Top 10 Stocks Under $20

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 a Zacks Rank #1 (Strong Buy), and a variety of other factors make these companies stand out as having strong upside potential. We’ve also spread this list across different sectors and industries so investors looking for low-priced stocks can put together a diverse portfolio.

1.       Braskem SA (BAK)

Prior Close: $19.55

Braskem SA is the largest petrochemical operation in Latin America and among the five largest private companies in Brazil. The company’s current-quarter Zacks Consensus Estimate for earnings has gained five cents over the last 30 days, and based on these new figures, we expect Braskem to record EPS growth of about 300% on revenue growth of 15.69%. These metrics have helped Braskem earn an “A” grade in every category of our Style Scores system.

 

2.       Daktronics Inc. (DAKT)

Prior Close: $10.29

Daktronics Inc. is one of the world's largest suppliers of electronic scoreboards, computer-programmable displays, and large screen video displays and control systems. The stock is on an impressive run right now, as shares have gained nearly 12% over the past four weeks. This has helped the company earn an “A” grade for Momentum, which has boosted its overall VGM score to “A.” Furthermore, Daktronics is projected to post EPS growth of nearly 540% this fiscal year.

 

3.       Lufthansa German Airlines (DLAKY)

Prior Close: $13.23

Lufthansa Airlines is autonomous unit of the larger Lufthansa Group and operates stations, check-ins, ticket sales and other services at all the major international airports. The airline industry is known for its impressive value metrics, but Lufthansa’s P/E ratio of 4.95 still sticks out, and its earnings yield of 19.87% also beats the industry average handily. Overall, the stock has an “A” grade for Value, Growth, and VGM.

 

4.       FutureFuel Chemical Company (FF)

Prior Close: $15.77

FutureFuel Chemical Company manufacturers diversified chemical products and bio-based products comprised of biofuels and bio-based specialty chemical products. FutureFuel’s current-quarter Zacks Consensus Estimate for earnings has gained three cents in the last 30 days, and the stock has earned Style Score grades of “A” for Value, Growth, and VGM. Additionally, the “Biofuels” category of businesses currently falls into the top 20% of the Zacks Industry Rank.

 

5.       KEMET Corporation (KEM)

Prior Close: $6.48

KEMET Corporation is the world's largest manufacturer of solid tantalum capacitors and one of the world's largest manufacturer of multilayer ceramic capacitors. The company is looking to continue its impressive earnings momentum after beating the Zacks Consensus Estimate by 175% last quarter, and current estimates predict that KEMET will post EPS growth of nearly 217% on revenue growth of 3.76% this quarter. KEMET is yet another stock with an overall VGM score of “A,” backed by strong metrics in the Value and Growth categories.

 

6.       KVH Industries (KVHI)

Prior Close: 11.80

KVH Industries is a leading provider of in-motion satellite TV and communication systems for use on boats, RVs, trucks, buses, and automobiles. We are seeing solid earnings estimate revision activity for KVH’s next fiscal quarter, as the Zacks Consensus Estimate for that time period has gained 30 cents over the last 60 days. The stock also has an overall VGM grade of “A” and the company has surpassed the Zacks Consensus Estimate by an average of 180.55% in each of the trailing three quarters.

 

7.       Sucampo Pharmaceuticals (SCMP)

Prior Close: $15.25

Sucampo Pharmaceuticals is a pharmaceutical company focused on the discovery and commercialization of drugs based on prostones, a class of compounds derived from fatty acids that occur naturally in the human body. The company’s current-quarter Zacks Consensus Estimate for earnings has gained five cents in just the last seven days, and these updated figures indicate that Sucampo could record EPS growth of 11.36% on revenue growth of 15.58% this quarter. The stock has also earned a VGM score of “A” thanks to its “A” grades in all of our Style Scores categories.

 

8.       Tilly’s Inc. (TLYS)

Prior Close: 15.11

Tilly's, Inc. is a specialty retailer in the action sports industry selling clothing, shoes and accessories. The stock has gained nearly 125% year-to-date, making it one of the best performers in a retail industry that has gained just 6.43% on average. The company’s current-quarter Zacks Consensus Estimate for earnings has gained two cents over the last 30 days, and we now expect Tilly’s to post EPS growth of nearly 87% this quarter.

 

9.       TTM Technologies (TTMI)

Prior Close: $13.65

TTM Technologies provides time-critical, one-stop manufacturing services for highly complex printed circuit boards for use in routers, switches, computer memory modules, and communications infrastructure equipment. The company has earned an “A” grade for Value, Growth, and VGM, and its current-quarter Zacks Consensus Estimate for earnings has gained 12 cents over the past 30 days. The updated figure now represents EPS growth of 400%.

 

10.   USD Partners LP (USDP)

Prior Close: $14.90

USD Partners LP acquires, develops and operates energy-related rail terminals and other and complementary midstream infrastructure assets and businesses. The stock has gained more than 100% year-to-date, and the company is looking to continue that momentum with another impressive quarter. Current-quarter estimates point to EPS growth of 33.33% on revenue growth of 10.83%. Also, the stock has earned a VGM grade of “A” with “A” grades in Value and Growth.

 

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. All of the stocks highlighted here hold a Zacks Rank #1 (Strong Buy) rankings, while also possessing other qualities that help them stick out. For smaller investors looking to get into solid stocks at lower prices, this list is a great place to start and all of these companies could just be great picks going forward.

Stocks that Aren't in the News. Yet.

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LUFTHANSA -ADR (DLAKY): Free Stock Analysis Report
 
KVH INDUSTRIES (KVHI): Free Stock Analysis Report
 
TTM TECHNOLOGIE (TTMI): Free Stock Analysis Report
 
KEMET CORP (KEM): Free Stock Analysis Report
 
DAKTRONICS INC (DAKT): Free Stock Analysis Report
 
SUCAMPO PHARMAC (SCMP): Free Stock Analysis Report
 
BRASKEM SA (BAK): Free Stock Analysis Report
 
FUTUREFUEL CORP (FF): Free Stock Analysis Report
 
TILLYS INC (TLYS): Free Stock Analysis Report
 
USD PARTNERS (USDP): Free Stock Analysis Report
 
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