Top Low-Priced Stocks to Watch: Expert Picks Under $20
Finding stocks for under $20 can attract both traders and investors, enabling significant positions with a modest investment. Yet, caution is advised as many low-priced stocks pose risks.
In booming bull markets, like the recent meme stock phenomenon, it can sometimes pay to follow intuition rather than analytical reasoning. There are moments when stock prices soar or plummet, diverging from fundamental values. However, in more turbulent market conditions, relying on gut feelings can often mislead investors. A prudent method for spotting potential winners during volatility is to check analyst ratings. While not flawless, these ratings can provide insights into investor sentiment.
For this analysis, I utilized the MarketBeat stock screener to identify three stocks that have garnered multiple Strong Buy ratings from analysts. Each of these picks also shares the potential for earnings growth of at least 15%, an important indicator of prospective stock price appreciation.
Prosus N.V.: A Leader in Technology Investments
For risk-tolerant investors seeking promising opportunities, Prosus N.V. (OTCMKTS: PROSY) stands out. Headquartered in Amsterdam, Prosus invests in various early-stage tech companies, focusing on four main areas: Classifieds, Food Delivery, Payments & Fintech, and Edtech.
Notably, Prosus has significant investments in the e-commerce sector, having invested heavily in the Chinese giant Tencent. This investment has greatly contributed to Prosus’ Net Asset Value (NAV). So far in 2024, PROSY stock has risen 42% due to the company’s strategy of divesting its Tencent holdings while repurchasing its own shares.
Looking ahead, Prosus anticipates the adjusted profit from its e-commerce segment to reach $400 million by the end of the fiscal year. Additionally, its expansive investments in India have led to expectations that several of its Indian businesses will pursue initial public offerings (IPOs) within the next 18 months.
Currently, twelve analysts rate Prosus as a Strong Buy, with a consensus price target of $10.66 and a high estimate reaching $14.12.
Nintendo Co., Ltd.: Powering Gaming with New Ventures
Another noteworthy company is Nintendo Co. Ltd. (OTCMKTS: NTDOY), celebrated for its iconic franchises, including Mario and Donkey Kong.
Nintendo’s widely recognized hardware features the Switch, a handheld gaming platform launched in 2019. The Switch has consistently seen its user base expand for seven years; however, growth rates are tapering as fans anticipate the release of a next-generation Switch in March 2025.
This has led analysts to rate NTDOY as a Strong Buy, with 12 out of 22 endorsing this recommendation. The consensus price target stands at $63.30, reflecting a potential increase of 380% from current levels.
An exciting shift for Nintendo involves monetizing its intellectual property. This strategy began with the successful Super Mario Bros. Movie in 2018, and a sequel is scheduled for 2026. Additionally, Nintendo has introduced interactive theme parks featuring its beloved characters, expanding its brand influence beyond gaming.
Barrick Gold Corp.: Your Best Bet for Gold Investment
Gold has emerged as one of the strongest asset classes in 2024, prompting many investors to consider options for exposure to this valuable metal.
Currently, the price of a troy ounce of gold is approximately $2,735.50, close to its all-time high. Experts foresee this could climb to $3,000 by year-end, with further increases possible.
For those interested in gold without the hassles of physical ownership, investing in gold mining firms is a viable option. Barrick Gold Corp. (NYSE: GOLD) is often regarded as an excellent choice. With a market capitalization exceeding $33 billion, Barrick ranks among the largest mining companies globally, deriving significant revenue from the Cortez Gold Mine in Nevada, one of the world’s largest operational mines for over half a century.
Though GOLD shares have only gained 5% this year, projections suggest a robust 42% growth in earnings over the next 12 months. Among analysts, 11 out of 21 rate GOLD as a Strong Buy. The collective price target is $24.67, indicating a potential 29% rise from the current closing price as of November 1, 2024.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
