You get what you pay for is not just an adage in retail but also in the equities sector, which then raises doubts about stocks under $20 to buy. While everybody likes a good deal, sometimes a deal can be too good. In many cases, a cheap security wallows under the radar for a reason – and usually not a good one.

At the same time, you don’t want to dismiss affordable stocks with growth potential off the bat. Yes, when something’s too good to be true, it usually is. Again, another retail adage applies to the equities space. Nevertheless, you must also consider that U.S. exchanges alone feature thousands upon thousands of publicly traded companies.

I’m sorry but there’s just no way that mainstream analysts can cover every opportunity adequately. Occasionally, some high-level prospects fall through the cracks. So, if you’re willing to have an open mind, these are the stocks to buy under $20.

Vipshop (VIPS)

A leading online discount retailer for brands in China, Vipshop (NYSE:VIPS) offers high-quality and popular branded products to consumers throughout its home nation at a significant discount to retail prices. Since its founding in August 2008, Vipshop has rapidly built a sizeable and growing base of customers and brand partners, according to its corporate profile. Thanks to its relevancy, VIPS ranks among the stocks under $20 to buy now.

True, Vipshop aligns with the consumer discretionary market, which carries risk under this ambiguous global economic environment. At the same time, I’m encouraged that following its long battle with Covid-19 – along with draconian governmental policies to address the crisis – the Chinese consumer economy has demonstrated positive momentum. Therefore, it’s one of the affordable stocks with growth potential.

As a bonus, the market prices VIPS at a forward multiple of 8.52. As a discount to projected earnings, Vipshop ranks better than 82.83% of enterprises in the cyclical retail sector. Finally, analysts peg VIPS as a consensus strong buy with a high side price target of $19 (implying nearly 14% upside).

Enerplus (ERF)

One of Canada’s largest independent oil and gas producers, Enerplus (NYSE:ERF) in some ways represents a hidden gem among stocks under $20 to buy now. Because of the vagaries in the global economy – particularly with the hydrocarbon sector – Enerplus and its ilk got off to a rough start this year. For ERF specifically, it’s down more than 12% since the January opener. Presently, it trades hands for $14.20 per share.

Still, once social normalization trends fully bloom – such as the return to the office – traffic volume should reach pre-pandemic norms if not move beyond them. As a result, ERF could rank among the affordable stocks with growth potential.

Further, the uncertainty in the energy market has created a compelling discount for contrarians. Right now, the market prices ERF at a forward multiple of 5.9. As a discount to projected earnings, Enerplus ranks better than 65.06% of the competition. Lastly, analysts peg ERF as a consensus strong buy. Their average price target clocks in at $20.21, implying over 42% upside potential.

LSI Industries (LYTS)

Headquartered in Cincinnati, Ohio, LSI Industries (NASDAQ:LYTS), according to its website, manufactures commercial lighting solutions, advanced graphic and image solutions, and digital and retail display solutions. Notably, its commercial lighting group consists of high-performance, U.S.-made lighting products, and control systems. It’s a small capitalization play with a price tag of $12.32 at the time of writing.

To be sure, LYTS incurred choppy trading throughout this year, leading to a return of just slightly over parity. However, in the past 365 days, shares almost doubled in value. Nevertheless, contrarian investors of stocks under $20 to buy now can still enjoy a discount. Currently, the market prices shares at a forward multiple of 12.45. As a discount to projected earnings, LSI ranks better than 76.39% of its peers.

On the operational front, it also holds its own. For example, its three-year revenue growth rate on a per-share basis hits 8.9%, beating out 64.85% of the competition. To close, analysts peg LYTS as a consensus moderate buy. Their average price target lands at $20, implying over 62% upside potential, making it one of the stocks to buy for speculators.

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.