In the market as in life, you get what you pay for. And that means stocks under $20 present a tricky narrative. Understandably, the topic gets plenty of traction. The biggest blue-chip enterprises tend to command three-digit price tags, if not greater. It just leaves regular folks on the outside looking in, especially if they don’t have access to fractional equity capabilities.

To remedy this situation, some investors turn to cheap securities. However, the problem with this approach is that sometimes (many times), cheap valuations become even cheaper. When an organization prints gobs of red ink, there’s usually a reason for it — and typically not a good one. Thus, it’s more prudent to stick with quality names.

However, modestly priced equities have their place. Besides, with thousands upon thousands of opportunities available, it’s practically impossible to cover all of them adequately. Some ideas simply fall through the cracks. These stocks under $20 deserve a closer inspection.

Innodata (INOD)

A data engineering specialist, Innodata (NASDAQ:INOD) also focuses on digital transformation and artificial intelligence. The company helps organizations extract utility out of their data for superior decision-making and efficiency. Further, its leveraging of AI should make INOD stock an intriguing idea for speculators.

One of the smaller enterprises, Innodata has enjoyed a strong performance this year. Nevertheless, it’s prone to wild trading activity. Although INOD stock has witnessed volatility in recent sessions, its sales multiple is elevated at 4.8X. In contrast, in the prior year, the average price-to-sales ratio sat at 3.02X.

Still, patient speculators should keep INOD on their watchlist of stocks under $20. For fiscal 2024, analysts believe that sales may reach $121.57 million. During the trailing 12 months (TTM), the company generated revenue of $94.44 million. In the following year, sales could hit just over $157 million.

Assuming a shares outstanding count of 28.75 million, INOD is trading around 2.8X projected 2025 sales. That makes it an even more tempting offer.

ReposiTrak (TRAK)

Focused on asset tracking and management solutions, ReposiTrak (NASDAQ:TRAK) offers robust acumen in the Internet of Things (or IoT) and cloud-based solutions. With machines increasingly communicating with each other, ReposiTrak enjoys strong relevance. Also, the company’s services can help foster operational efficiencies for its enterprise-level customers.

At the moment, TRAK stock carries a trailing-year sales multiple of 15.95X. That’s quite high. During the first quarter of this year, the equity averaged 15.07X. Overall, in the past year, the stat came out to an average of 10.84X.

That said, the lone expert that’s covering the company believes that fiscal 2024 sales may hit $20.34 million. If so, that would imply a 6.5% lift from last year’s print of $19.1 million. In the following year, revenue could rise again to $23.02 million. That would translate to a growth rate of 13.2% from projected 2024 sales.

Presently, ReposiTrak features a shares outstanding count of 18.22 million. Should this stat hold true, TRAK would trade at 13.4X next year’s revenue. That’s still hot but the trend is moving in the right direction. Thus, it’s one of the stocks under $20 to watch.

Paymentus (PAY)

A cloud-based bill payment technology, Paymentus (NYSE:PAY) offers financial technology (fintech) services for businesses and institutions. It’s an important player among stocks under $20 thanks to its ability to foster efficient and secure payment processing. Increasingly, transactions are conducted online and therefore demand for digital conveniences should only rise.

Despite the relevancies, PAY stock is trading at a relatively reasonable valuation. Currently, shares exchange hands at 3.77X sales. During Q1, this stat averaged a lofty 4.63X. In the previous quarter, the metric was 3.81X. Overall, in the past year, the multiple landed on average at 3.64X.

Moving forward, analysts anticipate significant business expansion. In fiscal 2024, sales could rise to $749 million, up 21.9% from last year’s print of $614.49 million. In the following year, revenue might hit $889.27 million. Further, the high-side estimate calls for $907.22 million.

Assuming a shares outstanding count of 21.91 million, PAY stock would be trading at 0.47X projected 2025 high-side sales. That might be too good of a deal for some speculators to pass up.

ACM Research (ACMR)

A semiconductor specialist that specializes in process equipment, ACM Research (NASDAQ:ACMR) offers innovative solutions that help boost the efficiency and performance of semiconductor manufacturing. While it’s not the most popular idea in terms of brand awareness, ACM offers critical “background” services.

Enticingly, ACMR stock trades around 1.84X revenue. In Q1, the sales multiple averaged 3.39X. Throughout the past year, the premium stood at 2.71X. Therefore, shares of the tech specialist can be had for a relative discount. It’s also worth pointing out that ACMR trades at 1.46X book value, below the prior year average of 1.85X.

Looking out to year’s end, covering experts believe that sales may soar to $710.11 million. If so, that would represent a lift of 27.3% from last year’s haul of $557.72 million. And in fiscal 2025, revenue could reach $872.19 million, with a high-side estimate of $984.8 million.

Assuming a shares outstanding count of 56.99 million, ACMR is trading at 1.13X 2025 high-end sales. It makes a tempting case for stocks under $20.

McEwen Mining (MUX)

Based in Canada, McEwen Mining (NYSE:MUX) engages in the exploration, development and production of gold, silver and copper. Fundamentally, McEwen is attractive due to potential monetary policy pivots. If the Federal Reserve lowers the benchmark interest rate, that could be net positive for precious metals and core commodities. That should help MUX stock.

Right now, the mining firm features a price-to-sales ratio of 2.23. That’s lower than the gold sector’s average multiple of 2.61X. Further, in Q1 of this year, the metric stood at 2.82X. In the prior year, the stat averaged 2.68X. This implies that McEwen could grow into its prior valuation given the right catalyst. That could come in the form of interest rate cuts.

Notably, analysts believe that by the end of the current fiscal year, revenue could rise to $303.92 million. If so, that would imply a growth rate of 33.8% from last year’s haul of $227.22 million. In the following year, sales could move up to $319.43 million, with a high-side view of $524.02 million.

Thanks to the projected expansion of the business, MUX ranks among the stocks under $20.

Vaalco Energy (EGY)

A hydrocarbon energy specialist, Vaalco Energy (NYSE:EGY) engages in the exploration, development and production of crude oil and natural gas. Also known as the upstream component of the hydrocarbon value chain, Vaalco may enjoy increased demand due mainly to geopolitical flashpoints. Such conflicts may spill over and disrupt global oil inventories, which could cynically boost demand for EGY stock.

Right now, shares trade hands at 1.64X sales. To be sure, this stat comes at a premium relative to the prior year’s average multiple of 1.07X. However, the upstream oil and gas sector features an average multiple of 1.93X. Therefore, EGY stock potentially has more room to grow.

Where the narrative gets a bit tricky is projections for this fiscal year. The consensus view calls for sales of $407.05 million. However, that’s down almost 11% from last year’s print of $455.07 million. Nevertheless, the high-side view calls for a top line of $494.8 million. Further, the optimists are modeling for fiscal 2025 revenue to hit $567.05 million.

If anything, Vaalco is one of the best stocks under $20 if you want to hedge against an energy crisis.

Coursera (COUR)

One of the riskiest ideas to consider among stocks under $20, Coursera (NYSE:COUR) will be criticized for being a falling knife. Further, the rise of AI supposedly threatens the business model. However, I have a different view. The company specializes in providing an online learning platform. It’s not just about acquiring new skills: Coursera offers professional certifications and college degree credits.

In other words, the company offers advantages that AI can’t touch. That said, I’m not naïve to the heavy losses that COUR stock incurred since makings its public market debut. Nevertheless, it appears that since June, Coursera has been charting a series of higher lows. I don’t want to jump ahead of myself but there could be a growth opportunity here.

Analysts are looking at revenue of just under $700 million by the end of this fiscal year. If so, that would be up 10.1% from last year’s print of $635.76 million. Further, fiscal 2025 revenue could soar to $786.82 million, up 12.4% from projected 2024 sales.

With the right catalysts, COUR could fly. It’s worth keeping on the radar.

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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.