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What does $20 get you these days? The answer is not that much, unfortunately. But hopefully, that’s getting better following the October CPI report. Inflation in the month of October came in at 7.7%. That was better than the 7.9% rate that had been anticipated. So, it serves as a sign inflation could be decreasing faster than previously expected. If that continues to be true, $20 will go further moving forward. It can certainly be used on stocks under $20 to buy and hold forever.
That amount of capital probably isn’t enough to buy a share of stock in firms with the greatest market capitalization, sure. But it is well above the $5 threshold that often defines penny stocks.
Investors purchasing shares nearer the $20 level will benefit from lower risk while maintaining significant upside potential. Thus, a buy-and-hold mentality can go a long way with $20.
Stocks Under $20 to Buy and Hold: Ford (F)
Source: Jonathan Weiss / Shutterstock.comFord (NYSE:F) and its stock are rapidly evolving into a future-forward company. Depending on who you are, that is either disappointing or exciting.
It’s likely disappointing for fans of Ford as a legacy automobile manufacturer with a deep history in the internal combustion engine space. Ford’s reputation for success was built on these vehicles, including the Model T. So, many fans are worried its push toward electric vehicles (EVs) is too bold a departure from its roots.
At the same time, it’s an exciting period to invest in Ford and F stock. The simple truth is EVs command higher prices and EV stocks command greater valuations. Tesla (NASDAQ:TSLA) has proven the viability of EVs as a vehicle class. And TSLA shares, with their sky-high valuation, have proven too enticing for Ford not to emulate.
Investing in Ford now is less about its current financial metrics than it is about simply taking a leap of faith. The company sold more than double the number of EVs in October of this year than last. The F-150 Lightning has the potential to be a massive seller, and early results and growth are very promising.
Upwork (UPWK)
Source: Funstock / Shutterstock.comUpwork (NASDAQ:UPWK) stock is interesting for technical reasons as well as the fact it is well-positioned to capitalize on growing trends moving forward.
From a technical perspective, investors will be interested to know UPWK stock has bested analyst EPS expectations in each of the last four quarters. It’s little wonder then that Upwork carries a “buy” rating and a target price above $21. The good news for investors is that it trades for less than $14 currently.
Upwork is front and center in the conversation surrounding the gig economy with its well-known freelance platform. The gig economy is expected to grow to more than $401 billion this year. By 2023, it is expected to grow to $455 billion. Just a few years ago, in 2018, its value was less than half that at $204 billion.
The company has to work out operational inefficiencies that continue to lead to losses. But its growth and position in the gig economy more than makes up for those issues.
Stocks Under $20 to Buy and Hold: Ericsson (ERIC)
Source: rafapress / Shutterstock.comEricsson (NYSE:ERIC) stock is an inexpensive way to invest in the buildout of the 5G network in the U.S., giving it plenty of upside for the long term.
U.S. regulators are set to ban Chinese firm Huawei from selling in the U.S. after citing them as national security threats back in 2020. That ban is designed to prevent Huawei and ZTE, among others, from selling network equipment vital to the 5G buildout in the United States.
These moves have resulted in preferential status being given to networking equipment suppliers from U.S. allied countries. Those firms included Swedish firm Ericsson and its Finnish competitor, Nokia (NYSE:NOK).
There was even speculation that the U.S. might purchase a controlling stake in the two firms to create its own 5G sphere of control. That never came to be, but Ericsson remains an inexpensive stock to consider for that 5G angle.
Ericsson’s network segment is its most important business and North America, its most important geography. Sales grew 10% year-over-year (YOY) in the most recent quarter in North America and 5G networking equipment sales will continue to grow.
Agiliti (AGTI)
Source: venusvi / Shutterstock.comAgiliti (NYSE:AGTI) provides medical equipment to the U.S. healthcare industry. AGI stock is one to consider because it trades for less than $15 and carries a target stock price above $22 with a buy rating.
The fundamentals behind Agiliti are the real reason investors should consider buying shares. Agiliti’s organic growth numbers are strong, with revenue that reached $271.2 million in Q3, up 3.3%. And revenues are up 12.2% to $839.6 million through the first three quarters of this year.
Net income figures in 2022 have been impressive as well. Agiliti posted a net gain of $14.02 million through the first three quarters of 2021. That number has increased 91% to $26.8 million through the same period in 2022.
If Agiliti can continue to trend in the same direction, it won’t be long before it realizes that target price.
Stocks Under $20 to Buy and Hold: PetIQ (PETQ)
Source: Sharomka via ShutterstockPetIQ (NASDAQ:PETQ) stock represents a pet health and wellness products firm with massive upside. In fact, based on its target price of $24.25, it has more than 100% upside over its current price of $11.32.
The Idaho-based firm delivers pet medications and wellness products through 60,000 distribution points across the U.S. PetIQ also operates its own medication manufacturing facility and 2,600 retail locations.
PetIQ’s Q3 earnings report points to a company that is doing very well, indeed. Sales reached $210 million in the period, near the high end of guidance. Its manufactured products accounted for 32.3% of that total, up from 31% a year prior. That is an encouraging sign for the company as pharmaceutical manufacturing often comes with high margins.
Service revenues increased 15.6% to $33.5 million during the quarter as well. PetIQ gave guidance that it anticipates sales between $920 million and $940 million this year. Americans love their pets, and investing in PETQ is one way to capitalize on that rising trend.
Theseus Pharmaceuticals (THRX)
Source: Hernan E. Schmidt / Shutterstock.comTheseus Pharmaceuticals (NASDAQ:THRX) stock is an interesting investment in cancer treatment. The company is developing therapeutics that hope to overcome the mutations that cancers develop which limit therapeutic efficacy.
Theseus Pharmaceuticals is developing pan-variant targeted therapeutics. In short, the firm’s products could one day target all the major drivers of cancer treatment resistance. The company is on a path to commercialize tyrosine kinase inhibitors.
Theseus Pharmaceuticals’ lead candidate is THE-630. It is indicated for the treatment of resistant advanced GIST, a type of gastrointestinal cancer that spreads through the body. THE-630 is currently in stage ½ trials. There are currently no therapies for patients in this group.
The company anticipates results from those trials in Q2 of 2023. It reported $228.6 million in cash at the end of the second quarter. That should be enough to fund the firm through the end of 2024, according to its investor relations team.
Stocks Under $20 to Buy and Hold: Alector (ALEC)
Source: Andrus Ciprian / Shutterstock.comAlector (NASDAQ:ALEC) stock represents a biopharmaceutical doing something many such firms are: Seeking to develop and commercialize therapies for brain health. In short, it is trying to harness the power of the immune system to prevent and treat brain diseases.
Alector is particularly interested in harnessing the microglia, which are the immune cells within the brain. The microglia act much like white blood cells and scavenge pathogens and debris from within the brain. As we age, our microglia become less effective, opening the pathway for disease to manifest in the brain.
Alector is targeting diseases including frontotemporal dementia, Alzheimer’s and Amyotrophic Lateral Sclerosis (ALS). It boasts a pipeline that includes multiple clinical trials in phase 2 and phase 3.
Unlike the vast majority of biopharmaceutical firms, Alector does generate revenue. In Q3 Alector reported $14.9 million in collaboration revenues that led to a net loss of $46.1 million in the quarter. It also has $758.3 in cash, meaning it has a long runway with which to pursue the commercialization of its various therapeutics.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks.Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.
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