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 ten stocks that are currently trading for under $20 per share. All of these stocks currently have at least a Zacks Rank #2 (Buy), and a variety of other factors make these companies stand out as having strong upside potential.
Top 10 Stocks Under $20: Commercial Vehicle Group, Inc. (CVGI)
Prior Close: $10.10
Commercial Vehicle Group, Inc. (NASDAQ:CVGI) is a provider of interior and vision safety systems for the global commercial vehicle industry. The stock is trading at just 8x earnings and 0.43x sales, but shares have also surged more than 60% over the past year, so these enticing valuation metrics are hardly coming at a moment of weakness.
Meanwhile, earnings are expected to improve by nearly 60% in the current year and then a further 165% in the upcoming fiscal year. Overall, the stock is sporting an “A” in the VGM category of our Style Scores system.
Top 10 Stocks Under $20: Rocky Brands Inc (RCKY)
Prior Close: $19.05
Rocky Brands Inc (NASDAQ:RCKY) is a leading footwear and apparel maker, and its portfolio includes brands such as Durango, Lehigh, Dickies, and Georgia Boot. RCKY is currently sporting both a Zacks Rank #1 (Strong Buy) and a “B” grade for VGM.
After crushing earnings estimates by 48% in the most recent quarter, Rocky Brands witnessed positive forward-looking revision activity. Still, the stock is trading at just 14x forward earnings.
Top 10 Stocks Under $20: Sally Beauty Holdings, Inc. (SBH)
Prior Close: $16.73
Sally Beauty Holdings, Inc. (NYSE:SBH) is an international specialty retailer and distributor of professional beauty products. The company operates Sally Beauty, CosmoProf, and Armstrong McCall stores. The company surpassed earnings estimates in its most recent quarter, and a solid outlook inspired positive revisions to its current and next fiscal year earnings estimates.
Nevertheless, the stock is trading below 7x forward earnings, so investors have plenty of room to benefit from this improved profit outlook. Meanwhile, shares have popped about 5% this month, indicating that SBH does want to move higher.
Top 10 Stocks Under $20: Kemet Corporation (KEM)
Prior Close: $17.67
Kemet Corporation (NYSE:KEM) and its subsidiaries make up one of the world’s largest manufacturers of solid tantalum capacitors and multilayer ceramic capacitors, the two fastest growing sectors of the U.S. capacitor industry.
Kemet crushed the Zacks Consensus Estimate by nearly 53% in its recent quarter, putting itself on track to see full-year earnings growth of 300%. Revenues are also projected to improve by over 50%. KEM has a Zacks Rank #2 (Buy), as well as an “A” grade in each of our Style Scores categories.
Top 10 Stocks Under $20: Harsco Corporation (HSC)
Prior Close: $19.88
Harsco Corporation (NYSE:HSC) is a services and engineered products company. The firm provides mill services to metal producers, gas control products, railway maintenance services, and scaffolding services, among other things.
Harsco has garnered serious earnings momentum after beating estimates by an average of 134% in each of the trailing four quarters. Current estimates are now calling for EPS growth of 49% this fiscal year and 14% next fiscal year. Meanwhile, the stock has a P/S ratio of just 0.99, so investors are also getting a decent price for the company’s revenue picture.
Top 10 Stocks Under $20: Unisys Corporation (UIS)
Prior Close: $11.30
Unisys Corporation (NYSE:UIS) is a worldwide technology services and solutions company. The stock is currently sporting a Zacks Rank #1 (Strong Buy) and an “A” grade for Growth. UIS is also sporting an “A” grade in the Value category.
Unisys is projected to see its bottom line improve by 95.3% in the current fiscal year. The company was also able to reverse its trend of five-consecutive negative surprises in the latest quarter, signaling that its fortunes could be turning.
Top 10 Stocks Under $20: Super Micro Computer, Inc. (SMCI)
Prior Close: $18.05
Super Micro Computer, Inc. (NASDAQ:SMCI) designs, develops, manufactures and sells energy-efficient, application optimized server solutions based on the x86 architecture. SMCI stock is a brand-new Zacks Rank #1 (Strong Buy) and also sports an “A” grade for Value. SMCI is trading at just 11x earnings, offering investors a great value opportunity in the tech sector.
Earnings estimates are on the rise for current and future quarters, and the company itself is expected to expand nicely. For example, total revenues are projected to improve by 20% in the current year.
Top 10 Stocks Under $20: Electro Scientific Industries, Inc. (ESIO)
Prior Close: $17.51
Electro Scientific Industries, Inc. (NASDAQ:ESIO) designs products used in electronics manufacturing, including laser manufacturing systems and production and test equipment. ESIO is currently sporting a Zacks Rank #1 (Strong Buy), as well as an “A” grade in our Growth category.
Adjusted earnings are projected to explode into the green this year, and the company is expected to improve its bottom line at an annualized rate of 12% over the next three to five years. The stock has skyrocketed more than 160% over the past year, but with a price slump over the past four weeks, investors can now buy at a discount.
Top 10 Stocks Under $20: Xplore Technologies Corp. (XPLR)
Prior Close: $2.96
Xplore Technologies Corp. (NASDAQ:XPLR) is engaged in the business of developing integrating and marketing mobile wireless tablet PC computing systems. Having gained more than 12% over the past 12 weeks and nearly 8% within the last month, XPLR has emerged as an interesting momentum pick during these volatile weeks.
XPLR stock is also holding a Zacks Rank #1 (Strong Buy). Meanwhile, the stock has a beta rating of just 0.77, so it should hypothetically be less volatile than the market average—a feature that not many low-priced stocks can flaunt.
Top 10 Stocks Under $20: Ecopetrol SA (EC)
Prior Close: $17.24
Ecopetrol SA (NYSE:EC) is a petroleum company focused on identifying opportunities primarily in Columbia and northern Peru. EC is holding a Zacks Rank #1 (Strong Buy), as well as an “A” grade for Value.
EC stock is also a nice growth pick, as Ecopetrol is projected to improve its earnings at an annualized rate of 40% over the next few years. Shares have risen more than 45% over the past three months and could be attractive to momentum investors.
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