Cheap Stocks to Buy Now: Lionbridge Technologies (LIOX)
Lionbridge (LIOX) is a perfect small-cap play. The stock is up more than 80% in the last 12 months, showing strong momentum, but remains soundly under $10 a share. The company is soundly profitable and has posted 11 consecutive quarters of revenue growth, according to Standard & Poor’s data.
So what does Lionbridge do, exactly? Well, the company focuses on language translation software, with major clients that include Microsoft and Google, among others. In the past few years, the company has grappled with cutbacks and soft enterprise spending but has managed to retain enough big firms and filled in the blanks with smaller ones to keep the business moving in the right direction.
Case in point: LIOX’s recent acquisition of key China clients that will deliver an additional $3 million in revenue — news that sparked a nearly double-digit rally in one day for the stock.
Margins could improve along with sales in the coming quarters to boost this cheap stock even higher. LIOX just reported record quarterly revenue in its Q4 2013 report, for instance, showing 12% year-over-year growth. Net income also nearly doubled over 2012 numbers.
While there’s always the risk that businesses will spend less on IT, recent improvement shows that LIOX has momentum on its side right now and remains a hot tech play. Furthermore, translation technology in this age of global internet connectivity remains a great opportunity for growth.