3 Stocks Under $20 That Can Double Before the end of 2024

Stocks to buy

After trending lower recently, the S&P 500 index has been sideways for year-to-date. The recent market correction has been driven by potential rate-cut delays and escalated geopolitical tensions. This correction as a good buying opportunity. Undoubtedly, the first stocks to consider are undervalued blue chips, followed by high-quality growth stocks. At the same time, look at stocks under $20 that have a high beta and can deliver quick returns when the market sentiment changes.

My personal view is that tensions will deescalate in the Middle East. Further, rate cuts might be delayed, but expansionary policies are likely before the Presidential elections. The markets are, therefore, possible to stage a comeback.

It’s, therefore, a good time to accumulate. This column focuses on stocks under $20 that are likely to double within the next few quarters.

Kinross Gold (KGC)

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With gold trading near $2,400 an ounce, gold miners will likely report stellar numbers in the next few quarters. Kinross Gold (NYSE:KGC) is an undervalued gold miner that trades at a forward price-earnings ratio of 17 and offers a dividend yield of 1.87%. In my view, KGC stock will likely double before the year’s end.

Note that the first-rate cut is likely before the Presidential elections. Therefore, the trend for gold will remain bullish. Further, high geopolitical tensions will support an upside in gold. Last year, Kinross reported operating cash flow of $1.7 billion.

OCF will likely be more than $2 billion with a higher realized gold price. Further, with a liquidity buffer of $1.9 billion, Kinross is well-positioned to increase dividends and aggressively invest in exploration. Considering the financial flexibility, potential acquisition is also on the cards.

Riot Platforms (RIOT)

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Riot Platforms (NASDAQ:RIOT) is possibly among the most undervalued Bitcoin (BTC-USD) miners to buy. At $8.3, RIOT stock is poised to double in the next few months. Of course, the underlying assumption is that Bitcoin trends higher after the halving event. Impending rate cuts are also a positive catalyst for Bitcoin.

One reason to like Riot is its strong fundamentals. As of December, the ompany had a cash buffer of $290 million. Further, the value of Bitcoin holdings was $309 million. With a zero-debt balance sheet, Riot has ample flexibility for aggressive investments.

At the end of 2023, Riot reported a hash rate capacity of 12.4EH/s. By the end of the year, the company expects to increase capacity to 28.8EH/s and further to 38.1EH/s by 2025. The long-term target is to boost capacity to 100EH/s. Therefore, with massive expansion plans, Riot is positioned for stellar revenue and cash flow upside.

EHang Holdings (EH)

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I am bullish on some of the best flying car stocks as companies move toward commercialization. EHang Holdings (NASDAQ:EH) is among the attractive names for a big rally. It’s worth noting that EH stock has trended higher by 50% in the last 12 months. However, considering the growth potential in the next few years, the valuation remains attractive.

In an important development, the production certificate for its EH216-S eVTOL was obtained from the Civil Aviation Administration of China. This paves way for mass production of the eVTOL. It’s worth noting that EHang has set a price of $410,000 for its eVTOL sales outside China.

An important point is that the company has set up an urban air mobility center in Japan and Spain. Further, the company has conducted thousands of trials in countries in Asia and Europe. The stage is set for massive expansion and order intake in the next 12 to 24 months.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Faisal Humayun is a senior research analyst with 12 years of industry experience in the field of credit research, equity research and financial modeling. Faisal has authored over 1,500 stock specific articles with focus on the technology, energy and commodities sector.

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