10 Stocks under $20 in 2021 that You Need to Know

It’s the perfect time to reinvest, invest in new stocks, or even invest for the first time ever. Despite the current pandemic, markets have been hitting new all-time highs, which means a great return. However, it also means that it is more difficult to find stocks that are reasonably priced but have a good return. Even small S&P 500 companies are trading at market caps above $1 billion as stocks have grown more expensive in their share price and valuation relative to their earnings. In a more normal market, a company in the S&P 500 has traded at around fifteen times their earnings.

Today, stocks are trading around twenty-five times their earnings. Don’t be discouraged as there are multiple undervalued stocks out there that are less than $20 per share. So, this might mean investors have to look at smaller companies that have been undiscovered by the market. As a result, it’s riskier. These stocks might not look as attractive because of this, but long-term. Therefore, you could profit from buying low today and holding onto these shares over the coming years.

The list of stocks below spans many different industries, but they are all $20 or less and have been rated by Wall Street’s top-rated research analysts with consistent ratings like “buy” and “strong buy.”

1. Bird Construction (OTCMKTS: BIRDF)

Stock Price: $6.57

Consensus Rating: Buy

Consensus Price Target: $10.40

First off, Bird Construction Inc. They’re a general contractor in Canada founded in 1920, targets projects in the commercial, industrial, and institutional sectors of the general contracting industry. The company constructs industrial buildings and carries out civil construction operations like site preparation, mechanical process work, underground piping, and earthwork for other companies in the natural gas, mining, and nuclear sectors. In addition, they focus on the construction and renovation of office buildings, hotels, malls, big box stores, apartments, hospitals, education facilities, schools, prisons, courthouses, retirement facilities, government buildings, water/wastewater treatment centers, etc. Lastly, they work with companies in the mining, retail, energy, light, residential, industrial, water, civil, and restoration sectors.  

2. Village Farms International (NASDAQ: VFF)

Stock Price: $15.09

PE Ratio: -301.74

Market Cap: $1.17 billion

Consensus Rating: Buy

Consensus Price Target: $20.00

Secondly, Village Farms International Inc, founded in Canada in 1989, produces, markets, and distributes greenhouse-grown cucumbers, peppers, and tomatoes throughout North America. By working with its subsidiaries, they operate in Energy Business, Produce Business, and Cannabis and Hemp Business. Also, they own and operate a power plant that generates and sells electricity to the British Columbia Hydro and Power Authority. Village Farms produces and supplies cannabis products and then they market this and other products to retail supermarkets and fresh food distribution companies. 

3. Everi (NYSE: EVRI)

Stock Price: $15.21

PE Ratio: -14.91

Market Cap: $1.31 billion

Consensus Rating: Buy

Consensus Price Target: $15.57

Everi Holdings Inc, founded in 1998, provides technology and entertainment solutions for the casino, gaming, and interactive industries around the world. They are divided into two areas: Games and FinTech. They offer local and wide-area gaming products like video reel games, Empire Flex, Empire DCX, Empire MPX, Core HDX, and Texan HDX. Also, they offer something called TournEvent, a sloth tournament terminal and system machine and they sell player terminals, licenses, and back-office systems. In addition, the company provides ATM cash and withdrawal, POS debit card cash access transactions, credit card access transactions, check verification and warranty services, and kiosks. They also provided database services and an online payment system for gaming operators that offer intra-state and Internet-based gaming and lottery activities. Lastly, they offer casino operators assistance with meeting regulatory requirements such as EveriCares for socially conscious ticket redemption. 

4. Mirum Pharmaceuticals (NASDAQ: MIRM)

Stock Price: $19.40

PE Ratio: -5.64

Market Cap: $498.91 million

Consensus Rating: Buy

Consensus Price Target: $40.60

Mirum Pharmaceuticals Inc, a biopharmaceutical company founded in 2018, develops and commercializes late-stage pipelines of novel therapies for debilitating liver diseases. Their lead product is maralixibat, an investigational oral drug that is in Phase 3 of clinical trials for treating progressive familial intrahepatic cholestasis disease. It also treats Alagille syndrome and biliary atresia disease. Another drug they develop is called Volixibat, used for treating intrahepatic cholestasis of pregnancy and primary sclerosing cholangitis. 

5. Tourmaline Oil (OTCMKTS: TRMLF)

Stock Price: $16.78

Consensus Rating: Buy

Consensus Price Target: $26.21

Tourmaline Oil Corp, founded in 2008, acquires, explores, develops, and produces oil and natural gas in the Western Canadian Sedimentary Basin. They hold interests in places in the Alberta Deep Basin, Peace River High Triassic oil compex, and the Northeast British Columbia Montney. 

6. Teranga Gold (OTCMKTS: TGCDF)

Stock Price: $10.33

Consensus Rating: Buy

Consensus Price Target: $17.75

Teranga Gold Corporation, founded in 2010, explores, develops, produces, and sells gold in West Africa. Most importantly, their main project is in the Sabodala gold mine which covers an area of 291 square kilometers or mining and 629 square kilometers of exploration land in the Republic of Senegal. 

7. Viking Therapeutics (NASDAQ: VKTX)

Stock Price: $9.67

PE Ratio: -19.73

Market Cap: $705.45 million

Consensus Rating: Buy

Consensus Price Target: $16.44

Viking Therapeutics Inc, founded in 2012, is a clinical-stage biopharmaceutical company that focuses on the development of novel therapies for endocrine and metabolic disorders. Their main drug is VK2809, an orally available tissue and receptor-subtype of the thyroid hormone receptor beta. The drug is in Phase 2b clinical trials to treat people with biopsy-confirmed non-alcoholic steatohepatitis. Also, their other drug is called VK5211 which is an orally available non-steroidal selective androgen receptor modulator that’s in Phase II of clinical trials for people recovering from non-elective hip fracture surgery. Most recently, they are developing a drug called VK0612 which is an orally available Phase 2b-ready drug candidate for type 2 diabetes and VK0214 which is an orally available tissue and receptor-subtype of the thyroid hormone receptor beta for X-linked adrenoleukodystrophy. 

8. Oaktree Specialty Lending (NASDAQ: OCSL)

Stock Price: $6.00

PE Ratio: 21.43

Market Cap: $845.77 million

P/E Ratio: 21.4

Dividend Yield: 7.53%

Consensus Rating: Buy

Consensus Price Target: $5.20

Oaktree Specialty Lending Corporation is a business development company that specializes in investments in the middle market, bridge financing, first and second lien debt financing, mezzanine debt, senior and junior secured debt, expansions, sponsor-led acquisitions, and management buyouts in small and mid-sized companies. The company looks to invest in business serviced, retail and consumer, healthcare, education, manufacturing, construction, food and restaurant, engineering, and media and advertising sectors. Moreover, they invest between $5 million to $75 million in one-stop, first lien, and second lien debt investments which could include an equity co-investment component in companies with an enterprise value between $20 million and $150 million. Lastly, the fund has a hold size of up to $75 million and can underwrite transactions up to $100 million. 

9. Carrols Restaurant Group (NASDAQ: TAST)

Stock Price: $6.82

PE Ratio: -15.16

Market Cap: $355.27 million

Consensus Rating: Buy

Consensus Price Target: $7.58

In fact, Carrols Restaurant Group Inc, founded in 1960, operates as a Burger King franchisee in the United States. As of 2019, they had 1036 Burger King Restaurants in 23 Northeastern, Midwestern, and Southeastern states as well as 65 Popeyes restaurants in seven Southeastern states. 

10. Sientra (NASDAQ: SIEN)

Stock Price: $5.85

PE Ratio: -3.29

Market Cap: $295.16 million

Consensus Rating: Buy

Consensus Price Target: $8.20

Lastly, Sientra Inc, founded in 2003, is a medical aesthetics company that develops and sells medical aesthetics products to plastic surgeons in the United States. They operate through two sectors of the company: Breast Products and miraDry. Sientra offers silicone gel breast implants used in breast augmentation and reconstruction procedures, breast tissue expanders, and scar management products. Also, they provide body contouring products, facial and nasal implants, and saline-filled breast implant sizers. Lastly, they provide a non-surgical device for permanent reduction of underarm sweat, odor, and hair through their miraDry System. 

In conclusion, as the vaccine is being distributed, the economy is feeling the distribution as more hope for future reopenings spreads. Impressive gains have been seen in cybersecurity, biotech, and gaming because of the current world situation. 

Resources

https://www.marketbeat.com/market-data/low-priced-stocks/stocks-under-20/

https://money.usnews.com/investing/stock-market-news/slideshows/best-cheap-stocks-to-buy-under-10

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