The Nasdaq has had a challenging start to 2025, with the index dropping nearly 12% YTD, as of March 13. March 10 marked its worst single-day decline in almost two years, plunging 4% as investor concerns over escalating trade tensions fuelled fears of a potential U.S. recession. Given that technology companies make up approximately 60% of the Nasdaq, the sector’s heightened volatility has played a significant role in the index’s decline. Consumer discretionary stocks, the second-largest sector in the Nasdaq, account for roughly 20% of its total weight. This heavy concentration in growth-driven industries makes the Nasdaq a key indicator of the performance of both the technology sector and high-growth stocks.
A closer look at sector exposure provides further insight into recent market movements. On March 7, Reuters cited a Goldman Sachs report highlighting that hedge funds specializing in stock picking and multi-strategy investing saw nearly half of their annual gains erased in a single day following a tech-driven selloff on March 6. The most significant declines were concentrated in sectors where hedge funds had high exposure, including technology, media, and telecommunications. Year-to-date, the technology sector has been the second-worst performer in the S&P 500, falling 8%, while consumer discretionary stocks have led declines with a drop of over 9%.
Market volatility is likely to persist as economic indicators continue to send mixed signals. Treasury Secretary Scott Bessent recently stated that the U.S. economy may undergo a “detox period” as the new administration implements government spending cuts. However, he later clarified that a recession is not an inevitable outcome. With policy changes creating uncertainty, market turbulence could remain a recurring theme.
John Belton, a portfolio manager for growth equities at Gabelli Funds, shared his perspective on Nasdaq’s recent volatility during an appearance on CNBC’s ‘The Exchange’. He described the current market sentiment as a “buyers’ strike,” driven by uncertainty over policy direction from the White House. According to Belton, Wall Street is hesitant to take on additional risk in such an unpredictable environment. Despite the recent downturn, he emphasized that the fundamentals of major mega-cap technology companies remain strong. He also noted that Nasdaq’s exceptional performance in the past two years—gaining over 40% in 2023 and more than 30% in 2024—set high expectations among investors. The current correction, he suggests, is a natural reaction to those lofty expectations, coupled with the transition in political leadership.
While Nasdaq has delivered impressive returns in recent years and remains home to some of the world’s leading technology giants, it also presents compelling opportunities beyond large-cap tech. Investors looking for promising yet lower-priced stocks, particularly those trading under $20, may find attractive options within the index. These stocks often belong to companies with significant growth potential, making them appealing to both institutional and retail investors seeking high-upside investments at a relatively affordable price point.
To help navigate these opportunities, we have compiled a list of 12 Nasdaq stocks that could be worth considering in the current market environment. Let’s take a closer look at the 12 best Nasdaq stocks under $20 to buy now.
Photo by Pascal Bernardon on Unsplash
Our methodology
To determine the 12 best Nasdaq stocks under $20 to buy, we conducted a screening for Nasdaq-listed companies with a share price below $20 and a market capitalization exceeding $2 billion. We applied an additional criterion, considering only those stocks with an expected upside of at least 10%. Finally, we ranked the top 12 stocks that were the most widely held by hedge funds in ascending order of hedge fund holders, based on data from Insider Monkey’s Q4 2024 database of hedge funds.
Note: All pricing data is as of market close on March 13.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best NASDAQ Stocks Under $20 to Buy Now
12. Rivian Automotive Inc. (NASDAQ:RIVN)
Current market price: $10.61
Upside Potential: 32%
Number of Hedge Fund Holders: 40
Rivian Automotive Inc. (NASDAQ:RIVN) is an electric vehicle (EV) manufacturer specializing in adventure-oriented trucks and SUVs, as well as software and services that address the entire lifecycle of the vehicle. The company also partners with Amazon to produce electric delivery vans, reinforcing its role in the commercial EV segment.
In a report released in late-February, Canaccord Genuity analyst George Gianarikas remained optimistic about Rivian Automotive Inc. (NASDAQ:RIVN)’s future, highlighting key financial improvements. The company reported its first-ever gross margin positive quarter in Q4 2024, with management expecting this trend to continue into 2025. Profitability targets remain on track, with EBITDA turning positive by 2027, supported by the highly anticipated R2 launch in early 2026 and increasing production volumes. The analyst sees Rivian as the strongest contender to emerge as the West’s second major EV player alongside Tesla.
He also views Rivian Automotive Inc. (NASDAQ:RIVN)’s partnership with Volkswagen as a significant catalyst, providing crucial capital, scaling opportunities, and a competitive edge in next-generation vehicle platforms. However, uncertainties remain, particularly regarding potential changes to Department of Energy (DOE) loan commitments under a new administration. According to him, investors will need clarity on Rivian’s plans to fund its Georgia facility. Despite these challenges, the analyst maintains a bullish stance and reiterated a Buy rating on Rivian Automotive Inc. (NASDAQ:RIVN) with a $23 price target, significantly above the consensus 1-year median price target of $14.
11. ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD)
Current market price: $16.78
Upside Potential: 52%
Number of Hedge Fund Holders: 40
ACADIA Pharmaceuticals Inc. (NASDAQ:ACAD) is a biopharmaceutical company dedicated to developing and commercializing innovative therapies for neurological and central nervous system disorders.
For 2024, company sales surged 32% year-over-year to $958 million. Around 64% of total sales came from NUPLAZID ($609.4 million) and 36% came from DAYBUE. For FY 2025, the company guided for total revenue of $1.03 to $1.095 billion, which included DAYBUE net sales guidance of $380 to $405 million and NUPLAZID net sales guidance of $650 to $690 million.
In a February 27 report, Needham analyst Ami Fadia reaffirmed a Buy rating on ACADIA Pharmaceuticals with a $28 price target, citing strong growth indicators. The company’s earnings aligned with market expectations, reflecting financial stability. Management’s focus on brand development and international expansion signals a strategic growth approach. Key positives include improved commercial metrics for Daybue, with lower discontinuation rates and higher average dose usage. Additionally, upcoming 2026 pipeline data readouts add long-term growth potential, reinforcing ACADIA’s investment appeal.
10. AvePoint Inc. (NASDAQ:AVPT)
Current market price: $13.79
Upside Potential: 34%
Number of Hedge Fund Holders: 40
AvePoint Inc. (NASDAQ:AVPT) is a leading provider of cloud-based data management solutions, specializing in SaaS applications for Microsoft 365, SharePoint, and other enterprise collaboration platforms. Its software helps organizations manage data security, compliance, and migration in cloud environments.
In its February Investor Presentation, AvePoint Inc. (NASDAQ:AVPT) highlighted a large addressable market of $80.4 billion in 2024, which is expected to grow to $136.5 billion by 2028, at a compounded annual growth rate of over 14%. Apart from a stronger topline growth, the company is focussing on improving its operating margin to 20%-25% over the long-term, from the current ~14% level.
While Citi analyst Fatima Boolani reduced AvePoint Inc.’s (NASDAQ:AVPT) price target from $18 to $16 and maintained a Neutral rating, she remained positive about the company’s prospects. The analyst noted that the company’s investor day provided greater clarity on its upcoming Singapore dual-listing, which could serve as a distinctive catalyst for attracting more institutional investors. Her cautious stance stemmed from the intensifying competition in the space, while the price target adjustment reflected her updated earnings estimates.
9. Amicus Therapeutics Inc. (NASDAQ:FOLD)
Current market price: $8.81
Upside Potential: 93%
Number of Hedge Fund Holders: 40
Amicus Therapeutics Inc. (NASDAQ:FOLD) is a biotechnology firm dedicated to the discovery, development, and delivery of novel treatments for rare diseases. The company currently markets two therapies: Galafold, an oral monotherapy for Fabry disease patients with amenable genetic variants, and Pombiliti + Opfolda, a two-component treatment for adults with late-onset Pompe disease.
Amicus Therapeutics Inc. (NASDAQ:FOLD) aims to achieve substantial long-term revenue growth, with projections to exceed $1 billion in total sales by 2028. In FY 2024, the company experienced a 33% increase in net product sales, totaling $528.3 million. While Galafold accounts for approximately 87% of current sales, Pombiliti + Opfolda has become the primary growth driver, with sales surging over sixfold in 2024.
On February 23, Leerink Partners analyst Joseph Schwartz reiterated a Buy rating for Amicus Therapeutics (NASDAQ:FOLD) with a $17 price target, citing strong growth potential. Despite a slowdown in patient additions due to seasonal factors and a lack of new country launches, the company continues to report robust sales for Pombiliti and Opfolda. Amicus is poised for market expansion, with recent approval in Australia and anticipated approvals in Japan and Canada, as well as plans to enter up to 10 new countries. Joseph also noted that management remains confident, as they maintained revenue growth projections for 2025 and expected positive GAAP net income in the second half of the year. These factors supported his bullish outlook on the stock.
8. Freshworks Inc. (NASDAQ:FRSH)
Current market price: $14.35
Upside Potential: 53%
Number of Hedge Fund Holders: 41
Freshworks Inc. (NASDAQ:FRSH) provides AI service software designed to enhance customer and employee experiences. It offers a software-as-a-service platform that allows small and medium-sized businesses to support customers through email, phone, website, and social networks. The company provides multi-product support, a knowledge base, self-service portal, community forums, and various tools to leverage mainstream social media for customer support.
Freshworks Inc. (NASDAQ:FRSH) reported strong Q4 2024 results on February 11. Revenue for the quarter increased by 22% year-over-year to $195 million. Adjusted EPS rose by 75% to $0.14 due to the expansion in operating margin to 20.7% from 7.2% in the same quarter of the previous year. Buoyed by the strong results, the company CEO noted:
“Companies are leaving legacy vendors and coming to Freshworks for our uncomplicated, modern employee and customer experience service solutions.”
Following the results, Needham analyst Scott Berg raised the price target from $20 to $25 and reiterated a Buy rating on Freshworks Inc. (NASDAQ:FRSH). According to the analyst, the company delivered strong Q4 results, with Device42 (its IT asset management subsidiary) contributing to higher win rates. However, foreign exchange (FX) pressures slightly impacted revenue and led to fewer large customer additions. Despite this, overall customer growth reached a four-year high, driven by a surge in free-to-paid conversions, boosting monetization.
7. Huntington Bancshares Inc. (NASDAQ:HBAN)
Current market price: $14.28
Upside Potential: 33%
Number of Hedge Fund Holders: 44
Huntington Bancshares Inc. (NASDAQ:HBAN) is a holding company and, through subsidiaries, operates a regional bank that offers commercial and consumer banking, wealth management, and investment services. With a strong footprint in the Midwest, the bank serves individuals, businesses, and government entities.
In its March 5 Financial Institutions presentation, Huntington Bancshares Inc. (NASDAQ:HBAN) highlighted its industry-leading organic loan growth, which exceeded 7% in Q4 2024, significantly outpacing the peer median of -2.8%. Additionally, new strategic initiatives accounted for 39% of the bank’s total loan growth in FY 2024. In its Q4 2024 earnings report released in mid-January, the bank posted a 25% year-over-year increase in adjusted EPS to $0.34, while return on average tangible common equity remained strong at 16.4%.
On March 13, a Morgan Stanley analyst reaffirmed an Overweight rating on Huntington Bancshares Inc. (NASDAQ:HBAN) but lowered the stock’s price target from $22 to $20. The revision was attributed to Morgan Stanley’s decision to trim its estimates for mid-cap banks across North America due to heightened economic uncertainty and a more subdued growth outlook. The firm noted that trade and tariff policy shifts are unfolding more rapidly and aggressively than previously expected. Additionally, slower economic growth and increased policy uncertainty have created headwinds for the sector, prompting multiple price target reductions within the group.
6. Viatris Inc. (NASDAQ:VTRS)
Current market price: $8.98
Upside Potential: 17%
Number of Hedge Fund Holders: 48
Viatris Inc. (NASDAQ:VTRS) is a global pharmaceutical company focused on the development, manufacturing, and distribution of a broad portfolio of branded, generic, and over-the-counter medicines across multiple therapeutic categories.
For the fourth quarter of 2024, Viatris Inc. (NASDAQ:VTRS) reported revenue of $3.5 billion, reflecting a 1% increase on an adjusted basis. Full-year revenue grew by 2% to reach $14.7 billion, while adjusted earnings per share (EPS) came in at $2.65, marking an 8% decline year-over-year. Notably, the company generated $582 million in new product revenue during 2024, underscoring its ability to drive innovation. Additionally, Viatris successfully repaid $3.7 billion in debt over the fiscal year. However, in a setback, the company received a warning letter and import alert from the U.S. Food and Drug Administration (FDA) in December 2024 regarding its manufacturing facility in Indore, India. As a result, the company estimates a negative impact of approximately $500 million on total revenue for 2025 and a $385 million hit to adjusted EBITDA.
Following these developments, market sentiment has turned more cautious, reacting negatively to both the financial results and the FDA notice. Despite this, Jefferies analyst Glen Santangelo maintained a Buy rating on Viatris Inc. (NASDAQ:VTRS), though he revised his price target downward from $15 to $13. He acknowledged that while the company’s fundamentals continue to strengthen—anticipating 3% organic growth in FY25—its lowered EBITDA guidance has “overshadowed” the improvements in operational performance.
5. ZoomInfo Technologies Inc. (NASDAQ:ZI)
Current market price: $10.50
Upside Potential: 14%
Number of Hedge Fund Holders: 51
ZoomInfo Technologies Inc. (NASDAQ:ZI) is a business intelligence and data analytics company that provides go-to-market solutions for enterprises. Its AI-powered platform offers real-time insights into customer data, helping sales and marketing teams improve lead generation, customer engagement, and revenue growth.
Jefferies analyst Surinder Thind reaffirmed his Buy rating on ZoomInfo Technologies Inc. (NASDAQ:ZI) in a March 11 report. Despite a slight downward revision in the 2025 adjusted EPS estimate, the analyst found the company’s valuation attractive at 4.5x EV/Revenue. According to him, a key growth driver has been the CoPilot product, which exceeded expectations and contributed in boosting net revenue retention, particularly among larger clients receptive to upselling. Additionally, CoPilot has helped attract new customers, with a significant portion of adopters being first-time users.
While macroeconomic uncertainty persists, the analyst projected mid- to high-single-digit growth for 2026, which could drive the stock higher. Although challenges remain, especially among smaller clients, management expects conditions to improve, with upcoming product launches offering further upsell opportunities. Given these factors, the analyst remained optimistic about the company’s prospects and upholds a Buy rating with a $15 price target.
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.
3. American Airlines Group Inc. (NASDAQ:AAL)
Current market price: $10.67
Upside Potential: 87%
Number of Hedge Fund Holders: 59
American Airlines Group Inc. (NASDAQ:AAL) is a leading network air carrier that provides scheduled air transportation services for passengers and cargo through its hubs across the U.S. and partner gateways.
On March 11, American Airlines Group Inc. (NASDAQ:AAL) released an updated financial and operational outlook for the first quarter of 2025. The company acknowledged that the revenue environment has been weaker than initially projected in its January guidance, primarily due to the impact of Flight 5342 and a slowdown in the domestic leisure segment, particularly in March. As a result, total revenue for Q1 is now expected to remain roughly flat compared to the same period in 2024—a downward revision from the previously forecasted 3%-5% growth. Additionally, its adjusted loss per diluted share is now estimated to be between $0.60 and $0.80, a more pessimistic outlook compared to the earlier projected loss range of $0.20 to $0.40 per share.
Despite this revision, Citi analyst Stephen Trent reaffirmed a Buy rating on American Airlines Group Inc. (NASDAQ:AAL) on March 12, maintaining a price target of $21.50. While acknowledging the weaker revenue outlook for the first quarter, driven by soft domestic demand and external factors such as tariffs and weather disruptions, he remained optimistic about the airline’s medium-term growth potential. The analyst highlighted strong international premium travel demand, increasing loyalty revenue, and strategic initiatives to re-engage corporate clients as key strengths. He also noted that the company’s minimal fleet renewal needs and expectations of solid co-branded card revenue by 2026 reinforce the bullish stance. Although the stock was recently removed from Citi’s Focus List, its projected 72% upside potential supported the reaffirmed Buy rating.
2. Warner Bros. Discovery Inc. (NASDAQ:WBD)
Current market price: $9.89
Upside Potential: 42%
Number of Hedge Fund Holders: 64
Warner Bros. Discovery Inc. (NASDAQ:WBD) is a global media and entertainment company. The company creates and distributes a portfolio of content and products across television, film, streaming, interactive gaming, publishing, themed experiences, and consumer products. Some of its brands include Discovery Channel, Max, CNN, DC Studios, TNT Sports, HBO, Food Network, and Warner Bros. Motion Picture Group.
The company reported its Q4 2024 results on February 27, where the most noticeable metric was an increase of 6.4 million global subscribers in Q4, to reach total global Direct-to-consumer (D2C; streaming business) subscribers to 116.9 million. Overall revenue came in at $10.0 billion, down 1% year-over-year including currency impact (ex-FX). On the other side, total adjusted EBITDA increased 11% year-over-year to $2.7 billion, and reported net income was a loss of around $500 million, which was weaker-than-expected.
Growth outlook for Warner Bros. Discovery Inc. (NASDAQ:WBD) looks healthy. The company is focussing on improving its D2C operating profit margin and expanding its international market, especially with the international launch of its streaming service, Max. It also aims to reach 150 million D2C subscribers by the end of 2026.
On March 5, a Citi analyst increased the price target for Warner Bros. Discovery Inc. (NASDAQ:WBD) from $13 to $15 while maintaining a Buy rating. The analyst expects sentiment around the company to improve further, particularly as industry consolidation gains momentum in the latter half of 2025 and into 2026.
1. Core Scientific Inc. (NASDAQ:CORZ)
Current market price: $8.66
Upside Potential: 125%
Number of Hedge Fund Holders: 66
Core Scientific Inc. (NASDAQ:CORZ) operates large-scale, purpose-built facilities for digital asset mining and plays a pivotal role in blockchain infrastructure, software solutions, and related services. The company utilizes its extensive fleet of mining machines to generate bitcoin for its portfolio while also providing hosting services for major bitcoin mining clients.
In its February production and operations update, Core Scientific Inc. (NASDAQ:CORZ) reported generating 215 bitcoin from its proprietary fleet of miners (a large network of computing machines). By the end of the month, the company was operating approximately 159,000 owned bitcoin miners, with around 96% actively running in its data centers. Additionally, through its data center hosting services, customer-owned bitcoin miners collectively earned an estimated 16 bitcoin during the month. In February, Core Scientific Inc. (NASDAQ:CORZ) also announced a $1.2 billion expansion deal with CoreWeave to enhance its data center capacity. This agreement is projected to drive the company’s total expected revenue to $10.2 billion over a 12-year contract period.
On March 11, H.C. Wainwright analyst Kevin Dede reaffirmed a Buy rating on Core Scientific Inc. (NASDAQ:CORZ) with a price target of $17. His positive outlook is fueled by the company’s strategic positioning and growth potential, particularly in light of its partnership with CoreWeave, which recently secured a $12 billion agreement with OpenAI. The analyst noted that this collaboration underscores Core Scientific’s essential role in expanding CoreWeave’s high-performance computing capabilities. Furthermore, CoreWeave’s upcoming IPO at a strong valuation indicates additional growth opportunities, indirectly benefiting Core Scientific. Despite existing challenges, the company’s robust execution and transition toward a stable HPC revenue model support the positive rating. The analyst further added that a potential bitcoin price rebound and customer diversification further strengthen its growth outlook.
While we acknowledge the potential of CORZ to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CORZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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