One interesting thing about the stock market is that there’s an equity out there for everyone.
Do you like energy stocks? Bank stocks? Maybe you’re into tech stocks, or large-cap names. Maybe you love 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) that is right for you.
Some stocks on the market are tremendously expensive – think Berkshire Hathaway (BRK.A) Class A shares priced at more than $480,000, or Amazon (AMZN) which currently is at $2,341. You can also find penny stocks that are a buck or much less.
For this exercise, we screened for mid-cap and large-cap stocks that are priced at $20 or less. We limited the screen to stocks that have a one-year return of 10% or better. And because we wanted to find good value, we also limited the screen to names that have a price-earnings ratio of less than 16.
Here are three stocks to buy for less than $20 that are can’t-miss picks.
FordI’ve gone back and forth on Ford Motor (F) since I’ve followed the market. I was pretty bullish on Ford a few years ago, but the company was a major disappointment for the last half of the 2010s.
What’s changed?
Well, I really like what Ford is doing with EVs. Ford realizes that EVs are a path toward 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 the effort through 2025. It says all vehicles it sells in Europe will be electric by 2030.
Last week, the company started production of the electric F-150 Lightning pickup in Dearborn, Michigan. The F-150 is the best-selling pickup in the U.S., and the 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% over the last 12 months. It also has a dirt-cheap P/E ratio of 5.3.
Vermilion EnergyBased in Calgary, Vermilion Energy (VET) is an oil and gas producer with operations in the U.S., Canada, Europe and Australia. The company focuses on light oil and natural gas production in Canada, and the U.S., natural gas exploration in the Netherlands and Germany, and oilfields in Australia and France. The company also has a 20% interest in the Corrib gas field in Ireland.
Oil and natural gas prices are on an upswing, in large part because of Russia’s war in Ukraine and the pressure it’s putting on European countries that are assisting Kiev. That will only help Vermilion Energy stock moving forward.
Scotiabank analyst Galvin Wylie raised his firm’s price target on VET stock from C$27 to C$30 while keeping a “sector perform” ranking. National Bank analyst Travis Wood raised his firm’s priced target from C$34 all the way to C$53, keeping an “outperform” rating.
VET stock up 181% in the last 12 months, and currently has a P/E ratio of 3.8.
Mitsubishi UFJ Financial GroupMitsubishi 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 maintains about $3 trillion in assets.
Bank of America recently upgraded its rating on MUFG stock from Hold to Buy, and set a new price target of 840 yen from it is previous target of 750 yen. BoA said the company’s 4% dividend makes it the highest among Japan’s major bank stocks.
MUFG stock is up 9% over the last 12 months, and the stock is priced at an attractive P/E of 6.9.
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