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2 Intriguing Tech Stocks to Buy under $20: STNE, PATH

Among the Zacks Rank #1 (Strong Buy) list, a few tech stocks are standing out in terms of their affordability at under $20 a share.

Specifically, StoneCo (STNE - Free Report)  and UiPath (PATH - Free Report)  are emerging from the top-rated Zacks Internet-Software Industry, which is currently in the top 28% of over 240 Zacks industries.  

While StoneCo stock looks poised for higher highs, UiPath shares may be in store for a sharp rebound, as both are benefiting from a positive trend of earnings estimate revisions.

It’s also noteworthy that their niches within the internet software realm should make them viable long-term investments, with StoneCo providing financial technology solutions for e-commerce applications primarily in Brazil, and UiPath offering Robotic Process Automation solutions for digital business operations.

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Expansive Sales Growth

Serving the largest economy in South America, StoneCo’s post-pandemic expansion has been captivating, with annual sales climbing from $644 million in 2020 to over $2.4 billion last year. Furthermore, StoneCo’s sales are now expected to rise 7% in fiscal 2025 and are projected to increase another 5% in FY26 to $2.78 billion.

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As for UiPath, which is headquartered in New York, the increased use of robots, software algorithms, and AI-driven systems is starting to expand its top line as companies look to streamline line tasks that were traditionally handled by humans (Robotics Automation).

Going public in 2021, UiPath’s sales are slated to spike 10% in its current fiscal 2026 and are projected to increase another 8% in FY27 to $1.7 billion.

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Positive EPS Revisions

Most importantly, as beneficiaries of a strong business industry, StoneCo and UiPath are taking advantage of their sales growth and are expected to post double-digit EPS growth for the foreseeable future.

Notably, over the last 60 days, StoneCo’s FY25 and FY26 EPS estimates are up over 7%, respectively (F1 & F2 below).

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Pivoting to UiPath, its FY26 and FY27 EPS revisions have shot up over 14% in the last two months, echoing the plausibility of a rebound.

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Bottom Line

StoneCo and UiPath are certainly two of the more intriguing stocks to buy at under $20 a share, with STNE trading at a 52-week high of $18 and PATH starting to rebound off its one-year low of $9. It may be a stretch to call them “cheap” when considering valuation, but these highly ranked internet-software stocks are still trading under 20X forward earnings, making the risk-to-reward favorable.


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