4 Undervalued Stocks Under $20: Your Ticket to Explosive Growth?

$SOFI, $GRAB, $RKLB, $LOCAL: High-Growth Stocks Poised to Skyrocket

Think a $20 stock can’t make you rich? Think again! Beneath the radar of Wall Street’s big-ticket darlings lie four unstoppable players—SoFi $SOFI ( ▲ 0.53% ), Grab $GRAB ( ▲ 0.63% ), Rocket Lab $RKLB ( ▼ 1.19% ), and The Local $LOCAL—all trading under $20 and packed with jaw-dropping potential. From SoFi’s fintech domination and a $5 billion deal to Rocket Lab’s space conquests and Grab’s Southeast Asian empire, these stocks are growing fast and defying the odds. Sure, they’ve got bumps in the road—volatility, doubters, and all—but their revenue surges, bold moves, and untapped markets scream breakout vibes. Ready to snag the next big winners before they soar? Let’s dive into the undervalued magic!

Today’s episode - Opportunistic 🚀

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📈Undervalued and Unstoppable: 4 Stocks Under $20 That Could Skyrocket

Stock prices can be deceptive. A $20 stock isn’t necessarily cheaper than a $200 stock—valuation matters more than just the number attached to it. What really counts is the business behind the stock, its financial health, growth potential, and ability to navigate market cycles.

For investors searching for high-upside opportunities without shelling out hundreds per share, there are a few hidden gems trading under $20 that might be worth a closer look. These companies are growing fast, gaining market share, and could provide serious returns over time.

Here’s a breakdown of four such stocks, each with strong business fundamentals and promising futures.

SoFi: A Great Company

SoFi Technologies ($SOFI) is no stranger to volatility. Trading at around $12 per share, its price action may not inspire confidence at first glance. It’s down 36% in the last year, and historically, it has seen multiple drawdowns of 40–50%. But if price alone dictated a company’s value, Amazon and Tesla would have never become the giants they are today.

SoFi’s stock may be unpredictable, but the business itself is thriving. The company has been profitable for five consecutive quarters, and total revenue has been growing at a compound annual growth rate (CAGR) of 62.4% since 2019. It has expanded beyond just student loans, offering a robust suite of financial products, including high-yield savings, investing, and a rapidly growing tech platform.

One of SoFi’s biggest recent moves was signing a $5 billion loan business platform agreement with Blue Owl Capital. This deal strengthens its high-margin, fee-based business while reducing overall risk exposure.

Is it the perfect stock? No. Is it a well-positioned fintech leader with massive growth potential? Absolutely.

Grab: More Than Just a Ride-Hailing Stock

For investors looking at companies still in the early innings of growth, Grab ($GRAB) is an intriguing pick. It’s trading under $5 per share, but with a $17 billion market cap, this isn’t a small company—it’s a major force in Southeast Asia’s digital economy.

Grab started as a ride-hailing service but has evolved into an ecosystem spanning food delivery, digital payments, and financial services. Its fintech segment is its fastest-growing division, expanding at a CAGR of 58.7%. Meanwhile, mobility and delivery services are maintaining solid double-digit growth.

Yes, the stock has seen turbulence. It’s down 10% year-to-date but still up nearly 32% over the past year. Analysts have an average price target 36% above current levels, signaling confidence in Grab’s long-term potential.

Its business model is proving increasingly profitable, with free cash flow expected to grow by 39% and 32.6% in 2026 and 2027, respectively. With a strong grip on Southeast Asia and a growing fintech segment, Grab could turn into one of the region’s biggest tech winners.

Rocket Lab: A One-Stop Space Powerhouse

When people think of space stocks, they often think of flashy names like SpaceX. But Rocket Lab ($RKLB) is quietly becoming a major force in the space industry, offering both satellite launch services and space systems solutions.

At around $17 per share, Rocket Lab might look expensive compared to other stocks on this list, but its $8.3 billion market cap tells a different story—it’s still small compared to industry giants. The company is positioning itself as a full-service space partner, and its revenue is expected to more than double by 2027.

Perhaps the most important catalyst is Rocket Lab’s Neutron rocket, set for its first launch in the second half of this year. If successful, this could significantly scale the company’s operations. The ability to offer reusable launch services—similar to SpaceX—would open up massive new revenue streams.

Right now, the biggest chunk of Rocket Lab’s revenue doesn’t come from launches—it comes from space systems. The company has been acquiring other businesses to strengthen its position in the market, and margins are improving as launch frequency increases.

Yes, it’s a speculative play. But for investors betting on the commercialization of space, Rocket Lab offers a compelling opportunity.

The Local: A Beaten-Down Stock With Big Potential

The Local ($LOCAL) is currently trading around $8 per share, and let’s be honest—it’s been a rough ride. The stock is down 53% year-over-year and 29% year-to-date. After a strong run, it took a nosedive following a disappointing earnings report. But for long-term investors, this could be an opportunity.

Despite the stock’s struggles, the business itself is thriving. Revenue is still expected to grow at 28.3% in 2025, followed by over 23% growth in the next two fiscal years. The company remains profitable, and while recent margin compression has spooked investors, management is making strategic investments to position the business for future dominance.

The main issue? Take rates have taken a hit. But this is largely due to the company prioritizing transaction volume over immediate profitability—a strategy that could pay off over time. Currency fluctuations have also impacted performance, but if the U.S. dollar weakens, that headwind could turn into a tailwind.

For investors willing to stomach volatility, The Local represents a high-risk, high-reward opportunity.

Why Stock Price Alone Doesn’t Tell the Full Story

The common thread among these four stocks? They all have strong underlying businesses, yet their stock prices remain low due to temporary market sentiment, short-term headwinds, or general mispricing.

The market often confuses price with value. Just because a stock trades under $20 doesn’t mean it’s a bargain—or that it’s destined to stay there. Growth stocks, especially in tech and innovation-driven sectors, frequently see volatility as they scale.

Here’s what really matters:

  1. Revenue Growth – All four companies are expanding their top-line revenue at impressive rates.

  2. Profitability Potential – SoFi is already profitable, and Grab and Rocket Lab are on the verge of reaching positive free cash flow.

  3. Market Position – Each of these companies operates in a rapidly growing industry with a strong competitive moat.

  4. Future Catalysts – Whether it’s SoFi’s fintech expansion, Grab’s digital ecosystem, Rocket Lab’s Neutron launch, or The Local’s long-term strategy, each has key growth drivers ahead.

The market isn’t always rational in the short term. But over time, businesses that execute well tend to see their stock prices follow.

Final Thoughts

Investing in stocks under $20 isn’t about finding “cheap” stocks—it’s about finding undervalued opportunities. The real question isn’t how much a stock costs today, but where it could be in the next five or ten years.

SoFi, Grab, Rocket Lab, and The Local each have the potential to break out of their current price ranges and deliver substantial long-term returns. The road won’t be smooth—volatility is part of the game—but for those who can focus on the bigger picture, these names could be worth adding to a watchlist.

After all, some of today’s best-performing stocks were once trading under $20—before they skyrocketed.

Will one of these be next? Time will tell.

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