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The pullbacks in the broader indices precipitated this list of undervalued stocks under $20. When done successfully, the biggest gains may come from investors adopting a contrarian stance. This is because investing early or against the grain may assume more risk, but this too comes with more rewards.
These undervalued stocks under $20 represent a good mix of risk and predicted upside, so investors may consider this list of companies closely.
Uranium Energy Corp (UEC)
Uranium Energy Corp (NYSEAMERICAN:UEC) exhibits potential due to increasing uranium prices and demand. This is amid nuclear energy undergoing a resurgence in interest as the world battles with climate change.
Further, the company is proceeding with its exploration projects across the U.S. and internationally. They have highlighted recent successes in 2023, such as notable uranium finds and the restart of 100% unhedged uranium production in Wyoming.
Uranium stocks such as UEC tend to trade in line with the spot prices of uranium, which currently price for around $100 per pound. Although the spot prices have since fallen from $106, the growth story isn’t over yet, which could lead to big future gains for UEC investors.
Countries worldwide are expanding, starting, or restarting their nuclear energy projects, and technologies like miniaturized nuclear reactors mean that the prohibitively high upfront costs of making nuclear power stations are reduced significantly.
BlackSky Technology (BKSY)
BlackSky Technology (NYSE:BKSY) specializes in space-based intelligence services and has courted the attraction of investors and Wall Street analysts.
The company leverages its low earth orbit satellite constellation and Spectra AI software platform to deliver high-frequency imagery. Reporting strong top-line growth, it also projects reaching breakeven profitability shortly.
In its most recent quarter, the company posted results showing a 26% increase in revenue year over year (YOY). Wall Street rates the company as a “strong buy”. Further, this recommendation comes with a 140.94% projected increase in stock price, to be realized within the next twelve months.
If analyst estimates are accurate regarding BKSY, we could expect it to reach profitability sometime between FY2026 to FY2027. Also, its EPS may come close to breaking even in FY2025 as it is forecasted to be 4 cents.
Blade Air Mobility (BLDE)
Blade Air Mobility (NASDAQ:BLDE) is making strides in urban air mobility as one of the lowest appreciated flying car stocks to buy. BLDE is not a manufacturer of flying vehicles. However, they offer an air transportation service using a mix of helicopters and amphibious aircraft.
Its recent financials have been impressive. The company reported a 56.3% increase in total revenue, reaching $71.4 million, compared to $45.7 million YOY.
Furthermore, it’s planning to deploy BETA Technologies’ ALIA Electric Vertical Aircraft for quiet, zero-emission services starting late this year. This would mark its inclusion of incorporating electric vertical take-off and landing (eVTOL) aircraft into its fleet.
Wall Street’s opinion of BLDE is optimistic. It has a “strong buy” rating and a 173.68% predicted increase in its stock price.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.