S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20
S&P 500   4,594.62
DOW   34,899.34
QQQ   391.20

7 Post-Inauguration Stocks to Buy For Under $20

Posted on Wednesday, January 22nd, 2020 by MarketBeat Staff
7 Post-Inauguration Stocks to Buy For Under $20There’s a new occupant (officially) at 1600 Pennsylvania Avenue and the stock market is doing its part to promote unity. The Dow shot to a record high on Inauguration Day. We don’t imagine the honeymoon will last long. However it serves as a reminder that investors are more interested in the “what” more than “what party” when it comes to the way it moves.

With that said, many investors are attempting to read the tea leaves of the nascent Biden administration. One of the challenges will be that many of the usual suspects such as the FAANG stocks remain popular, yet frighteningly expensive (in terms of share price).

Valuation is in the eye of the beholder. But some investors may be looking for low-priced stocks that can get them more bang for their buck. The good news is that there are many stocks that you can buy for under $20 that not only show impressive growth, but are leaning in to the macroeconomic issues that will be present during at least the early part of the Biden administration.

In this special presentation, we’re giving you seven of our picks for low-priced stocks you can buy for under $20 today. But take note, these stocks may easily be over $20 in the next few months.

#1 - Rocket Companies (NYSE:RKT)

Rocket Companies logo

In what could be described as a tale of two economies, the housing market remains strong. There are many reasons why individuals may be moving. But with mortgage rates likely to remain at, or near, historic lows for the foreseeable future it makes sense to scoop up shares of Rocket Companies (NYSE:RKT). Rocket is the parent company of Quicken Loans and Rocket Mortgage.

Rocket has transformed the way consumers shop for and obtain a mortgage. And it is leaning into two significant trends. First, the company puts the entire mortgage approval process online. This is right in the wheelhouse of the millennial audience that is likely to be buying homes in the near future. Second, the company has lower costs because it’s entirely digital format reduces the need for loan officers.

Technically, RKT stock is just above the $20 threshold. At the time of this writing it’s at $20.03. But since the stock began trading publicly in 2020, it has remained steady at right around $20. It’s fair to say that Rocket won’t be alone in this space for long. However this is a rare opportunity to pay a start-up price for a company that is a market leader.

About Rocket Companies

Rocket Companies, Inc engages in the tech-driven real estate, mortgage, and eCommerce businesses in the United States and Canada. It operates in two segments, Direct to Consumer and Partner Network. The company's solutions include Rocket Mortgage, a mortgage lender; Amrock that provides title insurance, property valuation, and settlement services; Rocket Homes, a home search platform and real estate agent referral network, which offers technology-enabled services to support the home buying and selling experience; Rocket Auto, an automotive retail marketplace that provides centralized and virtual car sales support to national car rental and online car purchasing platforms; and Rocket Loans, an online-based personal loans business.Read More 
Current Price
$15.69
Consensus Rating
Hold
Ratings Breakdown
1 Buy Ratings, 9 Hold Ratings, 3 Sell Ratings.
Consensus Price Target
$19.13 (21.9% Upside)




#2 - Canoo (NYSE:GOEV)

Canoo logo

Many electric vehicle (EV) companies came to market by way of a special purpose acquisition company (SPAC). Among those was Canoo (NYSE:GOEV). Let’s keep things real. Many of these companies have interesting ideas that may never reach scale. As it relates to EV stocks, one thing you should look for is differentiation. Canoo delivers that in two important ways.

First, the company is going to be introducing what is known as a multipurpose delivery vehicle (MPDV). Canoo will use a “by wire” design that is part of its “skateboard” platform. The skateboard design is a chassis that essentially provides a template that the company can use to manufacture EVs much faster. And the “by wire” design allows the vehicle to be configured for maximum space and will eventually allow for autonomous driving capability.

 And once Canoo’s vehicles hit the market in 2022, they will be offering consumers a “transportation-as-a-service” model that gives it an SaaS component. Consumers can lease a vehicle for a specified period of time (minimum of 30 days). Once that time period ends, they can extend their “lease” or they can return the vehicle with no long-term contract.

About Canoo

Canoo Inc, a mobility technology company, designs, engineers, develops, and manufactures electric vehicles for commercial and consumer markets in the United States. The company offers B2B delivery vehicles, multi-purpose delivery vehicles, and lifestyle vehicles using skateboard architecture technology.Read More 
Current Price
$12.22
Consensus Rating
Hold
Ratings Breakdown
2 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$11.75 (3.8% Downside)




#3 - Brightcove (NASDAQ:BCOV)

Brightcove logo

The cloud remains another red-hot sector for investors. Brightcove (NASDAQ:BCOV) is a great example of the money that’s being invested in cloud stocks. In January, 2020 BCOV stock was trading for under $10. At the time of this writing, it’s trading around $18 and has the momentum that should push it above that mark shortly.

Brightcove is engaged in cloud delivery of video. When you consider the staggering amount of video content being produced these days, you can understand that there is a desire for companies to monetize video. And that’s where Brightcove comes in. In fact, the company already has a very respectable client list that includes Adobe (NASDAQ:ADBE) and Ford (NYSE:F).

Brightcove has a two-tier pricing system: non-premium and premium. Obviously the goal is to get more of its customers on the premium track. Information in the company’s most recent earnings report suggests it is doing just that. Annualized subscription revenue per premium customer was $89,000 in the prior quarter. That was up from the $84,500 the company recorded in the prior year’s quarter.

About Brightcove

Brightcove, Inc engages in the provision of video cloud solutions. The firm enables its customers to publish and distribute video to Internet-connected devices. Its products include Video Cloud, Video Marketing Suite, Enterprise Video Suite, Brightcove Campaign, Player, Live, Dynamic Server-Side Ad Insertion (SSAI), OTT Experiences, and Zencoder.Read More 
Current Price
$9.76
Consensus Rating
Buy
Ratings Breakdown
3 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$23.00 (135.7% Upside)




#4 - LG Display (NYSE:LPL)

LG Display logo

Prior to the Covid-19 pandemic, finding a quality tech stock at a price tag below $20 was not easy to do. Today, investors have a lot more option. In the initial months after the pandemic began, investors fled to quality and that left some lower-priced stocks dangling.

But in the last few months, as many tech stocks look overvalued, investors are trying to find some underpriced gems. One for you to consider is LG Display (NYSE:LPL). If you’re looking at this article on an iPhone, then you are probably looking at a touch-screen made by LG Display. And as the company’s name suggests it is the screen-maker for the Korean electronics company LG.

The remote work and remote learning environments brought on by the pandemic was a major catalyst for the stock which climbed over 20% last year. The company is projecting demand to stick around for several years. For example, Apple (NASDAQ:AAPL) is supposed to announce higher-than-expected sales for the iPhone 12). And to account for that growth, the company recently opened a new facility in China.

About LG Display

LG Display Co, Ltd. engages in the manufacture and sale of thin film transistor and organic light-emitting diode display (OLED) products. Its products include television, commercial, monitor, notebook, mobile, auto, and OLED display. The company was founded on February 28, 1985 and is headquartered in Seoul, South Korea.
Current Price
$8.56
Consensus Rating
Sell
Ratings Breakdown
0 Buy Ratings, 2 Hold Ratings, 3 Sell Ratings.
Consensus Price Target
N/A




#5 - Ares Capital (NASDAQ:ARCC)

Ares Capital logo

Having access to capital has been a key for small- and medium-sized businesses to survive the global pandemic. Ares Capital (NASDAQ:ARCC) helps fill that need. The firm is a direct lender to private, mid-market companies who need financing.

For those who are unfamiliar with the company, Ares Capital is a business development company (BDC). BDCs are a corporate structure that was established in the 1980s as a way for public investors to invest in privately held U.S. businesses.

Since the company’s initial public offering (IPO) in 2004, Ares Capital has averaged an 11% return for its shareholders every year. As of September 30,2020, the company had a fair value of over $14 billion ($14.4 billion) and had a diversified portfolio of 347 companies.

And another thing, BDCs operate similar to real estate investment trusts (REITs) in that they are required to distribute at least 90% of its taxable income as dividends.

About Ares Capital

Ares Capital Corp is a closed-end non-diversified management investment company. The fund targets companies operating in the fields of Health Care Services, Software & Services, Consumer Durables & Apparel, Energy, Food & Beverage, and Retail. It provides financing for buyouts, acquisitions, recapitalizations, restructurings, rescue financing, growth capital and general refinancing.Read More 
Current Price
$20.35
Consensus Rating
Buy
Ratings Breakdown
5 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$20.96 (3.0% Upside)




#6 - Zynga (NASDAQ:ZNGA)

Zynga logo

Mobile gaming was already popular before the pandemic (think Candy Crush). Zynga (NASDAQ:ZNGA) is known as the brand behind such popular games as FarmVille, Words with Friends and, more recently Harry Potter: Puzzles and Spells.

Like any company in a field such as this, user engagement is critical. And on that score, Zynga is doing very well. In its most recent quarter, the company reported 31 million daily active users and 83 million monthly active users. Both numbers were numbers the company had not seen in about six years.

Zynga turned that user engagement into a 46% year-over-year revenue increase to $503 million. More impressively, the company set another record by generating  a positive cash flow of $113 million.

It could be fair to say that this growth was a one-off due to the pandemic. However Zynga continues to develop more games and increase its development talent to ensure it can keep those engagement numbers high.

Zynga is also a backdoor play on 5G technology. The company is making inroad into the Asia market and expects that market to continue to heat up as 5G technology and its accompanying speed will make mobile gaming more desirable. 

About Zynga

Zynga, Inc provides social game services. It develops, markets and operates social games as live services played on mobile platforms such as Apple's iOS operating system and Google's Android operating system, and social networking sites such as Facebook. It offers Chess with Friends, Crazy Cake Swap, Draw Something, FarmVille, Gems with Friends, Ice Age: Arctic Blast, Looney Tunes Dash, Speed Guess Something, What's The Phrase, Wizard of Oz Magic Match, Yummy Gummy, Free Slots, Black Diamond Casino, Hit It Rich, Zynga Poker and Willy Wonka Slots.Read More 
Current Price
$6.44
Consensus Rating
Buy
Ratings Breakdown
14 Buy Ratings, 0 Hold Ratings, 1 Sell Ratings.
Consensus Price Target
$11.80 (83.2% Upside)




#7 - Hanesbrands (NYSE:HBI)

Hanesbrands logo

When you think about making undergarments a sexy investment, there might be other stocks that come to mind. Hanesbrands (NYSE:HBI) may not be the brand consumers will choose for a romantic post-pandemic getaway, but the company’s products may have been practical, low-cost holiday gifts in a year when practical, low-cost gifts were on everybody’s mind. And Hanes brand products were available at retailers such as Target (NYSE:TGT) and Walmart (NYSE:WMT) which made them easy for consumers to find.

Also when you buy HBI stock you’re buying into the Champion brand. And while that may also not be a sexy brand, Esquire magazine does think that the Champion brand is pretty cool.

Investors seem to agree. After falling over 25% after a disappointing earnings report in November, HBI stock has made a strong recovery. The stock is positive year-to-date and in the last 12-month period. Although the consensus price target for the stock suggests it may be overvalued, recent price target suggest the stock has more room to grow.

About Hanesbrands

Hanesbrands, Inc is a consumer goods company, which engages in the design, manufacture, sourcing, and sale of everyday basic innerwear and activewear apparel in the Americas, Europe, Australia and Asia Pacific. It operates through the following three segments: Innerwear, Activewear, and International.Read More 
Current Price
$16.82
Consensus Rating
Buy
Ratings Breakdown
5 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$21.63 (28.6% Upside)



 

As mentioned in the introduction, now is not the time to throw in the towel on stocks. In fact, equities are going to be the place to be as the economy reopens. But that doesn’t mean you need to have your capital chasing stocks that may be overvalued.

With that said, low-priced stocks are not without risk. All of the stocks in this presentation are small-cap or mid-cap stocks. In times of market volatility, these stocks can have major price moves. Of course that can be good and bad. The point is that you should only be tapping into the speculative part of your portfolio to buy these stocks.

Investors with a lower risk tolerance may choose to come at these stocks from a different angle. There are numerous mutual funds and exchange-traded (ETF) funds that specialize in small- and mid-cap stocks. Three of the most popular mid-cap ETFs are the iShares S&P Mid-Cap 400 Growth ETF (NYSEARCA:IJK), the Vanguard S&P Mid-Cap 400 Growth ETF (NYSEARCA:IVOG), and the SPDR S&P 400 Mid Cap Growth ETF (NYSEARCA: MDYG).

15 Healthcare Stocks that Analysts Love

There are more than 200 healthcare companies traded on public markets. Given the sheer number of pharmaceutical companies, medical research firms, hospital systems, and other healthcare stocks, it can be hard to identify which healthcare companies will outperform the market.

Fortunately, Wall Street's brightest minds have already done this for us. Every year, analysts issue approximately 3,000 distinct recommendations for healthcare companies. Analysts don't always get their "buy" ratings right, but it's worth taking a hard look when several analysts from different brokerages and research firms are giving "strong-buy" and "buy" ratings to the same healthcare stock.

This slide show lists the 15 healthcare companies with the highest average analyst recommendations from Wall Street's equities research analysts over the last 12 months.

View the "15 Healthcare Stocks that Analysts Love" Here.





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