U.S. stocks have continued their climb in 2020, with Dow, S&P 500, and Nasdaq all right at new all-time highs as outward tensions between the U.S. and Iran ease. On top of that, the U.S. and China are officially expected to sign the phase-one trade deal this Wednesday.
The first settlement on the U.S.-China trade war front, coupled with historically low U.S. unemployment, low interest rates, and a projected return to corporate earnings growth, could set up Wall Street for another strong year in 2020 (also read: Why Stocks Are Poised To Soar In 2020).
With this in mind, now might be a solid time for investors to find a few low-priced stocks to add to their portfolios. Today we found three buy-ranked stocks, with the help our Zacks Stock Screener, that are currently trading for under $10 per share that investors might want to buy now for 2020…
Barclays PLC BCS
Prior Close: $9.42 USD
Barclays PLC shares have surged 20% in the last three months and more certainty surrounding Brexit could help the stock going forward, which still trades far below its five-year highs. The UK banking powerhouse posted stronger-than-projected Q3 earnings results. The company’s investment-banking unit, which saw its fees surge 33%, helped drive overall expansion.
Investors should also note that Barclays has gained market share. BCS reportedly surpassed Citigroup’s C share of investment banking revenue in the U.S. in the first three quarters. Barclays’ growing diversification could also play a key role moving forward. Meanwhile, BCS’ adjusted earnings are projected to climb in 2019 and 2020, with revenue expected to surge roughly 6% in 2020.
Barclays’ positive earnings revisions activity helps it earn a Zacks Rank #1 (Strong Buy) at the moment. BCS also holds “B” grades for Value and Momentum in our Style Scores system, with the stock trading at 7.3X 12-month forward earnings estimates. This marks a discount against its industry’s 10.6X average and its own three-year median of 8.2X. Plus, Barclays’ dividend yield rests at solid 3.07%, which tops Bank of America BAC and Goldman Sachs GS.
Tesco PLC TSCDY
Prior Close: $9.67 USD
Tesco is a UK multinational grocery and retail powerhouse that has seen its stock price jump 14% in the last 12 months and 30% in the past three years. Britain's biggest supermarket group (expected to pull in $83 billion vs. Target’s TGT $79 billion) recently announced that it posted its “fifth consecutive Christmas of growth” in the UK despite a “subdued” market. TSCDY’s adjusted 2019 earnings are projected to surge 14.6% on 12.3% higher sales, with its EPS figure set to pop another 8.5% on 1.4% higher revenue in 2020.
Tesco’s positive earnings revisions help it hold a Zacks Rank #2 (Buy). The stock also sports “A” grades for Value and Momentum, along with a “B” grade for Growth. TSCDY’s 2.09% dividend yield tops the 10-year U.S. Treasury note’s 1.84% payout and Walmart’s WMT 1.82%.
Tesco is also part of an industry that rests in the top 18% of our more than 250 Zacks industries. Plus, Tesco in November became the first major British supermarket chain to offer a subscription customer loyalty program. Tesco Clubcard Plus is designed to help it fight off discount retail encroachment and management has been pleased with its early results.
Nordic American Tankers Limited NAT
Prior Close: $4.50 USD
Nordic American Tankers Limited is a Bermuda-based firm that currently operates 23 Suezmax tankers. The fleet, with an average age of about 11 years, has a cargo lifting capacity of 1 million barrels of crude oil each. Nordic American Tankers management said last quarter that they are in the “strongest tanker market” in decades, and industry executives expect freight rates to remain high in 2020.
Management noted in December that it “fixed a string of our vessels for voyages extending well into the New Year and the first quarter of 2020. These spot voyages are generating in the range of $35,000 per day to $80,000 per day per ship.” NAT is a Zacks Rank #2 (Buy) at the moment that boasts an “A” grade for Momentum. The company’s dividend yield comes in at 1.72% and its Transportation – Shipping industry rests in the top 28% of over 250 Zacks industries.
NAT is by far the “cheapest” stock on our list today. NAT shares have skyrocketed over 100% in the last six months and still have tons of room to climb before they run into their five-year highs of roughly $15 per share. Looking ahead, NAT’s adjusted Q4 2019 earnings are projected to soar from -$0.05 to +$0.19 on 65% higher sales. The company’s 2020 outlook also appears strong, with its bottom-line expected to skyrocket from +$0.03 to +$0.57 on 26% sales expansion.
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