7 Stocks to Buy for Less Than $20

After a more than decade-long bull market rally, some of the more popular stocks to buy are getting fairly pricey for the average retail investor. Alphabet (GOOGL) at about $1,500 per share, Amazon.com (AMZN) topping $2,100 and Tesla (TSLA) around $800 per share are just three examples of companies that have risen so high even a single share of stock can be expensive. While inexpensive stocks aren't

always a value, some smaller retail investors may prefer investing in quality stocks that won’t break the bank. Here are seven stocks to buy with share prices less than $20, according to CFRA.

Barclays (BCS) is a major European bank focused on U.K. retail and commercial banking. As difficult as the low interest-rate environment has been for U.S. banks, rates in Europe have been even lower, even dipping into negative territory in some instances. In addition, Brexit confusion has made things especially hard for U.K. banks. Analyst Firdaus Ibrahim says that despite its struggles, Barclays has maintained a

CET1 capital ratio within its target range and should be able to continue to pay its 3.9% dividend. CFRA has a “strong buy” rating and $11 price target for BCS stock.

Barclays

Cleveland-Cliffs (CLF) is a mining company that supplies iron ore pellets to the U.S. steel industry. Analyst Matthew Miller says the combination of impressive free cash flow and reliable long-term contracts makes Cleveland-Cliffs a solid bet for investors. In December, Cleveland-Cliffs announced a $1.1 billion buyout of steel producer AK Steel Holding Corp. (AKS) that is expected to close in the first half of 2020. Miller says the deal will be

leverage-neutral factoring in synergies and will be accretive to earnings and cash flow in year one. CFRA has a “strong buy” rating and $9 price target for CLF stock.

Cleveland-Cliffs

Cabot Oil and Gas (COG) is primarily a natural gas producer focused on Appalachia and Eagle Ford. Cabot shares have been under pressure in the past year as natural gas prices plummeted, but analyst Stewart Glickman says Cabot is well-positioned to outperform its peer group in organic cash generation over the next three years. Glickman says a warm winter coupled with pressured liquid natural gas prices in Asia could continue to weigh on

export demand in the near term, but Cabot's spending cuts should keep its balance sheet healthy while investors ride out the downturn. CFRA has a “buy” rating and $18 price target for COG stock.

Cabot Oil and Gas Corp.

ING (ING) is a Dutch bank with a focus on European retail and global commercial banking. Ibrahim says ING is facing many of the same headwinds as Barclays, but ING has superior profitability relative to peers and even has a higher return on equity than cost of equity. In addition, he says ING’s relatively high CET1 ratio and low cost-to-income ratio highlight its market leadership position. Ibrahim is projecting low single-digit annual

revenue growth over the next two years due in large part to rising commission income. CFRA has a “strong buy” rating and $14 price target for ING stock.

ING

General Electric (GE) investors have had a forgettable three years that have included a 54% stock decline, the near total elimination of its dividend, an accounting investigation by the U.S. Securities and Exchange Commission and displacement from the Dow Jones Industrial Average after more than 100 years in the index. GE stock has come back to life in 2020 after the company issued industrial free cash flow

guidance that exceeded analyst expectations, and analyst Jim Corridore says GE is finally on the right trajectory. CFRA has a “buy” rating and $14 price target for GE stock.

General Electric Co.

Vodafone (VOD) is an international telecommunications giant, with roughly 450 million fixed line and mobile customers in countries such as Germany, Italy and Spain. Analyst Adrian Ng says Vodafone’s diverse business profile has the company well-positioned to outperform, and its cost savings initiative is making good progress. Margins are up for four consecutive years, and the

company’s cloud and hosting segment has been a particularly strong growth source. Like many of its telecom peers, Vodafone also pays an impressive 4.9% dividend. CFRA has a “strong buy” rating and $26 price target for VOD stock.

Vodafone Group

Ford (F) shares got hammered after the company reported $1.7 billion in fourth-quarter losses and fell short of Wall Street expectations with its 2020 guidance. However, analyst Garrett Nelson doubled down on his bullish outlook for Ford following the report and says the company is a long-term value play paying a reliable 7.2% dividend. Nelson says the launch of new vehicle brands, including the Mustang Mach-E, the 2021 Bronco and the Lincoln

electric vehicle, could serve as bullish catalysts and help improve investor sentiment. CFRA has a “buy” rating and $10 price target for F stock.

Ford

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