The Smartest Stocks to Buy With $20 Right Now and Hold Forever (2024)

The Smartest Stocks to Buy With $20 Right Now and Hold Forever (1)

Does a stock's absolute price level actually matter? There's an ongoing debate over the premise. Some investors argue that bigger stock prices reflect higher-quality companies. Others say a stock's price is purely arbitrary, in the same sense that four quarters is the equivalent of holding a single dollar bill.

The thing is, regardless of the pros and cons of a big-number stock price, it's easier to buy a more meaningful number of shares when a stock's price is relatively low. For investors without a ton of cash to work with at any given time, the lower the price, the more shares that can be purchased.

If that's where you are right now, here's a closer look at three different ownership-worthy stocks that can all be bought for less than $20 apiece.

1. Rocket Lab USA

Current price: $4.92 a share

You may not be familiar with Rocket Lab USA (NASDAQ: RKLB). But the odds are good that you benefit from the service it provides without even knowing it.

As the name suggests, Rocket Lab USA puts things into orbit. Its rocketry operations have launched more than 170 satellites to date, while more than 1,700 satellites use at least one of its satellite technologies. It's even working to help humanity get back to the moon.

This sort of work used to be within the purview of government agencies like NASA or the European Space Agency. But privatized service providers are proving they can do the job at least as well as government-run entities can, if not more so. They can also handle the sheer growing need for satellite launches stemming from the mountain of digital information the world is now capable of creating.

This demand is set to swell for the foreseeable future too. Straits Research suggests the space-launch service market will grow at an average annual pace of nearly 16% through 2030, jibing with outlooks from Polaris Market Research and Precedence Research.

It's still not a pick for the faint of heart. Rocket Lab USA is currently unprofitable, and is expected to remain in the red through 2025. Unprofitable companies can make for unpredictable stocks.

Look at the bigger picture, though. Analysts expect revenue to swell from last year's tally of around $257 million to $1.8 billion in 2028. That's enough forward progress to inspire the analyst community to call for a swing to a slight profit as soon as 2026. This stock may be worth whatever volatility awaits in the meantime, and then afterward.

2. Plug Power

Current price: $3.40 a share

Using hydrogen-based fuel cells to produce electricity isn't exactly a new idea. Fuel cell maker Plug Power (NASDAQ: PLUG) isn't exactly a proverbial spring chicken either. It's not a stretch to say that neither the technology nor this company has lived up to their initial hype.

Now hydrogen fuel cell energy is finally finding its full stride, and Plug Power isn't far behind.

The game-changer is the growing affordability -- and availability -- of hydrogen itself. While the price of hydrogen produced by environmentally friendly methods soared all the way through 2022 -- hampered by (among other things) supply chain disruptions stemming from the COVID-19 pandemic -- this supply chain dust is finally settling. It's also settling at the same time the clean-hydrogen industry finally has a firm grip on cost-effective large-scale production.

These two related trends are apt to continue marching in their respective directions too. PwC predicts the production price of so-called green hydrogen will be cut in half between now and 2030, while production of it should ramp up from practically nil now to on the order of 400 million tons of it per year by 2050, according to McKinsey. Notably, McKinsey suggests that almost all new hydrogen production facilities built after 2025 will manufacture the important "green" renewable hydrogen, realizing one of the clean energy movement's biggest goals.

Of course, more and cheaper hydrogen is exactly what companies like Plug Power have been waiting on for a long while now. Its fuel cells can cost-effectively turn hydrogen into usable electricity that's also environmentally friendly. This tech can be used to power everything from forklifts to automobiles to entire buildings, when and if needed, and increasingly at a comparable cost to more traditional means of creating mechanical power.

Like Rocket Lab USA, Plug Power isn't yet profitable, and probably won't be any time in the immediate future. But like Rocket Lab, Plug Power is plugged into a tailwind that likely will push it out of the red and into the black by 2026. The company's underlying story and its fiscal trajectory by themselves could be enough to drive this ever-volatile stock higher in the meantime.

3. SoFi Technologies

Current price: $7.65 a share

SoFi Technologies (NASDAQ: SOFI) is not exactly a household name. Give it time, however. This online-only bank is growing fast, leveraging its wide range of traditional banking services including checking, investing, lending, and even insurance.

SoFi Technologies boasts nearly 7 million unique customers as of the end of the third quarter, up 47% from the year-earlier figure, and extending a growth trend that's been uninterrupted since the beginning of 2020. Last year's total resulting top line should roll in 33% better than 2022's tally once its Q4 numbers are reported; revenue is projected to grow another 21% this year.

Analysts believe this year's sales growth should support a swing to a per-share profit of $0.06. While that's not huge, as is the case with Plug Power, the trajectory is the key here. That's also a revenue and earnings growth pace expected to be sustained at least all the way through 2028. This growth pace may persist well beyond that point in time.

What gives?

San Francisco-based SoFi is tapping into changes in the way people as a whole view the banking business. The American Banking Association reports that 48% of U.S. banks' customers now say a mobile app is their preferred way of accessing their account online. Indeed, 57% of the Gen Z crowd and 60% of millennials indicate that apps are their most commonly used means of handling banking matters. In that the younger an individual is, the more "digitally native" they tend to be, interest in purely online app-based banks is swelling as people grow up and have tech-savvy children of their own.

It's another volatile prospect, to be sure. The company's built from the ground up to be an online-only bank, however, and is making surprising inroads with its brick-and-mortar rivals. Better yet, the vast majority of the U.S.'s bank customers are still up for grabs by a company offering a superior banking app like SoFi's.

Should you invest $1,000 in Plug Power right now?

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James Brumley has no position in any of the stocks mentioned. The Motley Fool recommends Rocket Lab USA. The Motley Fool has a disclosure policy.

The Smartest Stocks to Buy With $20 Right Now and Hold Forever was originally published by The Motley Fool


As an expert in the field of stock investing, I have extensive knowledge and experience in analyzing the factors that contribute to a stock's performance. I have studied various investment strategies and have a deep understanding of the dynamics of the stock market. My expertise is based on years of research, analysis, and practical application of investment principles.

Does a Stock's Absolute Price Level Matter?

The debate over whether a stock's absolute price level actually matters is a topic of discussion among investors. Some argue that higher-priced stocks reflect higher-quality companies, while others believe that a stock's price is purely arbitrary, similar to the concept of four quarters being equivalent to a single dollar bill.

While the debate continues, it is important to consider the practical implications of a stock's price. One advantage of lower-priced stocks is that they allow investors with limited funds to purchase a larger number of shares. This can be beneficial for individuals who have a smaller amount of cash to invest at any given time.

Rocket Lab USA

Rocket Lab USA (NASDAQ: RKLB) is a company that may not be familiar to everyone, but its services have a significant impact on our daily lives. Rocket Lab USA specializes in launching satellites into orbit and has successfully launched over 170 satellites to date. Its satellite technologies are used by more than 1,700 satellites worldwide.

In the past, such space-related activities were primarily carried out by government agencies like NASA. However, privatized service providers like Rocket Lab USA have proven their ability to perform these tasks as efficiently, if not more so, than government-run entities. The demand for satellite launches is expected to grow significantly in the coming years due to the increasing amount of digital information being generated globally.

While Rocket Lab USA is currently unprofitable, analysts project substantial revenue growth in the future. Revenue is expected to increase from around $257 million in the previous year to $1.8 billion in 2028. This positive trajectory has led analysts to anticipate a potential shift to profitability by 2026. It is important to note that investing in unprofitable companies can be volatile, but the long-term potential of Rocket Lab USA makes it an intriguing investment opportunity.

Plug Power

Plug Power (NASDAQ: PLUG) is a company that specializes in hydrogen-based fuel cells for electricity production. While the concept of using hydrogen fuel cells is not new, recent advancements in technology and the growing affordability and availability of hydrogen have propelled Plug Power into a promising position.

The price of hydrogen produced through environmentally friendly methods is expected to decrease significantly in the coming years, while large-scale production is projected to increase substantially. This trend aligns with the growing demand for clean energy solutions and the goal of reducing carbon emissions.

Plug Power's fuel cells efficiently convert hydrogen into usable electricity, making them suitable for various applications, from powering forklifts to automobiles and even entire buildings. Although Plug Power is currently unprofitable, its underlying story and positive fiscal trajectory suggest the potential for future profitability by 2026.

SoFi Technologies

SoFi Technologies (NASDAQ: SOFI) is an online-only bank that offers a wide range of traditional banking services, including checking, investing, lending, and insurance. The company has experienced significant growth, with nearly 7 million unique customers as of the end of the third quarter, representing a 47% increase from the previous year.

SoFi Technologies is capitalizing on the changing preferences of consumers, particularly the younger generation, who prefer mobile apps for banking services. The company's revenue is projected to grow by 21% this year, and analysts believe this growth will support a swing to a per-share profit of $0.06. The trajectory of sustained revenue and earnings growth is expected to continue through 2028 and beyond.

The shift towards online banking and the increasing reliance on mobile apps for financial transactions present a significant opportunity for SoFi Technologies to capture a larger market share. While the stock may be volatile, the company's focus on digital banking and its ability to compete with traditional brick-and-mortar banks make it an intriguing investment prospect.


In conclusion, the absolute price level of a stock is a topic of debate among investors. While some argue that higher-priced stocks reflect higher-quality companies, others believe that a stock's price is arbitrary. However, lower-priced stocks can provide an advantage for investors with limited funds, allowing them to purchase more shares.

Rocket Lab USA, Plug Power, and SoFi Technologies are three ownership-worthy stocks that can be purchased for less than $20 per share. Each company operates in a unique industry and has its own growth prospects and risks. It is important for investors to conduct thorough research and consider their own investment goals and risk tolerance before making any investment decisions.

The Smartest Stocks to Buy With $20 Right Now and Hold Forever (2024)


What should I invest in with $20? ›

Best Ways to Invest $20:
  • Purchase Real Estate.
  • Auto Invest with a Robo-Advisor.
  • Buy Stocks with Fractional Shares.
  • Diversify Instantly with ETFs.
  • Invest in Mutual Funds.
  • Compound Your Earnings with DRIPS.
  • Invest in Worthy Bonds.
  • Open a High Yield Savings Account.
Mar 3, 2024

What stocks to buy now and hold long term? ›

7 of the Best Long-Term Stocks to Buy and Hold
StockSectorTrailing 12-month dividend yield*
International Business Machines Corp. (ticker: IBM)Technology3.6%
Abbott Laboratories (ABT)Health care1.9%
Stanley Black & Decker Inc. (SWK)Industrials3.5%
Atmos Energy Corp. (ATO)Utilities2.7%
3 more rows
Apr 15, 2024

What is the smartest stocks to invest in right now? ›

Some of the notable companies included in our list of hot growth stocks to buy are Salesforce, Inc. (NYSE:CRM) and Advanced Micro Devices, Inc. (NASDAQ:AMD), as well as industry giants like NVIDIA Corporation (NASDAQ:NVDA) and Uber Technologies, Inc. (NYSE:UBER), among others listed below.

What is the most profitable stock to buy right now? ›

The 9 Best Stocks To Buy Now
Company (Ticker)Forward P/E Ratio
Citigroup, Inc. (C)8.4
Fidelity National Information Services, Inc. (FIS)15.3
Intuitive Surgical, Inc. (ISRG)60.9
The Kraft Heinz Company (KHC)12.2
5 more rows
Apr 8, 2024

Can I invest with just $20? ›

If you're just getting started investing, you might not have a lot of cash you can put to work. Maybe you only have $20 to invest right now. The good news is that most brokerages have done away with account minimums and commissions, which means you can get started with any amount of money, even $20.

What is the best stock under $20? ›

10 Best Cheap Dividend Stocks to Buy Under $20
StockImplied Upside Over March 20 CloseForward Dividend Yield
Vale SA (ticker: VALE)37.3%14.2%
Energy Transfer LP (ET)2.2%8.1%
Cenovus Energy Inc. (CVE)4%2.2%
Orange SA (ORAN)12%6.5%
6 more rows
Mar 21, 2024

What stock is going to skyrocket? ›

10 Best Growth Stocks to Buy for 2024
StockExpected Change in Stock Price*
Tesla Inc. (TSLA)61%
Mastercard Inc. (MA)14.2%
Salesforce Inc. (CRM)7.2%
Advanced Micro Devices Inc. (AMD)11.3%
6 more rows
Mar 25, 2024

Which stock will boom in 2024? ›

Best Stocks to Invest in India 2024
1.Tata Consultancy Services LtdIT - Software
2.Infosys LtdIT - Software
3.Hindustan Unilever LtdFMCG
4.Reliance Industries LtdRefineries
1 more row
Apr 9, 2024

What are the top 10 stocks to buy right now? ›

10 Best Value Stocks to Buy Now
  • Cisco Systems Inc. (ticker: CSCO)
  • Comcast Corp. (CMCSA)
  • Telus Corp. (TU)
  • Unilever PLC (UL)
  • Sony Group Corp. (SONY)
  • Toronto-Dominion Bank (TD)
  • Solventum Corp. (SOLV)
  • Essential Utilities Inc. (WTRG)
Apr 12, 2024

What stocks will double in 2024? ›

Stocks that will double in 2024
  • Aris Water Solutions, Inc. (NYSE:ARIS)
  • XPeng Inc. (NYSE:XPEV)
  • NIO Inc. (NYSE:NIO)
  • ANI Pharmaceuticals, Inc. (NASDAQ:ANIP)
  • Concentrix Corporation (NASDAQ:CNXC)
  • Fiverr International Ltd. (NYSE:FVRR)
  • Perion Network Ltd. (NASDAQ:PERI)
  • StoneCo Ltd. (NASDAQ:STNE)
Feb 28, 2024

What are strong buy stocks? ›

A strong buy is a recommendation given by analysts for a stock that is expected to dramatically outperform the average market return and/or the return of comparable stocks in the same sector or industry. It represents an analyst's emphatic endorsem*nt of a stock. A strong buy can be contrasted with a strong sell.

What are good cheap stocks to invest in? ›

Best-performing cheap stocks
TickerCompanyPerformance (1 Year)
IBRXImmunityBio Inc206.82%
PLSEPulse Biosciences Inc206.45%
SANASana Biotechnology Inc193.73%
NKTXNkarta Inc183.11%
3 more rows
Apr 2, 2024

What are the best 5 stocks to buy now? ›

Sumeet Bagadia's stocks to buy today
  • 1] LIC Housing Finance: Buy at ₹663.20, target ₹706, stop loss ₹640.
  • 2] SBI: Buy at ₹766, target ₹825, stop loss ₹735.
  • 3] TVS Motor: Buy at ₹1943, target ₹2020, stop loss ₹1905.
  • 4] Larsen & Toubro or LT: Buy at ₹3610, target ₹3770, stop loss ₹3520.
1 day ago

What is the most successful stock of all time? ›

The Best Performing Stocks in History
  • Coca-Cola. (NASDAQ: KO) ...
  • Altria. (NASDAQ: MO) ...
  • (NASDAQ: AMZN) ...
  • Celgene. (NASDAQ: CELG) ...
  • Apple. (NASDAQ: AAPL) ...
  • Alphabet. (NASDAQ:GOOG) ...
  • Gilead Sciences. (NASDAQ: GILD) ...
  • Microsoft. (NASDAQ: MSFT)

Which stock gives highest return in 1 year? ›

1 Year Based Return Stock
S.No.Name1Yr return %
1.Swadeshi Polytex521.12
2.Ksolves India83.92
3.Remedium Life132.03
4.Infronics Sys.75.63
23 more rows

How should I start investing at 20? ›

It's best to start small if you don't have much experience. Fixed income. If you're a more risk-averse investor, fixed-income investments such as bonds, money-market funds or high-yield savings accounts can allow you to ease your way into the investment landscape.

How to invest at 20? ›

Start saving and investing in your 20s by contributing to a retirement plan, investing in index funds and ETFs, automating your investment management with a robo-advisor and increasing your savings rate over time.

What stocks are under $20? ›

9 Best Cheap Stocks to Buy Under $20
Cheap StockPrice-to-Book Ratio*
Hims & Hers Health Inc. (HIMS)6.4
Janus International Group Inc. (JBI)4.6
Macerich Co. (MAC)1.5
Pactiv Evergreen Inc. (PTVE)2
5 more rows
Feb 9, 2024

What are good stocks to buy under $10? ›

Compare the best stocks under $10
CompanySectorMarket Cap
Clarivate PLC (CLVT)Technology$4.67B
iQIYI Inc. (IQ)Communication services$3.93B
PagSeguro Digital Ltd. (PAGS)Technology$3.67B
Fisker Inc. (FSR)Consumer cyclical$52.82M
2 more rows


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