 60.2 | 60.2 | |
| 16 | TW | 60.1 | 60.1 | |
| 17 | HAFN | 60.1 | 60.1 | |
| 18 | CCBG | 60.1 | 60.1 | |
| 19 | WABC | 59.9 | 59.9 | |
| 20 | GASS | 59.9 | 59.9 | |
| 21 | ITRN | 59.8 | 59.8 | |
| 22 | AZN | 59.8 | 59.8 | |
| 23 | TTE | 59.8 | 59.8 | |
| 24 | CASY | 59.7 | 59.7 | |
| 25 | ATLO | 59.5 | 59.5 | |
| 26 | NAT | 59.5 | 59.5 | |
| 27 | APA | 59.5 | 59.5 | |
| 28 | TGNA | 59.5 | 59.5 | |
| 29 | SSSS | 59.4 | 59.4 | |
| 30 | IHS | 59.3 | 59.3 | |
| 31 | SOBO | 59.3 | 59.3 | |
| 32 | MRX | 59.2 | 59.2 | |
| 33 | SLGL | 59.2 | 59.2 | |
| 34 | CCO | 59.1 | 59.1 | |
| 35 | ACT | 59.1 | 59.1 | |
| 36 | ALEX | 59.0 | 59.0 | |
| 37 | DHT | 58.9 | 58.9 | |
| 38 | GPRK | 58.8 | 58.8 | |
| 39 | KRP | 58.7 | 58.7 | |
| 40 | PAGP | 58.6 | 58.6 | |
| 41 | LMT | 58.5 | 58.5 | |
| 42 | DAR | 58.5 | 58.5 | |
| 43 | WSBF | 58.3 | 58.3 | |
| 44 | SEE | 58.3 | 58.3 | |
| 45 | NYT | 58.3 | 58.3 | |
| 46 | DLNG | 58.3 | 58.3 | |
| 47 | ESLT | 58.2 | 58.2 | |
| 48 | SLDE | 58.2 | 58.2 | |
| 49 | IMPP | 58.2 | 58.2 | |
| 50 | IMXI | 58.1 | 58.1 |
Rankings are based on our proprietary 6-factor quantitative model. Data sourced from institutional-grade providers and refreshed daily. Past performance does not guarantee future results.
Top 3 Picks: A Closer Look
Our top picks under $20 combine affordability with institutional-grade fundamentals — proving you don't need a large account size to own great businesses.
1. UVE — UNIVERSAL INSURANCE HOLDINGS, INC.
Our model flags UNIVERSAL INSURANCE HOLDINGS, INC. with a value score of 79.5/100, reflecting a meaningful valuation discount relative to peers. The Composite of 63.1 reinforces the margin of safety, while a composite score of 63.1 confirms the company is cheap for a reason that works in investors' favor — not distress. Quality at 74.4/100 suggests fundamentals support a re-rating higher. View full UVE analysis.
2. STNG — Scorpio Tankers Inc.
Our model flags Scorpio Tankers Inc. with a value score of 95.5/100, reflecting a meaningful valuation discount relative to peers. The Composite of 62.4 reinforces the margin of safety, while a composite score of 62.4 confirms the company is cheap for a reason that works in investors' favor — not distress. Quality at 43.4/100 warrants a closer look at underlying profitability. View full STNG analysis.
3. WTM — WHITE MOUNTAINS INSURANCE GROUP LTD
Our model flags WHITE MOUNTAINS INSURANCE GROUP LTD with a value score of 79.3/100, reflecting a meaningful valuation discount relative to peers. The Composite of 62.0 reinforces the margin of safety, while a composite score of 62.0 confirms the company is cheap for a reason that works in investors' favor — not distress. Quality at 79.7/100 suggests fundamentals support a re-rating higher. View full WTM analysis.
Methodology
We filter for stocks with a share price under $20 and a market capitalization of at least $100 million. The market cap floor is vital to ensure liquidity and avoid manipulation-prone microcaps.
We strictly require a Buy or Strong Buy rating and a Composite Score of 50+. This ensures that even at a low price, the company has fundamental merit.
The list is ranked by Composite Score attempting to find the highest quality businesses available at this specific price point.
Read our full methodology for a detailed explanation of the 6-factor model, factor weights, and data sources.
How to Use This List
Small price = higher volatility. Be prepared for wider daily swings than you would see in a $100 stock.
Use limit orders. Spreads can be slightly wider in lower-priced names.
Great for smaller accounts. The lower price allows you to buy round lots (100 shares) and sell covered calls for income, a strategy harder to execute with expensive stocks.
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Frequently Asked Questions
Are stocks under $20 better than expensive stocks?
Not necessarily better, but they offer more leverage. It is easier for a smaller company to double in size than a mega-cap giant. However, the risk is also higher.
Does this include penny stocks?
No. We generally exclude stocks under $1 (unless they meet strict market cap rules) and focus on the $2-$20 range where legitimate businesses trade.
Why is the price low?
It could be a split, a spin-off, or a sector downturn. Our model analyzes the 'Quality' score to ensure the low price isn't a sign of impending bankruptcy.
Important Disclaimer
This content is for informational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any security. All investments involve risk, including the possible loss of principal. Past performance does not guarantee future results. The quantitative model used to generate these rankings is based on historical data and may not predict future outcomes. Always conduct your own research and consult a qualified financial advisor before making investment decisions. Blank Capital Research is not a registered investment advisor.