8 Stocks Under $20 To Invest In Now

1. Albertsons Companies, Inc. (NYSE:ACI)

Share Price: $18.50

Number of Hedge Fund Holders: 59

Albertsons Companies, Inc. (NYSE:ACI) is one of the largest food and drug retailers in the United States. The company operates more than  2,269 stores across 34 states under the brand names of Albertsons, Safeway, and Vons. This strong presence makes the company a leading player in the grocery store market. Moreover, the company also runs 1,725 pharmacies, more than 400 fuel centers, and around 1,330 in-store coffee shops.

Albertsons Companies, Inc. (NYSE:ACI) also has a robust online presence managed through its website and mobile app that allows customers to shop online and opt for delivery services. The stock is trading under $20 and was held by 59 hedge funds as per Insider Monkey’s database, thereby making it one of the best stocks under $20 to invest in now.

During the most recent quarter which is the fiscal Q1 2024, management indicated that it continues to focus on customer for life strategy. Under this strategy, it focuses on increasing its loyalty members. The strategy has been working fine for the company. Albertsons Companies, Inc. (NYSE:ACI) was able to grow its loyalty members by 15% year-over-year to 41.4 million.

Moreover, the company continued to perform well in the digital segment, with sales improving 23% year-over-year. Its same-store sales were also up by 1.4% thereby indicating an overall positive performance across all indicators. As a result of which, the net income of the company reached $241 million.

The continued focus on increasing loyalty members is expected to keep the company on the growth track for the fiscal year 2024, thereby making it an attractive investment opportunity for those looking for stocks trading below $20.

While we acknowledge the potential of Albertsons Companies, Inc. (NYSE:ACI) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for a promising AI stock that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.