You get what you pay for and that represents a warning of sorts regarding under-$20 stocks. You never want to buy securities simply because they’re priced below a psychologically satisfying number.
Still, even the suits on Wall Street like to speculate on certain ideas. Since they have a platform, they can raise their profile by pounding the table on the next big thing. Further, analysts on the Street often lever resources and other assets that retail investors simply lack. So, you can save yourself some time by piggybacking off their research.
Of course, you still need to do your own due diligence. It’s your money after all. Still, these analyst-endorsed under-$20 stocks provide much-needed confidence at this juncture.
Target Hospitality (TH)
Falling under the industrial category, Target Hospitality (NASDAQ:TH) specializes in specialty business services. The company operates through two segments, the mainline hospitality unit and another division that covers government contracts. It owns a network of specialty rental accommodation units. Per its public profile, Target serves federal government contractors and natural resource development companies.
As one of the compelling under-$20 stocks, TH could rise on the booming energy market. Recently, the consumer price index report showed that inflation clocked in higher than expected. That was mainly due to rising oil prices. And the factors that have contributed to the increase – such as geopolitical flashpoints – show no signs of abating. Cynically, this dynamic could lead to downwind benefits for TH stock.
Admittedly, analysts are looking for fiscal 2024 revenue to reach $413.43 million. That’s almost 27% below last year’s haul of $563.61 million. However, the potential paradigm shift in the energy ecosystem may be worth speculating on. Therefore, it’s an attractive candidate for under-$20 stocks.
SoundThinking (SSTI)
Listed under the technology sphere, SoundThinking (NASDAQ:SSTI) conducts business in the application software sector. Per its public profile, the company bills itself as a provider of transformative solutions for law enforcement and civic leadership. Take away the word salad and what you have here is a technology that can detect gunshots and pinpoint where they materialized.
Fundamentally, one can see the immediate value of such an innovation. With gun violence becoming a tragic staple of American society, we’ve got to do something about the problem. SoundThinking can help. However, controversies have sprouted regarding the accuracy of the system. Also, there are political and sociological sensitivities involved in deploying such systems.
That said, I have to go back to the idea that something needs to be done. While SoundThinking’s fiscal performance last year was not great, it started to turn things around in the fourth quarter. This year, analysts anticipate revenue of $104.84 million, up 13.1% from last year’s tally of $92.72 million.
If you want to speculate, SSTI ranks among the under-$20 stocks to buy.
SkyWater Technology (SKYT)
Conducting business in the technology sphere, SkyWater Technology (NASDAQ:SKYT) focuses on the semiconductor category. With its subsidiaries, SkyWater operates as a pure-play foundry. It engages in the provision of semiconductor development, manufacturing and packaging services in the U.S. Given the severe lesson that the Covid-19 crisis taught us about global supply chains, SKYT could easily become one of the top under-$20 stocks to consider.
Since the start of the year, SKYT gained 11%. However, during the midweek session, it dipped more than 6%. That goes to show you the volatility involved in this space. However, analysts love SkyWater, rating its shares a unanimous strong buy. Also, the average price target stands at $15, implying almost 51% upside potential.
Overall, the company benefited from a strong performance last year. Yes, there was a bum note in the second quarter. Still, the average quarterly surprise landed at 46.2% above experts’ consensus targets.
For the current fiscal year, they’re looking for sales to hit $330.73 million. That’s up 15.4% from last year’s haul of $286.68 million.
On the date of publication, Josh Enomoto 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.