With inflation these days, you might think you’re only going to receive junk when it comes to stocks under $20. And certainly, there’s a lot of smelly stuff the lower you go in the pricing totem pole. However, a select few ideas invariably stand out for their high growth potential.

Of course, let’s keep it real: when you deal with stocks under $20, you’re going to have to accept a higher risk profile. For example, what makes blue chips so comforting is their high degree of predictability. However, that same predictability necessarily lessens their ultimate reward potential.

On the flipside, you have stocks under $20. They’re unpredictable but that can also be a good thing if the market gods favor you. On that note, here are some possible discounts to consider.

Talos Energy (TALO)

An oil and gas company, Talos Energy (NYSE:TALO) engages in the exploration, development, and production of oil and natural properties in the Gulf Coast and Gulf of Mexico. To be sure, TALO seems an unusually risky idea for stocks under $20. Should the Democrats hold power in the upcoming election, the hydrocarbon industry could face relevancy issues.

That seems to be what the mainstream message is selling you. However, assessing the geopolitical situation, it’s clear that the western world needs fossil fuels. Unfortunately, one energy exporter decided to curb stomp the international order and so, here we are. Analysts seem to recognize the possibility of a demand increase for hydrocarbons.

For fiscal 2024, they believe that Talos could print sales of $1.95 billion. If so, that would mean a 33.8% skyrocketing from last year’s result of $1.46 billion. Also, earnings per share may land at 36 cents, above 2023’s EPS print of 23 cents.

Lastly, covering experts rate shares a unanimous strong buy with a $19.25 average price target. That makes it a tempting idea for stocks under $20.

Target Hospitality (TH)

A company that provides workforce lodging and other temporary, modular housing, Target Hospitality (NASDAQ:TH) focuses on serving the oil, gas and mining operations. In addition, it answers the call for government agencies, disaster relief initiatives and large-scale events. While relevant (especially when something comes up), Wall Street isn’t currently thrilled with TH stock.

Since the start of the year, shares slipped almost 12%. And in the past 52 weeks, they’re down practically 50%. Some of that red ink is fundamentally tied to the hydrocarbon space, which has admittedly been weak. Still, I’m generally optimistic about Target Hospitality because I don’t anticipate circumstance to be deflated indefinitely.

Indeed, during the company’s most recent earnings disclosure, management noted that fiscal 2024 revenue could land between $410 million and $425 million. That’s above the consensus of $409.67 million. Further, the leadership team expects both organic and inorganic growth opportunities in the future.

Notably, analysts peg shares a unanimous strong buy with a $14 average price target. That implies over 61% upside potential, making TH one of the top stocks under $20.

Broadwind (BWEN)

Headquartered in Cicero, Illinois, Broadwind (NASDAQ:BWEN) specializes in heavy fabrication. Per its website, the company offers full-scope manufacturing of heavy industrial components, structures, and equipment at massive scales. It also helps simplify complex sourcing and supply chain needs for industrial installations and manufacturing. As well, it provides expert welding and fabrication for cranes, conveyers, and other material handling components.

Partnering with clean energy projects – such as the development of wind turbines and solar power infrastructure – Broadwind could be considered one of the green ideas for stocks under $20. Despite its relevance, BWEN represents a high-risk, high-reward opportunity. On the not-so-pleasant side, shares tumbled 13% since the start of the year.

Unfortunately, analysts are only expecting revenue of $150.26 million in fiscal 2024, down 26.2% from last year. However, sales could recover in 2025 to nearly $206 million. If so, that would represent a 37.1% year-over-year lift.

Covering experts rate BWEN a unanimous strong buy with a $5.50 price target. That implies 134% growth potential.

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 InvestorPlace.com Publishing Guidelines.