NU - 3 Under $20 Stocks to Buy Now: June 2024

2024-06-18 06:15:00 ET

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

With the stock market hitting new all-time highs, it becomes difficult to find stocks under $20 to buy. Although the stock price doesn’t matter as much as the business, it would be nice to find good companies at low prices to scoop up their shares.

It is just easier for stocks under $20 now to double in value to $40 than a comparable business priced at $10 per share to double to $20. Even though both are moving up the same percentage, starting from a small base is just intuitive.

Below are three stocks under $20 to buy today. You will thank yourself for getting in now before they run up the score — and their stock price — very soon.

Hudson Technologies (HDSN)

Hudson Technologies (NASDAQ: HDSN ) is the leading provider of reclaimed refrigerants with a 35% market share. That’s important because the market for reclaimed refrigerants — the kind used in home central air conditioning units and car AC systems — is about to explode.

Congress enacted the American Innovation and Manufacturing ( AIM ) Act in 2020, which requires the phasing down of virgin hydrofluorocarbons ( HFCs ). The Environmental Protection Agency created rules mandating a 40% reduction in the HFCs between 2024 and 2028 while there are no limits on the use of reclaimed refrigerants. Further phase-downs of HFCs will continue through 2036.

Moreover, the EPA will be finalizing rules this summer mandating the use of reclaimed refrigerants in certain sectors, providing Hudson Technologies with a huge market opportunity. Although Hudson’s first-quarter results showed a sharp decline in revenue, that was because the period is the slowest of the year and last year was so strong. That was due to the early phase of the law going into effect and the initial panic by the market to its impact. That settled down but now the real growth phase is set to begin.

With Hudson Technologies trading around $9 per share, it marks a unique opportunity to get in early before its business erupts.

Nu Holdings (NU)

Brazilian fintech stock Nu Holdings (NYSE: NU ) has over 99 million customers throughout Latin America. The fast-growing digital bank rose to greater prominence after Warren Buffett revealed he bought shares in the company. He owns over 107 million shares, or about 2.2% of the bank, valued at almost $1.3 billion. He acquired the stock for Berkshire Hathaway (NYSE: BRK-A , BRK-B ) even as he was selling off other bank stocks during last year’s regional banking crisis.

Brazilian customers represent 94% of the total, capturing 54% of the adult population. It is now the fourth-largest financial institution in the country. While Nu Holdings enjoyed a 29% compounded annual growth rate ( CAGR ) in customer acquisition over the past two years, revenue is growing faster at a 75% CAGR. Even better, profits surpassed that and are doubling every year . As good as Nu Holdings is in Brazil, its entry into Mexico is eclipsing the growth rate it saw in its home market.

The digital bank’s stock is up 60% over the last 12 months but priced under $12 a share, Nu Holdings stock is a cheap way to get in on this growth engine.

AT&T (T)

Turning from young, fast growers to more mature, staid stocks under $20 to buy now, AT&T (NYSE: T ) represents a fantastic opportunity for investors. After spinning off its entertainment business last year and cutting its dividend, the telecom giant was left for dead.

Yet by focusing just on its core business, AT&T has significantly improved its financial standing. Operating profits rose 3% in the first quarter to $6.5 billion while generating $3.1 billion in free cash flow ( FCF ). That handily beat analyst expectations for $2.4 billion and puts the telecom on track to achieve its target of between $17 billion and $18 billion in FCF in 2024.

AT&T’s stock is 11% higher over the past year. Yet at under $18 per share, it’s trading at one of the cheapest levels in over a decade. Plus, investors still get a rich dividend that yields 6.3% annually.

On the date of publication, Rich Duprey held a LONG position in T stock. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

More From InvestorPlace

• The #1 AI Investment Might Be This Company You’ve Never Heard Of
• Musk’s “Project Omega” May Be Set to Mint New Millionaires. Here’s How to Get In.
• Legendary Investor Predicts: “Forget A.I. THIS Technology Is the Future”

The post 3 Under $20 Stocks to Buy Now: June 2024 appeared first on InvestorPlace .