3 ASX stocks under $20 that are screaming buys

Let's see which cheap shares analysts are tipping as buys.

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You don't always need a big budget to invest in quality companies. In fact, some of the most compelling opportunities on the ASX right now are trading well below $20 a share.

Here are three ASX stocks that could be worth a closer look today.

GQG Partners Inc (ASX: GQG)

First up is global fund manager GQG Partners. Despite its low share price of $1.78, this is no small operation. At the last count, GQG manages more than US$172.4 billion in funds for clients worldwide.

Its focus on actively managed global equities has been resonating well with investors in recent years, driving strong inflows and consistent fee revenue. And while its strategies are underperforming today due to its defensive positioning, this is only likely to be a temporary challenge.

For those seeking exposure to a high-quality asset manager with a global footprint, GQG looks compelling at current levels.

Macquarie certainly believes this is the case. It has an outperform rating and $2.64 price target on its shares. It also expects 10%+ dividend yields for the foreseeable future.

NextDC Ltd (ASX: NXT)

Another ASX stock to look at is NextDC. It has established itself as Australia's leading data centre operator, and demand for its services only continues to rise. With the ongoing boom in cloud computing, artificial intelligence, and digital transformation, the need for secure and scalable data centres has never been greater.

Management has been investing heavily in expanding its footprint, with new facilities across Australia and Asia to meet surging demand. While this has meant high capital expenditure, it positions NextDC for long-term growth as more businesses move operations into the cloud.

Trading at $14.36, NextDC gives investors exposure to one of the most powerful megatrends of the next decade. And this could be a bargain price according to analysts at Macquarie, who have an outperform rating and $22.10 price target on its shares.

Webjet Ltd (ASX: WEB)

Finally, online travel technology company Webjet could be an ASX stock under $20 to buy. After the pandemic hit the travel industry hard, it has bounced back strongly as global tourism recovers.

The company's WebBeds business, which supplies hotel accommodation to travel companies around the world, has been a major growth driver. The good news is that it appears well-placed to continue this positive trend long into the future thanks to its sizeable total addressable market.

At $4.56, Webjet offers investors a way to play the continued recovery in travel. And the rewards could be handsome, with Citi recently putting a buy rating and $6.60 price target on its shares.

Motley Fool contributor James Mickleboro has positions in Gqg Partners, Nextdc, and Web Travel Group Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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