Best stocks under $20 of July 2024 (2024)

Infosys is an Indian company that provides several information technology consulting services around the world, including consulting, engineering, technology and outsourcing. It also provides software solutions for the banking industry.

Infosys may not put up impressive growth numbers or have as much upside as many other tech stocks trading under $20, but the company is consistently profitable and has a leading position in the massive global digital services and consulting markets.

In the most recent quarter, Infosys reported 0.22% year-over-year revenue growth, $959 million in net profit and 28.66% operating margins. The company also reported a record $7.7 billion in large and mega-deal total contract volume in the fourth quarter of 2023, suggesting it is scoring large, impressive customers.

Blue Owl Capital is an alternative investment company that provides businesses with private capital solutions. Its products focus on credit, private equity and private equity real estate.

While Blue Owl has a slim profit margin, it’s nevertheless moving in the right direction and has become more profitable in recent quarters. The company’s shares are up more than 20% year over year, and many analysts recommend buying the stock. It also pays a sizable dividend yield of 2.96%.

Permian Resources is an oil and natural gas company focused on delivering sustainable returns through the responsible acquisition, optimization and development of oil and natural gas properties. Its operations are focused in the Permian Basin, located in western Texas and southeastern New Mexico. Most of the company’s assets are concentrated in the core of the Delaware Basin.

Permian Resources is growing its production numbers. In the third quarter of 2023, total production increased by 4% on a quarterly basis, while average daily crude oil production was up 6% compared to the previous quarter. It also increased average completed and drilled feet per day by 14% and 4%, respectively, compared to the second quarter of 2023. The stock pays a dividend yield of 3.58%, even after its stock price gained more than 25% in the past year.

Vipshop Holdings is a Chinese company that operates the e-commerce website VIP.com. Products include food, clothing, bags and electronics. The company provides special offers and deep discounts on branded products. Vipshop was founded in 2008 and has since become one of the largest e-commerce platforms in China by market cap.

Though VIPS is now selling at around a third of its 2021 peak of about $45 a share, there’s a lot to like about this stock. Its net profit margin has ranged from 5.3% to 7.5% in the past four quarters, with a net income ranging from $1.2 billion to $2.2 billion per quarter. In the most recent quarter, net income was up 32.16% year over year, and revenue was up 9.18% on an annual basis. The company’s earnings yield of 15.4% far outshines its competition, as does its cash flow per share.

iQIYI (formerly QIYI) is a video streaming service that offers TV shows and movies from several Asian countries. It has free video streaming and paid subscription tiers with benefits like the ability to skip ads. iQIYI is partially owned by Chinese tech giant Baidu and headquartered in Beijing.

The company’s revenue increased 1.50% year over year in the most recent quarter. Its operating income margin in the quarter was 9%, more than double its 4% margin in the same period in 2022. Its earnings yield of 10.9% is relatively strong, while its cash flow per share of $1.25 is slightly below the industry average. Still, the stock appears to be undervalued, with many analysts recommending a buy.