In this article, we will navigate through the US stock market alongside respective sectors after the elections while discussing the 12 best stocks under $25 to invest in right now.
A View of the US Stock Market Post-Election
As reported by NPR, the Dow Jones Industrial Average soared to a record high, and so did the Nasdaq and the S&P 500, after Donald Trump’s victory in the 2024 presidential election. Wall Street investors consider this victory beneficial for business interests. While businesses have been victims of excessive regulations under the Biden administration, Trump is expected to ease restrictions and lower taxes. Investors were also glad to see the timely results of the election. Commenting on the scenario, Adam Turnquist, chief technical strategist at LPL Financial, stated:
“The market’s not only welcoming a Trump victory, but [also] the decisiveness of the victory. The clouds of uncertainty have really parted”
With shareholders expecting lighter government oversight of the financial sector, the sector climbed 6.16% and emerged as the best-performing of the eleven major S&P 500 sectors. The S&P 500 bank index was up 10.68%, posting its largest daily jump in two years. Companies issuing credit cards performed especially well.
A particular sector that appeared bright after Trump’s win was crypto. The price of Bitcoin rose above $80,000 for the first time ever after the win. Other cryptocurrencies such as dogecoin which is the favorite coin of Elon Musk, a strong Trump supporter, are also posting gains, as reported by BBC. Regarding the future outlook for Bitcoin, Bitwise’s Matt Hougan told CNBC that there is a clear path right up to $100,000 by 2024’s end while $200,000 is completely reasonable for 2025 considering that the trend is up and is going to stay intact for a while.
Simultaneously, the conventional energy sector surged keeping in mind the new President’s goal to boost fossil fuel production. However, the clean energy sector suffered with at least half a dozen developers putting projects on hold as many projects await more clarity from the new administration. The new President had stated that he would pull back the unspent funds from Biden’s climate law, calling it a ‘green new scam’. While Trump’s win has been deemed as a setback for climate protection, analysts and activists believe that the transition to cleaner sources of energy will continue regardless, considering the fact that customers and investors want companies to deal with climate change. The economic benefits from new factories and power plants that have received government support can be seen in both states led by Democrats and Republicans.
Since Trump has plans to increase tariffs on foreign goods entering the US, the retail stocks that have their products produced outside the country posted declines after the election. However, other retail sector stocks especially department stores and others that derive revenue from issuing branded credit cards joined in on the post-election rally, as reported by Barron’s.
With that being said, let’s move to the 12 best stocks under $25 to invest in right now.
Our Methodology:
To compile a list of the 12 best stocks under $25 to invest in right now, we used the Yahoo stock screener to acquire a list of stocks with the highest market caps and share prices below $25. We then examined analysts’ average upside potential of the shortlisted stocks. Our list is in ascending order of average upside potentials, as of November 18.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
12 Best Stocks Under $25 To Invest In Right Now
12. Energy Transfer LP (NYSE:ET)
Average Upside Potential: 15.67%
Share Price: $17.29
Energy Transfer LP (NYSE:ET) is one of the largest and most diversified midstream energy companies in North America. The firm is a publicly traded limited partnership with core operations encompassing transportation, storage, and terminalling for natural gas, crude oil, NGLs, refined products, and liquid natural gas. 80 countries and territories receive the firm’s exports. Energy Transfer was formed in 1996.
Energy Transfer has one of America’s largest energy portfolios, with nearly 130,000 miles of pipelines and associated energy infrastructure in 44 states transporting the oil and gas products that make lives possible. The firm has been supplying America energy for more than two decades, representing a journey from a small intrastate natural gas pipeline operator to one of the largest investment-grade master limited partnerships in the US. The firm has a leading natural gas pipeline footprint well positioned to cater to the growing electricity demand as it pursues opportunities to serve growing power loads from new demand centers across its pipeline network. Additionally, the well-balanced asset mix tends to offer strong earnings support. In this regard, the firm’s segments include Crude Oil, NGL & Refined Products, Midstream (Gathering & Processing), Natural Gas Interstate Transport & Storage, and Natural Gas Intrastate Transport & Storage.
For Q3 2024, Energy Transfer LP (NYSE:ET) reported a net income of $1.18 billion, up 103% compared to Q3 2024. Volumes on the firm’s assets continued to increase in the quarter with the addition of new organic growth projects and acquisitions. Crude oil transportation volumes were up 25%, NGL fractionation volumes were up 12%, NGL transportation volumes were up 4%, and Midstream gathered volumes and produced volumes were up 6% and 26%, respectively.
With a unique nationwide footprint, a portfolio of assets with exceptional product and geographic diversity, and export capabilities, Energy Transfer LP (NYSE:ET) ranks as one of the best stocks currently trading below $25.
11. Sony Group Corporation (NYSE:SONY)
Average Upside Potential: 18.98%
Share Price: $18.46
Sony Group Corporation (NYSE:SONY) is a Japanese multinational conglomerate known for various products across different segments. The Sony Group comprises segments including Game & Network Services, Music, Pictures, Entertainment Technology & Services (Mobile Communications/Imaging Products & Solutions/Home Entertainment & Sound), Imaging & Sensing Solutions, Financial Services, and All Other businesses.
For the fiscal second quarter ended September 30, Sony Group Corporation (NYSE:SONY) recorded net income attributable to its stockholders of 338.50 billion yen as compared to 200.11 billion yen in the prior-year quarter, a solid increase of 69%. Sales grew by 3% year-over-year, driven by significant increases in I&SS (Imaging & Sensing Solutions) and G&NS (Game & Network Services) segments sales as well as increases in the Music and ET&S (Entertainment, Technology & Services) segments sales, while Financial Services and Pictures segments sales declined.
With a share price of $18.46 and a group of resilient and established businesses, Sony Group Corporation (NYSE:SONY) ranks 11th among the 12 best stocks under $25 to invest in right now.
10. Coupang, Inc. (NYSE:CPNG)
Average Upside Potential: 22.55%
Share Price: $24.48
Coupang, Inc. (NYSE:CPNG) offers retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands that include Coupang, Coupang Eats, Coupang Play, and Farfetch. The firm has created a next-generation experience for retail and remains powered by a dynamic end-to-end retail and logistics network.
Coupang is one of the fastest-growing retail companies that crafted an unmatched reputation for being a leading and reliable force in South Korean commerce. The firm has successfully designed and built more than 100 unique fulfillment centers, covering over 47 million square feet and housing products in millions. This implies that 70% of the Korean population lives within 7 miles of a Coupang logistics center. The firm complements this physical infrastructure with cutting-edge technology to forward deploy products into its fulfillment and delivery network to cater to spikes in demand.
For the third quarter of 2024, Coupang, Inc. (NYSE:CPNG) recorded net revenues of $7.9 billion, up 27% year-over-year. Simultaneously, gross profit increased 45% year-over-year to $2.3 billion. Product Commerce segment net revenues rose 16% year-over-year while the Developing Offerings segment (including International, Coupang Eats, Play, Fintech, and Farfetch) net revenues rose 347% year-over-year.
Thus, Coupang, Inc. (NYSE:CPNG) is an e-commerce giant that is disrupting the multi-billion-dollar commerce industry by offering the wow experience to its customers. The stock is trading below $25, as of November 18.
9. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Average Upside Potential: 24.27%
Share Price: $14.11
The Brazilian company Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) operates in an integrated and specialized manner in the oil, natural gas, and energy industry. It serves as one of the largest oil and gas producers in the world, primarily dedicated to exploration and production, refining, energy generation, and marketing.
Petrobras boasts expertise in exploration and production through decades of development in the Brazilian basins, especially in deep and ultra-deep waters. This positions the company as a world leader in the segment. While Petrobras began its journey with an aim to transform Brazil’s energy sector in 1953, it has innovated, grown, and diversified its operations over the years. The firm transforms its energy into high-quality products which can be used in several ways to cater to the varying demands of Brazilian society thereby making products made to move Brazil.
Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) reported a net profit of R$ 32.6 billion in the third quarter of 2024 while achieving one of the top six quarterly operational cash flows in its history. The firm also accomplished major operational milestones boosting future oil and gas production. These included the Marechal Duque de Caxias Floating Production, Storage, and Offloading (FPSO) unit beginning to produce oil and gas at the Mero field in the Libra block, the to-be-deployed first high-capacity FPSO in the Búzios field in the pre-salt Santos Basin, and the Maria Quitéria FPSO producing its first oil on October 15.
Hence, Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR) is a leading Brazilian energy company with extensive expertise as well as experience in its domain, currently trading under $25. The company is committed to becoming the best diversified and integrated energy company in value creation.
8. KE Holdings Inc. (NYSE:BEKE)
Average Upside Potential: 24.33%
Share Price: $19.52
KE Holdings Inc. (NYSE:BEKE) operates Beike, an integrated online and offline platform for housing transactions and services in China which was launched in 2018. It also owns and operates Lianjia, China’s leading real estate brokerage brand which is an integral part of the Beike platform. The company operates through segments including Existing Home Transaction Services, New Home Transaction Services, Home Renovation and Furnishing, and Emerging and Other Services.
KE Holdings Inc. (NYSE:BEKE) is a pioneer in building the infrastructure and standards to reinvent how Chinese service providers and customers complete housing transactions including existing and new home sales, home rentals, home renovation and furnishing, and other services. The firm builds upon an extensive industry experience regarding business conditions and markets. Since its founding in 2001, it has over 21 years of solid operating experience through Lianjia. Furthermore, the firm has a robust balance sheet with healthy cash inflows.
For the fiscal second quarter of 2024, KE Holdings Inc. (NYSE:BEKE) recorded net revenues of RMB23.4 billion, an increase of 19.9% year-over-year. Net revenues from existing home transaction services increased by 14.3% over the year. Non-housing transaction services also accelerated with net revenues from home renovation and furnishing business rising 53.9% and home rental services climbing 167.1%, year-over-year. Net income rose 46.2% year-over-year thereby reflecting resilient profitability.
7. Itaú Unibanco Holding S.A. (NYSE:ITUB)
Average Upside Potential: 25.84%
Share Price: $5.96
Itaú Unibanco Holding S.A. (NYSE:ITUB) is a full-service, universal bank with a presence in 18 countries. It is present in 18 countries with its main businesses including Corporate & Investment Banking, Asset Management, Private Banking, and Retail Business. The firm adopts the “Phygital” model (a combination of physical and digital) to provide its clients with the freedom to choose how they want to relate to the bank.
The company is one of the largest Brazilian private banks in market value. Based on market value on October 31, the company serves as the largest bank in Latin America with 100 years of history. The firm’s ability to adapt, innovate, and change has enabled it to achieve the status of a universal bank. Apart from offering the most complete portfolio of financial products and services, the firm serves clients how, when, and where they want to be served being a digital bank with the advantage of in-person service.
The firm’s recurring managerial result reached R$10.7 billion in Q3 2024, up 19.4% year-over-year. At the same time, the credit portfolio grew 9.9% year-over-year. Revenues from investment banking operations and brokerage services declined as a result of lower activity in the fixed-income market but were offset by improved revenues from credit card activities, asset management, and higher results from insurance operations.
Thus, Itaú Unibanco Holding S.A. (NYSE:ITUB) is a leading universal bank with a rich history, a broad product portfolio, and a dominant position in Latin America.
6. Banco Santander, S.A. (NYSE:SAN)
Average Upside Potential: 27.70%
Share Price: $4.82
Banco Santander, S.A. (NYSE:SAN) is a leading Spanish multinational financial services company. Santander was founded in 1857 and it became Spain’s seventh-largest financial institution by its 100th anniversary in 1957. The company is structured under five global businesses including Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking, Wealth Management & Insurance, and Payments.
The firm’s business model is based upon unique competitive advantages such as diversification, a global scale, and customer focus. While Banco Santander, S.A. (NYSE:SAN) focuses on achieving well-balanced diversification between businesses and markets, its in-market and global scale helps enhance local banks’ profitability. As of June 2024, SAN boasts 168 million customers and €1,786 total assets. In recent years, the company has expanded its customer base with balanced growth by business and region.
The first nine months of 2024 proved to be promising for Banco Santander, S.A. (NYSE:SAN) with a profit of €9,309 million, up 14% year-over-year, driven by solid revenue growth across all global businesses and regions as well as good cost control. The firm reaped the benefits of the higher customer activity, margin management, and its global scale in the form of net interest income rising 9% and net fee income rising 6%, resulting in 8% total income growth.
The unique combination of in-market and global scale enables the firm to be one of the most profitable banks in its markets. With an evident strength across global businesses, Banco Santander, S.A. (NYSE:SAN) is an attractive stock under $25 to invest in.
5. América Móvil, S.A.B. de C.V. (NYSE:AMX)
Average Upside Potential: 31.69%
Share Price: $15.1
América Móvil, S.A.B. de C.V. (NYSE:AMX) is an integrated telecommunications services company in Latin America. It offers and derives revenues from various services and products including wireless voice, wireless data and value-added services, fixed voice, fixed data, broadband and information technology services, Pay TV, over-the-top services, and sales of equipment and accessories.
The company’s world-class communications platform allows it to provide a portfolio of value-added services and enhanced communications solutions in 22 countries in Latin America, and Central and Eastern Europe. Its networks are one of its key competitive advantages as it owns and operates one of the largest integrated platforms based on its covered population across countries in Latin America. Furthermore, geographic diversification has brought greater stability in the firm’s cash flow as well as profitability.
For Q3 2024, the firm’s revenue was 223 billion pesos with service revenue rising 11.3% year-over-year in Mexican peso terms. América Móvil, S.A.B. de C.V. (NYSE:AMX) added 1.8 million subscribers including 1.4 million postpaids in the quarter. Its prepaid platform registered 468 thousand net additions, driven by Colombia, Eastern Europe, and Argentina. Mobile service revenue recorded its best performance in over a year, along with the postpaid segment.
América Móvil, S.A.B. de C.V. (NYSE:AMX) offers the best service and customer experience with state-of-the-art communications solutions, information technology, and digital content. It is one of the best stocks under $25 to invest in.
4. Teva Pharmaceutical Industries Limited (NYSE:TEVA)
Average Upside Potential: 39.99%
Share Price: $16.43
Teva Pharmaceutical Industries Limited (NYSE:TEVA) enables access to quality medicines and treatment options. Products offered by the company range from generics, innovative and biosimilar medicines, to over-the-counter treatments. Teva was established in 1901 and has its global headquarters based in Israel.
Teva has the privilege of being the global leader in generic medicine with the world’s largest medicine cabinet. The firm’s high-quality medicines serve almost 200 million people across six continents every day. The company has a portfolio of over 3,600 medicines and produces nearly 76 billion tablets and capsules a year. Additionally, Teva has shown consistent quarterly revenue growth since Q1 2023.
Teva Pharmaceutical Industries Limited (NYSE:TEVA) closed a strong third quarter. The company posted revenues of $4.3 billion, up 13% year-over-year. Its innovative portfolio and generics business drove the strong quarterly performance. Other updates included Teva’s biosimilar candidate to Prolia (denosumab) being accepted for review by the US FDA and the European Medicines Agency, the UZEDY launch gaining momentum, and AUSTEDO demonstrating continued growth. UZEDY was approved by the FDA on April 28, 2023, for the treatment of schizophrenia in adults. Meanwhile, AUSTEDO is targeted at tardive dyskinesia and chorea associated with Huntington’s disease.
In conclusion, Teva Pharmaceutical Industries Limited (NYSE:TEVA) is one of the leading pharmaceutical companies in the world with a global reach and scale as well as a fully integrated R&D function. The firm remains on track to deliver meaningful access to medicines as well as continued growth for its shareholders.
3. Cenovus Energy Inc. (NYSE:CVE)
Average Upside Potential: 41.61%
Share Price: $15.62
Cenovus Energy Inc. (NYSE:CVE) is an integrated energy company headquartered in Calgary, Canada. The firm operates through various segments including Oil Sands, Conventional, and Offshore as its Upstream segments while Canadian Refining and US Refining serve as its Downstream segments.
For the third quarter of 2024, Cenovus Energy Inc. (NYSE:CVE) recorded total revenues of approximately $14.2 billion which declined year-over-year, primarily due to lower commodity prices affecting both upstream and downstream results. Total upstream production was 771,300 barrels of oil equivalent per day, a decrease over the year due to turnarounds at Christina Lake, Rainbow Lake, and other Conventional facilities. In the downstream, total throughput rose by about 20,000 barrels per day from the second quarter to almost 643,000 barrels per day, and a major turnaround was completed at the Lima Refinery.
Additionally, Cenovus is progressing well on many projects that are expected to improve shareholder returns for the long term. While the firm started production from two new well pads at Sunrise which will ramp up in the 4th quarter, it progressed the tie-back of Narrows Lake, constructing a 17-km pipeline connecting the reservoir to the Christina Lake processing facility. Furthermore, the optimization project at Foster Creek is on track for startup by the middle of 2026. Thus, Cenovus Energy Inc. (NYSE:CVE) is pursuing bright growth prospects and currently trades at a price below $25.
2. Barrick Gold Corporation (NYSE:GOLD)
Average Upside Potential: 44.46%
Share Price: $16.65
Barrick Gold Corporation (NYSE:GOLD) serves as a sector-leading gold and copper producer. The firm’s operations and projects span eighteen countries and four continents. Barrick is a world-class global mining company that has one of the largest portfolios of Tier One and world-class gold and copper assets that remain unrivaled in the industry.
The firm is increasing its copper exposure and is in a good spot to capitalize on global decarbonization trends resulting in the long-term fundamental strength of copper. Also, Barrick has a strong exploration success track record as well as a clear runway with its mines having 10-year business plans, some even rolling out to 15 and 20 years. Among peers, Barrick has maintained the highest gold reserve grade by delivering unparalleled growth of reserve base. Additionally, since year-end 2019, the firm has organically replaced over 140% of mined gold reserves thereby adding almost 29Moz of attributable proven and probable reserves.
Currently, the firm is set to deliver a strong end to the year. In Q3, gold production was in line with the previous quarter while copper production was up 12% quarter-over-quarter. Net earnings per share grew by 33% year-over-year. Through the ramp-up of the Pueblo Viejo plant expansion, enhanced throughput at Nevada Gold Mines, and higher grades at Kibali, the firm looks forward to a bright Q4.
Thus, Barrick Gold Corporation (NYSE:GOLD) has a unique portfolio of gold and copper assets alongside a robust growth pipeline and an unmatched ability to organically replace reserve depletion. The firm has been capable of returning $4.9 billion to shareholders since 2019 in the form of dividends, capital returns, and share buybacks.
1. Hafnia Limited (NYSE:HAFN)
Average Upside Potential: 76.30%
Share Price: $5.27
Hafnia Limited (NYSE:HAFN) serves as one of the world’s largest operators of product and chemical tankers and is committed to leading the maritime industry into a better future. The firm commercially operates over 200 vessels as a fully integrated shipping platform that includes technical management, commercial and chartering services, pool management across eight segments, and a large-scale bunker procurement desk.
Apart from a good reputation, the firm seeks the benefits of established industry partner relationships and a solid foothold in the investor community. The firm’s fleet of best-in-class tanker vessels serves the tanker industry and is active across all segments. Hafnia delivered strong results in Q2 and achieved a net profit of $259.2 million. The commercially managed pool and bunker procurement business generated an income of $10.7 million. Adjusted EBITDA was $317.1 million in Q2 2024 as compared to $261.6 million in the prior-year period. The quarter marked the company’s best performance since the beginning of 2023 alongside a strong first half of the year.
Therefore, Hafnia is a forward-thinking tanker company that proactively reviews the market for opportunities that have the potential to deliver stronger shareholder value. A robust business model, an unparalleled scale, and strong industry fundamentals deem Hafnia Limited (NYSE:HAFN) one of the best stocks under $25 to invest in right now.
While we acknowledge the potential of HAFN as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than HAFN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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