Wall Street Favorites: 3 Under-$20 Stocks With Strong Buy Ratings for May 2024

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At a time when distrust in the media is rising, the concept of analyst-backed cheap stocks to buy under $20 might seem jarring. After all, the experts get their fair share of criticism in the blogosphere.

Nevertheless, targeting bargain ideas that have the support of Wall Street’s top experts could be a shrewd maneuver. No, you shouldn’t just rely on any one person’s opinion on anything. However, these folks don’t just randomly appear in positions of power and influence. They have reputations to keep and so they avoid truly kooky ideas.

So, if experts are willing to stick their necks out for an opportunity, that might be saying something. With that, below are intriguing cheap stocks to buy.

Nomad Foods (NOMD)

NOMD stock: Nomad Foods braded products featured in a store

Source: defotoberg /

Based in the U.K., Nomad Foods (NYSE:NOMD) falls under the broad consumer defensive space, specifically packaged foods. Per its public profile, Nomad along with its subsidiaries manufactures, markets and distributes a range of frozen food products for its home and international markets. It may be best known for its frozen fish, which include fish fingers and coated fish. As well, it specializes in ready-to-cook vegetable products.

Financially, the company is a consistent performer. Since the first quarter of this year and looking back to Q2 2023, the company’s average positive earnings surprise came in at 6.3%. Nominally, on a trailing-12-month (TTM) basis, its net income stands at $186 million. Its operating margin is 12.07% while its profit margin is 6.09%.

For fiscal 2024, analysts believe that earnings per share will reach $1.92 on sales of $3.4 billion. That’s a modest improvement over last year’s results of $1.74 EPS on sales of $3.29 billion. Fundamentally, consumers deciding to cook at home to save money amid global economic pressures could help lift NOMD. Thus, it’s one of the worthwhile cheap stocks to buy.

Turtle Beach (HEAR)

Image of a gamer with a headset facing a screen

Source: Donna Lupgens /

Headquartered in White Plains, New York, Turtle Beach (NASDAQ:HEAR) falls under the consumer electronics space. Per its corporate profile, Turtle Beach operates as an audio technology firm. It develops, commercializes and markets gaming headset solutions for various platforms. This includes video game and entertainment consoles, handheld consoles, personal computers and other platforms.

To be fair, the audio specialist’s financial performance can be all over the map. However, when it hits, it knocks the ball out of the park. Since Q1 2024, Turtle Beach’s average quarterly surprise came out to 30.58%. That said, it’s presently not a profitable enterprise.

However, that could change soon. For fiscal 2024, analysts believe that EPS could clock in at 62 cents on sales of 376.59 million. That’s a massive improvement over last year’s loss per share of 12 cents on revenue of $258.12 million. Further, in fiscal 2025, the bottom line could improve again to $1.19 per share with top line of $428 million. It’s a compelling idea for cheap stocks to buy thanks to the gaming sector’s popularity.

Universal Technical Institute (UTI)

man in headphones writing notes in notebook watching webinar video course

Source: fizkes /

One of the high-IQ plays among cheap stocks to buy in my opinion, Universal Technical Institute (NYSE:UTI) deserves close investigation. Operating in the education and training services space, UTI provides transportation, skilled trades and healthcare education programs in the U.S. It operates in two segments: UTI and Concorde.

Fundamentally, white collar jobs are increasingly more difficult to acquire. And you know what? With the academic industrial complex churning out new waves of graduates, young people will be competing for those scarcer office jobs. Since “nobody” (I’m using hyperbole here) wants blue-collar work, the demand (i.e. paychecks) for the manual sector will only rise. Subsequently, UTI carries a unanimous strong buy view among analysts.

Even better, experts believe that for fiscal 2024, EPS will rise to 70 cents on sales of $722.46 million. That’s a big improvement over last year’s results of earnings of 13 cents per share on revenue of $607.41 million. In fiscal 2025, the print could rise again to EPS of 91 cents with a top line of $790.75 million.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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