12 Best Nasdaq Stocks Under $20 to Buy Now

4. Lyft Inc. (NASDAQ:LYFT)

Current market price: $11.27

Upside Potential: 42%

Number of Hedge Fund Holders: 55

Lyft Inc. (NASDAQ:LYFT) is a leading ride-sharing platform that connects riders with drivers through its mobile app. Competing with Uber, Lyft provides transportation solutions, including car rides, bike-sharing, and scooter rentals, across various U.S. and Canadian cities.

Lyft Inc. (NASDAQ:LYFT) reported its Q4 2024 results on February 11. The results were healthy but were seen as unexciting by street, along with its muted guidance. Q4 revenue came in at $1.6 billion, up 27% year-over-year and gross Bookings were $4.3 billion, up 15% year over year. Net income also improved substantially to $61.7 million, compared to a net loss of $26.3 million in year ago quarter. For Q1 2025, the company guided for gross bookings of around $4.05 billion to $4.20 billion, implying a growth of around 10% to 14% year-over-year. The management also highlighted tougher pricing environment in the U.S. market.

The soft guidance disappointed many analysts, particularly in view of the intensifying competition, and resulted in many analysts lowering their price targets. However, Brad Erickson from RBC Capital reiterated a Buy rating on the shares with a price target of $21. The consensus still remains modestly positive with 1-year median price target of $16, implying a 42% upside potential.