3 actions you can’t miss for $20 or less
An interesting thing about the stock market is that there is equity for everyone.
Do you like energy values? Bank stocks? Maybe you like tech stocks or large-cap names. Maybe you like real estate investment trusts or IPOs. Or maybe you’re an investor who plays with exchange-traded funds, mutual funds, or index funds.
Whatever you like, there’s a stock (or a dozen) to suit you.
Some stocks in the market are extremely expensive – think Berkshire Hathaway (BRK.A) Class A shares priced above $480,000, or Amazon (AMZN) which is currently at $2,341. You can also find penny stocks that are a dollar or less.
For this exercise, we have selected mid and large cap stocks priced at $20 or less. We’ve limited the screen to stocks that have a one-year return of 10% or more. And because we wanted to find good value, we also limited the screen to names that have a P/E ratio below 16.
Here are three stocks to buy for under $20 that are must-watch picks.
I’ve been back and forth on Ford Motor (F) since I followed the market. I was pretty bullish on Ford a few years ago, but the company was a big disappointment for the latter half of the 2010s.
What changed ?
Well, I really like what Ford is doing with electric vehicles. Ford realizes that electric vehicles are a path to future growth and profitability, so it makes perfect sense to transform the company’s product lines and factories to support electrification. Ford is spending $22 billion on this effort through 2025. All of the vehicles it sells in Europe will be electric by 2030.
Last week, the company began production of the F-150 Lightning electric pickup in Dearborn, Michigan. The F-150 is the best-selling pickup in the United States, and Ford already has more than 200,000 reservations for the F-150 Lightning.
Even though Ford has been hit hard by the semiconductor shortage, Ford stock is up 29% in the past 12 months. It also has a very cheap P/E ratio of 5.3.
Based in Calgary, Vermilion Energy (VETERINARY) is an oil and gas producer with operations in the United States, Canada, Europe and Australia. The Company is focused on light oil and natural gas production in Canada and the United States, natural gas exploration in the Netherlands and Germany, and oilfields in Australia and France. The company also holds a 20% interest in the Corrib gas field in Ireland.
Oil and natural gas prices are on the rise, largely because of Russia’s war in Ukraine and the pressure it puts on European countries helping Kyiv. This will only help Vermilion Energy’s stock move forward.
Scotiabank analyst Galvin Wylie raised his firm’s price target on VET shares from C$27 to C$30 while maintaining an “sector yield” rating. National Bank analyst Travis Wood raised his company’s target price from C$34 to C$53, retaining an “outperform” rating.
VET stock is up 181% over the past 12 months and currently has a P/E ratio of 3.8.
Mitsubishi UFJ Financial Group
Mitsubishi UFJ Financial Group (MUFG) is a holding company that provides financial services in retail, corporate and investment banking. The company, headquartered in Tokyo, was founded in 2001.
It operates in more than 50 countries and regions and manages approximately $3 trillion in assets.
Bank of America recently upgraded its rating on MUFG shares from Hold to Buy, and set a new price target of 840 yen from its previous target of 750 yen. BoA said the company’s 4% dividend made it the highest among Japan’s major bank stocks.
MUFG stock is up 9% over the past 12 months and is priced at an attractive P/E of 6.9.
Discover new investment ideas with reliable data.
Read the full disclaimer and disclosure