Growth stocks are companies with the potential to grow their businesses faster than the industry average, thereby delivering superior long-term returns. These companies typically reinvest their earnings to fuel expansion rather than distribute dividends. However, since their operations are still in early stages of development, these companies may pose higher investment risks. Against this backdrop, let’s look at two high-quality growth stocks trading under $20.
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BlackBerry
BlackBerry (TSX:BB), which offers intelligent security software and services, is my first pick. The Waterloo-based company reported impressive second-quarter results for fiscal 2026, beating guidance. Its revenue of $129.6 million beat its internal guidance of $115-$125 million amid healthy performances from its QNX, Secure Communications, and Licensing segments. Year over year, the company’s revenue grew 2.7%, driven by a 15.4% increase in the QNX segment and a 32% increase in the Licensing segment. Although revenue from the Secure Communication segment fell 10.1% to $59.9 million, it was above the earlier guidance of $54-$59 million.
Supported by its top-line growth, expansion of gross margins, and decline in adjusted research and development and general and administrative expenses, BlackBerry’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 71.5% to $25.9 million. Also, its adjusted EBITDA margin expanded from 12% to 20%. Additionally, its net income was $13.3 million. However, removing special or one-time items, its adjusted net income stood at $24.2 million, representing a substantial improvement from a loss of $2.6 million. Although its cash, cash equivalents, and short- and long-term investments declined by $18.4 million to $363.5 million, the company remains well-positioned to finance its growth initiatives.
Moreover, BlackBerry is well-positioned for long-term growth, driven by increasing vehicle complexity, rising demand for advanced computing in automobiles, and a growing emphasis on safety-critical systems. The company is also bolstering its presence in the secure communications space through offerings such as BlackBerry UEM, BlackBerry AtHoc, and BlackBerry SecuSUITE. Also, the company has a solid customer base and enjoys a healthy retention rate, thereby providing stability to its financials. Given its improving financial performance and healthy growth prospects, I believe BlackBerry would be an excellent under-$20 growth stock for your long-term portfolio.
5N Plus
Second on my list is 5N Plus (TSX:VNP), which develops, manufactures, and markets specialty semiconductors and performance materials. Backed by a strong first-half performance, the company has seen robust investor interest, driving its stock price up by roughly 160% year to date. In the recently reported second quarter, revenue rose 28% to $95.3 million, supported by strong specialty semiconductor sales driven by growing demand in terrestrial renewable energy and space solar power markets, as well as improved pricing for bismuth-based products in the performance materials segment.
Supported by top-line growth and the expansion of gross margin, the company’s adjusted EBITDA grew 79% to $24.1 million. Meanwhile, its net income rose 216.7% to $15.2 million, while its net debt fell from $100.1 million to $74.3 million. By the end of the second quarter, the company’s net debt-to-EBITDA ratio stood at 1.09, reflecting its solid financial position. Additionally, management anticipates growing demand for specialty semiconductors as the terrestrial renewable energy and space solar power markets continue to expand. Its strategic global footprint, strong sourcing capabilities, and higher-quality products provide an edge over its peers in this evolving geopolitical environment. Considering all these factors, I believe the uptrend in 5N Plus’s financials and stock price will continue.
