Top Five Tech Stocks Under $10
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.
Additionally, we use the Zacks Industry Rank to find the aggregate Zacks Rank for a specific segment of the market. Right now, we are seeing several technology-related segments near the top of the Zacks Industry Rank. In fact, out of about 220 Zacks Rank #1 (Strong Buy) stocks, 48 are related to the computer industry.
Today, we’re taking a look at the combination of both of these things: low-priced tech stocks. 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.
1. NetSol Technologies (NTWK)
Prior Closing Price: $6.97
NetSol Technologies is a multinational provider of enterprise software and IT services to the financial services industry. In the past 60 days, we have seen a positive estimate revision for the company’s current quarter and annual earnings. Additionally, NTWK has an “A” grade in the weighted average VGM category of our Style Scores system. The company has exceeded earnings expectations by an average of 257.63% over the trailing four quarters, and its earnings are expected to grow by over 140% this year.
2. IEC Electronics Corp. (IEC)
Prior Closing Price: $4.94
IEC Electronics Corp. is a full service contract manufacturer employing state-of-the-art production utilizing both surface mount and pin-through-hole technology. In the past 60 days, we have seen two positive estimate revisions for the company’s current quarter and annual earnings. IEC also has an “A” grade in the weighted average VGM category. Additionally, the company smashed its prior earnings estimates by 1,400%, and its annual earnings are expected to grow by over 1,480% from last year.
3. Qumu Corp. (QUMU)
Prior Closing Price: $4.26
Qumu Corp. provides enterprise video solutions. Over the past 60 days, we have seen three positive revisions for Qumu’s annual earnings. Furthermore, the company has an “A” grade for Momentum in our Style Scores system and has gained over 70% year-to-date. With a price target of $5.00, QUMU could still be ready to move double-digit percentage points. The company is also expecting to see sales growth of 27.26%, much higher than that of its industry peers.
4. Bazaarvoice Inc. (BV)
Prior Closing Price: $3.08
Bazaarvoice, Inc. provides social commerce solutions through Bazaarvoice, a Software-as-a-Service platform that enables clients to capture, display, and analyze online sentiment. In the past 60 days, we have seen three positive revisions for the company’s annual earnings. Over the past four quarters, Bazaarvoice has exceeded its earnings expectations by an average of 28.90%. While its segment falls in the top 13% of the Zacks Industry rank, BV’s P/S ratio of 1.30 and P/B ratio of 1.37 smash the industry average.
5. Brocade Communications Systems (BRCD)
Prior Closing Price: $9.19
Brocade Communications Systems provides platforms, solutions, and services for intelligently connecting, managing, and optimizing IT resources in shared storage environments. We have seen three positive revisions for the company’s annual earnings within the past 60 days. It has a solid P/E ratio of 10.17, as well as an “A” grade for Momentum. Its net margin of 15.33% soars above the industry average, and the stock has gained over 15% on the year already.
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 be impressive picks going forward.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
QUMU CORP (QUMU): Free Stock Analysis Report
NETSOL TECH INC (NTWK): Free Stock Analysis Report
IEC ELECTRS NEW (IEC): Free Stock Analysis Report
BAZAARVOICE INC (BV): Free Stock Analysis Report
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