Good morning,
Many investors have no trouble investing in stocks that are priced at $20 or less. In fact, some prefer the risk-reward possibilities that these stocks present.
But other investors believe that many stocks carry a low price tag for a reason. They feel more comfortable investing in the proven performers that come with the support of “smart money.”
Both approaches can be right or wrong. As always, it depends on the stock.
And frequently, the best way to get those kinds of gains is to find undervalued stocks that are trading for $20 or less. Finding these stocks allows investors to get a sizable return from a minimal investment of around $1,000 or $2,000. Investing in these stocks also gives investors a chance to scale into a position over time.
The good news is that even the most conservative investor can make room in their portfolio for at least one of these stocks. In fact, stocks like Apple and Amazon have made millionaires out of investors who bought shares when these companies were trading for less than $20.
But how do you find stocks like these?
That’s the focus of this special presentation. We’ve used some of the tools available to you free on MarketBeat to identify seven stocks that are currently trading at or below $20 a share but have the opportunity to provide significant growth over time.
Here are seven stocks that are trading under $20 but have strong growth potential over the next 12 months.
View the 7 Long-Term Stocks Under $20 That Could be Headed for $30
The InsiderTrades.com Team
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When we talk about investing in stocks, it's a bit like shopping for toys. Imagine you have $20 to spend, and you want to buy a toy that you think will be worth $30 in the future. This is like finding stocks under $20 that could grow to be worth $30. It's a bit like a treasure hunt, where you're looking for something really valuable but not too expensive right now.
First, let's understand what a stock is. A stock is a small piece of a company that you can buy. When you buy a stock, you're hoping that the company does really well, so the piece you own becomes more valuable. If the company makes more money or comes up with great new products, more people will want to buy the stock, which can make its price go up.
Now, finding stocks that are under $20 and could go up to $30 is exciting, but it's also tricky. It's like trying to guess which toy is going to become really popular before everyone else knows about it. To do this, you need to think about a few things.
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Look for Strong Companies: You want to find companies that seem strong and have good ideas. Maybe they make something that a lot of people need or have a new invention that everyone will want. It's like choosing a toy that is not just fun but also well-made and interesting.
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Research is Important: Just like you might read reviews or watch videos before you buy a toy, it's important to learn about the company whose stock you want to buy. You can read about how the company is doing, what products they have, and what other people think about them.
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Be Patient: Growing from $20 to $30 doesn't usually happen overnight. It's like waiting for a plant to grow. You plant the seed and take care of it, but it takes time to see it bloom. The same is true for stocks. You need to be patient and wait for the company to grow.
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Understand the Risks: Sometimes, even when you think a stock will go up, it doesn't. Maybe the company has problems, or people just aren't as interested in their products as you thought. It's important to know that this can happen and that investing in stocks can be risky.
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Diversify: This means don't put all your money into just one stock. It's like not spending all your money on one toy. If you buy different kinds of stocks, then if one doesn't do well, you have others that might be doing better.
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Keep Learning: The more you know about stocks and companies, the better choices you can make. It's like learning about different kinds of toys and games – the more you know, the more fun you can have.
In summary, finding stocks under $20 that could go up to $30 is a bit like a treasure hunt. You're looking for strong companies with good ideas that might become more valuable in the future. It's important to do your research, be patient, understand the risks, and not put all your money into one stock. And most of all, keep learning about how stocks work and how companies grow. Investing can be fun and exciting, but it's important to be smart and careful with your choices, just like when you're choosing the perfect toy to buy with your money.
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