Here at Zacks, we don’t generally classify stocks as “cheap” or “expensive”, and rather than looking at the stock’s face value, we have a system that puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.
That being said, low-priced stocks can be attractive to smaller investors that can’t necessarily afford large stakes in companies with higher priced stocks. When looking at these low-priced stocks, we can look at the same trends in growth, value, and momentum and apply the Zacks Rank to properly analyze the potential that these companies have.
Today we’ve highlighted three stocks that fall into the broad “technology sector.” Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #2 (Buy) or better. Take a look at the strong estimate revision activity and other factors that make these companies stick out right now.
Tech Stocks Under $10 to Buy Now: Magic Software Enterprises (MGIC)
Prior Close: $9.20
Magic Software Enterprises (NASDAQ:MGIC) is an Israeli enterprise software company that builds products to accelerate the process of deploying applications within existing systems. The stock is currently a Zacks Rank #2 (Buy) and sports an overall VGM grade of “A.”
The company’s P/E ratio of 15.70 and P/S ratio of 1.69 are both better than the Software industry average and help show that shares could be undervalued right now. MGIC is also an interesting growth pick, as our current consensus estimates are calling for EPS growth of 29.5% and sales growth of 25.3% this fiscal year. Finally, with shares up nearly 28% over the past 52 weeks, the stock has outperformed the S&P 500.
Tech Stocks Under $10 to Buy Now: Fitbit, Inc. (FIT)
Prior Close: $6.46
Fitbit, Inc. (NYSE:FIT) manufactures and markets wearable fitness-tracking devices. Although the company’s growth has been slowed by massive competition in the wearables space, management has been proactive recently. The company just introduced its first smartwatch, the Ionic, and it has undergone significant executive shakeup and cost structuring recently.
The stock is currently holding a Zacks Rank #2 (Buy). Fitbit’s earnings and revenue figures will face tough year-over-year comparisons this quarter, but in the important holiday quarter, we expect to see the company post EPS growth of 94%. Also, the company’s “Electronics – Measuring Instruments” industry is currently in the top 6% of the Zacks Industry Rank.
Tech Stocks Under $10 to Buy Now: eGain Corporation (EGAN)
Prior Close: $3.25
eGain Corp (NASDAQ:EGAN) provides customer engagement solutions, including web customer interaction, social customer interaction, and contact center applications. With an “A” grade in the Growth and Momentum categories of our Style Scores system, eGain should be attractive to several types of trend-focused investors.
In its most recent quarter, the company posted break-even EPS figures, smashing the Zacks Consensus Estimate by 100%. Earnings estimates have been on the rise, and the company looks poised to post profits soon. Currently, eGain is a Zacks Rank #1 (Strong Buy).
Bottom Line
A stock’s market price is not a clear indicator of whether it is a good investment. However, the nice thing about the Zacks Rank is that it can be applied to stocks of any price. For smaller investors looking to find solid tech stocks at lower prices, this list is a great place to start.
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