Two Hidden Gems Under $20: Best Stocks Poised for Explosive Growth in 2025

The stock market is entering a pivotal moment. Q4 earnings season is heating up with impressive results from major players like Netflix, Taiwan Semiconductor, and JPMorgan, signaling strong momentum heading into 2025. More importantly, every S&P 500 sector is projected to deliver EPS growth this year—the first time since 2018. Coupled with the Fed’s recent inflation cooldown and potential interest rate cuts on the horizon, the backdrop is perfect for savvy investors to hunt for undervalued opportunities.

If you’re looking for best stocks under 20 dollars with serious upside potential, two names deserve your attention: WisdomTree (WT) and SoFi Technologies (SOFI). Both are trading at bargain prices yet boast compelling growth catalysts that could drive substantial returns.

WisdomTree: The $10 Fintech Play With 30%+ Upside Potential

WisdomTree, Inc. commands the fintech landscape as the world’s largest independent ETF sponsor, managing a staggering $113.5 billion in assets under management as of January 21. This isn’t just another asset manager—WT has positioned itself at the intersection of traditional finance and modern investing.

The company’s business model is beautifully diversified. Its ETF offerings span from traditional U.S. Large Cap Dividend and Value funds to cutting-edge Cloud Computing and Artificial Intelligence thematic products. Beyond equity exposure, WisdomTree provides investors access to international markets, Bitcoin, and emerging asset classes—perfectly aligned with the current investor appetite for diversification.

What’s particularly compelling is WisdomTree’s consumer-facing innovation. The blockchain-based WisdomTree Prime app delivers an intuitive platform for users to spend, save, and invest seamlessly. As low and no-cost investing platforms democratize wealth management globally, WT’s standing as an independent powerhouse gives it a significant moat.

The numbers speak volumes. Revenue jumped 16% in 2023, with projections calling for 23% growth in FY24 and 9% in FY25, reaching $467 million. But the real kicker? Adjusted earnings are expected to explode 76% in FY24, followed by 14% growth in 2025—building on 40%+ expansion in FY23. The company’s operating margin expanded by 4.7 percentage points to 36.0% in Q3, showcasing operational excellence.

From a valuation standpoint, WT is trading at roughly 13.1X forward earnings—a 37% discount to its 10-year median and 75% below 10-year highs. The stock recently found support at its 50-week moving average, trading 31% below Zacks price targets. Despite its 73% surge over two years, WT remains 60% below 2015 peaks, offering tremendous asymmetric risk-reward. The 1.2% dividend adds another layer of downside protection.

Investors eyeing an earnings release on January 31 may find this beaten-down fintech stock attractive for core portfolio exposure.

SoFi Technologies: The Digital Banking Disruptor Trading Below Potential

SoFi Technologies (SOFI) has staged a remarkable 135% rally in just six months, yet the stock still trades over 25% below its 2021 highs—currently hovering around $18 per share. This resilient performer exemplifies a best stock under 20 dollars with legitimate growth legs still ahead.

SoFi operates as a comprehensive consumer finance ecosystem. Members can access banking, personal loans, credit cards, investment products, insurance, and premium alternative asset opportunities through a single integrated platform. This one-stop-shop advantage creates powerful network effects and customer stickiness.

The membership trajectory is nothing short of impressive. SoFi grew its member base by 35% year-over-year in Q3, reaching 9.4 million members—and has since crossed the 10 million milestone. Users are actively embracing expanded offerings including robo-advisory services, early IPO access, interval funds, private credit, private real estate, and private venture investments. This shift toward higher-margin, capital-light revenue streams is reshaping the company’s profitability profile.

The business is inflecting toward profitability. SoFi reported its fourth consecutive quarter of GAAP net income in Q3. Financial Services and Tech Platform units generated 49% of net revenue (versus 39% in the year-ago period), and these segments combined grew revenue 64% year-over-year. CEO Anthony Noto highlighted this deliberate pivot toward “higher ROE, fee-based revenue streams”—a critical metric for long-term margin expansion.

Wall Street’s earnings outlook is decidedly bullish. Revenue is projected to grow 22% in 2024 and 18% in 2025, reaching $2.97 billion (adding nearly $1 billion versus 2023). More impressively, the company swings from an adjusted loss of -$0.36 per share in FY23 to +$0.12 in 2024, then surges 144% to $0.29 in FY25. SoFi’s upward earnings revisions earned it a Zacks Rank #1 (Strong Buy), and it beat estimates by 25% last quarter.

On valuation, SOFI trades at 58X forward earnings—admittedly premium—but the 1.2 PEG ratio combined with 35% discount to Tech peers reflects justified pricing for its growth profile. The stock recently rallied above its 21-day and 50-day moving averages, though it faces potential volatility around its January 27 earnings release.

Why These Two Under-$20 Stocks Matter Now

Both WisdomTree and SoFi represent asymmetric opportunities in the current market environment. WT offers defensive exposure to the ETF boom with expanding margins, while SOFI provides leveraged exposure to the fintech secular tailwind with improving unit economics.

The combination of Q4 earnings momentum, projected sector-wide EPS growth, and potential Fed rate cuts creates an ideal environment for these fundamentally compelling names. Best stocks under 20 dollars often hide in plain sight—watch these two closely heading into their earnings events this month.