In this article we will take a look at seven best undervalued stocks to buy now under $20.
In today’s highly uncertain global market environment, investors are understandably looking for stability and value. With geopolitical tensions on the rise, oil prices spiking, and inflation still an ongoing concern, the pressure is on to find stocks that not only offer strong fundamentals but also trade at reasonable valuations. That’s where undervalued stocks under $20 come into play, especially those with solid financials, sustainable earnings, and a forward thinking outlook.
Recent developments, like Israel's airstrikes on Iran, have rattled global markets. Oil surged nearly 13% in response, reported Bloomberg, threatening to derail the fragile balance central banks have been trying to maintain post pandemic. Higher oil prices and trade tensions could fuel another round of inflationary pressures, pushing the Fed and other central banks into a difficult corner. While some investors are scrambling to hedge against volatility, smart investors are turning their focus to value plays, stocks that are currently overlooked but have room to run.
These market dislocations, as disruptive as they are, create opportunities. As the broader indexes like the S&P 500 and Nasdaq take a breather and high flying tech names like Nvidia and Tesla lose momentum, smaller cap and mid cap stocks trading at a discount look more attractive. Especially those with strong fundamentals and solid earnings, but currently undervalued due to broader market fears rather than company specific issues.
One key metric savvy investors are watching is the forward price to earnings ratio (P/E), an indicator of what investors are willing to pay today for a dollar of future earnings. Many high quality stocks in the sub $20 range are currently trading at forward P/Es well below the market average. In fact, some sit around 13 or even lower, signaling potential upside once the dust settles.
This article rounds up seven of the best undervalued stocks trading under $20 that stand out not just because of their low price tags, but because of their strong balance sheets, reasonable debt levels, and resilience in the face of market turmoil. Whether you are looking to hedge against inflation, capitalize on volatility, or simply build a long term value focused portfolio, these picks offer compelling upside for patient investors. Let’s dive into the list and see which names make the cut.
To prepare the list of seven best undervalued stocks to buy now, we we ranked the twenty most undervalued stocks that trade on stock exchanges in the U.S. by their forward P/E ratio as of June 13 and picked out the top firms. All the stocks have a debt to equity ratio of less than 0.2 and a PEG ratio of less than 1 as of June 13. The list is arranged in descending order of the forward Price/Earnings ratio each firm holds.
07. Viemed Healthcare, Inc. (NASDAQ:VMD)
Forward P/E ratio: 13.84
Viemed Healthcare, Inc. (NASDAQ:VMD) might not be on every investor’s radar, but it absolutely deserves a spot on the list of undervalued gems under $20. Specializing in home based medical equipment and post acute respiratory care services, Viemed delivers crucial support to patients with conditions like COPD through non invasive ventilation, percussion vests, and more.
From a fundamentals perspective, the stock checks all the right boxes. As of June 13, it trades with a forward P/E of just 13.84, suggesting the market hasn’t fully priced in its growth potential. It also boasts an impressive PEG ratio of 0.73, indicating growth at a bargain, and a debt to equity ratio of only 0.05, highlighting a strong balance sheet with minimal financial risk.
So, what’s driving the optimism? Viemed Healthcare, Inc. (NASDAQ:VMD) just posted an impressive Q1 2025, outperforming expectations and tightening its full year guidance upward. Its ventilation segment, which makes up 54% of revenue, grew 10% year over year, with new patient starts up 9% sequentially. Even more impressive, this marked the 16th consecutive quarter of vent patient growth, thanks to a revamped sales strategy rolled out last year.
But Viemed isn’t just a one trick pony. The sleep therapy segment surged 46% year over year, while the resupply and staffing services also delivered strong gains. The company’s diversified approach, targeting underserved populations with personalized in home care, is exactly what the evolving U.S. healthcare landscape is moving toward.
On the regulatory front, Viemed Healthcare, Inc. (NASDAQ:VMD) stands out by actively engaging with policymakers to shape smarter, more data driven healthcare rules. Recent legislative wins in Arkansas and other states support broader access to the company’s core therapies, validating its model and future prospects.
To top it off, Viemed Healthcare, Inc. (NASDAQ:VMD) recently acquired Lehan’s Medical Equipment, giving it a strategic foothold in the Chicago market and new growth channels in women’s health and sleep care.
In short, Viemed Healthcare, Inc. (NASDAQ:VMD) combines financial strength, steady growth, and regulatory momentum, all wrapped in an undervalued stock under $20. For long term investors looking for resilience and upside, VMD looks like a smart bet.
06. Coeur Mining, Inc. (NYSE:CDE)
Forward P/E ratio: 13.81
Coeur Mining, Inc. (NYSE:CDE) is an under the radar precious metals producer with a compelling value proposition. Operating across the U.S., Canada, and Mexico, Coeur explores and mines gold, silver, zinc, and lead through its diversified asset base. As of June 13, the stock is trading with a forward P/E ratio of just 13.81, a PEG ratio of 0.50, and a remarkably low debt to equity ratio of 0.19, making it a prime pick for any list of the 7 Best Undervalued Stocks to Buy Now Under $20.
Why does Coeur Mining, Inc. (NYSE:CDE) stand out right now? For starters, the company just posted its fourth consecutive quarter of positive earnings per share and third consecutive quarter of positive free cash flow. This marks a major turnaround from a few quarters ago when it was reporting negative $300 million in free cash flow and EBITDA of just $100 million. Now, with full year adjusted EBITDA expected to exceed $700 million and free cash flow forecasted to top $300 million, the transformation story is well underway.
One of the biggest tailwinds is the successful integration of its newly acquired Las Chispas mine, which produced high grade silver and gold at exceptionally low costs ($744/oz gold and $8.38/oz silver). Alongside the continued ramp up at its expanded Rochester operation and consistent performance from Kensington, Palmarejo, and Wharf, Coeur now boasts a balanced portfolio with no single mine contributing more than 25% of total revenue. This spreads operational risk and enhances predictability.
Financially, Coeur is aggressively deleveraging. In Q1 2025 alone, it eliminated nearly $130 million in debt, pushing it closer to a net leverage ratio of zero. This has been made possible not only by operational improvements but also by rising gold and silver prices, which the company is well positioned to capitalize on.
Further upside lies in its robust exploration program. The company is investing $77–93 million in drilling this year, already yielding promising results. Most notably, a new high grade silver gold vein discovery at Las Chispas shows great potential. With multiple exploration zones showing early success and additional high prospect ground acquired, Coeur’s future production capacity could grow meaningfully.
Simply put, Coeur Mining, Inc. (NYSE:CDE) combines disciplined financial management, strong free cash flow, low debt, and exciting exploration upside. All of this is available at a share price under $20.
05. DLocal Limited (NASDAQ:DLO)
Forward P/E ratio: 13.23
DLocal Limited (NASDAQ:DLO) is a global payments platform that’s quietly becoming a fintech force across emerging markets. And with its forward P/E of 13.23, PEG ratio of just 0.62, and a remarkably low debt to equity ratio of 0.01 as of June 13, the stock screams undervalued. Trading under $20, DLocal is a compelling pick for investors seeking growth at a reasonable price.
The company’s Q1 2025 results show why it's worth watching. Total Payment Volume (TPV) surged to $8.1 billion, up 53% year over year, or an even more impressive 72% in constant currency. This was DLocal’s second consecutive quarter with TPV growth above 50%, a testament to the strength of its platform and merchant relationships. In fact, its net retention rate hit 144%, highlighting how existing customers are spending more through the platform.
Revenue came in at $217 million, a year over year jump of 18% (36% in constant currency), while gross profit soared to $85 million, up 35% year over year. The company also maintained strong operating discipline, with an adjusted EBITDA to gross profit ratio of 68%, underscoring its ability to scale profitably.
One of DLocal Limited (NASDAQ:DLO) greatest strengths is its geographic and sectoral diversification. From Latin America to Africa and Asia, the company’s cross border payments are booming, driven by sectors like remittances, streaming, and e-commerce. Key partnerships with global platforms like Temu, Zepz, and Rappi are driving growth across 15+ markets.
Behind the scenes, DLocal Limited (NASDAQ:DLO) is also innovating with AI and automation. Smarter fraud detection, improved conversion rates, and faster merchant onboarding are just some of the ways it's enhancing performance. These investments are expected to reduce hiring needs and boost long term efficiency.
With robust financials, strong free cash flow (85% conversion), and accelerating global expansion, DLocal Limited (NASDAQ:DLO) is checking all the boxes. For under $20 a share, it’s a rare fintech with real growth, solid margins, and upside potential, exactly the kind of stock that belongs in any undervalued growth portfolio.