Under $20 stocks are the way to go, as J.P. Morgan forecasts a “soft landing” for the U.S. economy this year, and with persistent inflation, Middle East tensions, and the upcoming U.S. election, investors will certainly want to err on the side of caution.
The economy as a whole is under pressure, at least until we get the next of three rate cuts, which could make it hard for the stock market. J.P. Morgan expects only modest earnings growth and is careful with risky assets. Morningstar recommends a move toward value stocks and small to mid-cap stocks.
In addition, now is the time to invest in under $20 stocks, as J.P. Morgan predicts the Federal Reserve will start lowering the Fed Funds rate in the middle of the year, to get it to a range of 4.00% to 4.25% by the end of 2024.
The first among our under $20 stocks is a famous American car company with a 24% upside that is now making great progress in electric cars. The next one is a Bitcoin (BTC-USD) miner that has a possible 77% gain and is getting bigger after the fourth split. Lastly, a stock is set to make a lot of money now that it has split its operations, now focusing on the Thacker Pass project full-time, leading to a potential 78% rise in value.
Ford Motor (F)
Ford Motor (NYSE:F) sold more hybrid cars than ever before in April, a 60% rise from the previous year, building on first-quarter sales growth of 86%. Ford’s targeting a production goal of 2 million units by 2026, having committed over $50 billion towards its electric vehicle (EV) initiatives under a Ford+ (Ford Plus) strategy emphasizing EVs.
Under the plan, Ford will turn its Ontario Oakville Assembly Plant into a complex for making electric cars. New three-row electric vehicles will be available in 2027. The Tennessee Electric Vehicle Center is part of the BlueOval City project in Tennessee, which plans to start making a new electric truck by 2026.
As part of its Climate Action Plan, the City of Dallas has teamed up with Ford Pro to improve its EV charging facilities. The goal is to have all of the city’s vehicles run on electricity by 2040; the deal greatly bolsters Ford’s image in the EV business.
Regarding products, Ford just debuted the updated 2024 Ranger vehicle in North America. In order to highlight its high-performance off-road vehicles, Ford is also previewing the new Ford Raptor for the 2025 Dakar Rally; GPS, Apple CarPlay, Android Auto, and a 12-speaker Bang & Olufsen sound system are standard on all Ranger Raptors.
Riot Platforms (RIOT)
Riot Platforms’ (NASDAQ:RIOT) net income for the first quarter was $211.8 million, 1,000% more than the year-ago period, thanks to a big rise in Bitcoin’s value, which also led to a 55.4% year-over-year rise in mining earnings, which reached $74.6 million.
Even with these improvements, Riot Platforms’ overall income for the quarter was $79.3 million, which was about 14% less than what analysts had predicted, chiefly because mining difficulty is going up.
Things will only get tougher for Riot Platforms moving forward, especially considering the fourth Bitcoin halving, which took place on April 19, split Bitcoin’s mining reward in half.
Riot Platforms understands this situation, which is why it’s improving its infrastructure smartly. It aims to reach a total self-mining hash rate capacity of 31 EH/s by the end of 2024.
When its generator turned on, the Corsicana Facility took a big step toward becoming the biggest known Bitcoin mining facility. Riot’s ability to mine for itself should grow by 16 EH/s just because of this plant alone by the end of 2024.
Riot Platforms has also announced placing large orders for more miners, including requests for 33,280 immersion miners and a possible extra 66,560 miners. When they are all set up, they could increase Riot’s output by up to 28 EH/s.
Lithium Americas (LAC, LAAC)
Lithium Americas (NYSE:LAC) has split into two parts, making Lithium Americas (Argentina) Corp (NYSE:LAAC) a separate unit in Argentina, while LAC is advancing the Thacker Pass project.
In Nevada’s Humboldt County, the Thacker Pass project wants to make 80,000 tonnes of battery-grade lithium carbonate every year, making it one of the biggest lithium makers in North America. After getting state permissions and court orders, the building began in early 2023. It’ll improve the U.S. lithium supply chain, which is important for electric cars, and make the U.S. less reliant on lithium sources from other countries.
The processing plants were built with loans from different sources, including a $2.26 billion credit from the U.S. Department of Energy; General Motors (NYSE:GM) also contributed $650 million to the project as a key partner.
Bechtel and Thacker Pass have an EPCM deal. The main building work is set to start in the second half of 2024, and phase 1 production will start in 2026, meaning it’s not too late to get in on the action, making this a hidden gem among under $20 stocks.
On the date of publication, Faizan Farooque 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.
