The Dow, S&P 500, and the Nasdaq all climbed again Wednesday to extend their solid start to February. Wall Street appears to have moved on from coronavirus fears, at least for now, as earnings come in stronger-than-expected. In fact, the S&P 500 and the Nasdaq both closed at new records.
Along with solid quarterly earnings results from some of the biggest companies on the market, including Apple AAPL, Amazon AMZN, and Microsoft MFST, the U.S. nonfarm private sector added 291,000 jobs in January. This blew away economists’ expectations, with small- and medium-sized businesses helping drive the growth.
On top of that, the market could continue its climb in 2020 on the back of low interest rates, historically low U.S. unemployment, an expected return to corporate earnings growth, and more.
Therefore, now seems like a good time for investors to add to their portfolios. And the category we focus on today are cheap stocks trading under $10 per share.
Stocks trading under $10 can be more volatile than their pricier peers, but investors can still grab big returns with the right cheap stocks. So, let’s dive into 3 that we found…
Inseego Corp. INSG
Prior Close: $7.70 USD
Inseego sells modems, routers, and more that aim to enhance device-to-cloud capabilities. The firm tries to “connect your fleets, people, devices, and assets with enterprise-grade intelligent IoT solutions.” INSG also appears poised to expand as we enter the 5G age, having already rolled out 5G hotspots. “We’re now extending our early 5G market leadership through a growing number of trials with top-tier service providers worldwide, and we’re rapidly developing more leading-edge products based on next-gen 5G technology,” CEO Dan Mondor said in prepared Q3 remarks.
The San Diego-based company, which also offers enterprise SaaS solutions, saw its revenue jump 24% last quarter. Our Zacks estimates call for Inseego’s fiscal 2019 revenue to pop 9%, with 2020 projected to come in 21% higher to hit $265.9 million. INSG’s adjusted loss is set to shrink from an expected -$0.19 this year to -$0.01 a share in 2020. Inseego is currently a Zacks Rank #2 (Buy) that sports a “B” grade for Momentum in our Style Scores system.
INSG shares have soared 300% in the last two years and 44% in the past three months. Plus, the stock rests roughly 20% below its highs after a recent pullback, which it has already started to recover from.
Aspen Group Inc. ASPU
Prior Close: $9.56 USD
Aspen Group is an online-focused education holding company that operates Aspen University and United States University. The firm aims to make “college affordable again” and offers everything from certificate programs to doctoral degree programs in fields that include business, technology, nursing, and more. ASPU’s sales have surged in recent years, with its revenues up 55% in both its fiscal 2019 and 2018.
Our Zacks estimates call for Aspen Group’s 2020 revenue to jump over 41%, with 2021 projected to climb another 30% higher to hit $62.7 million. Plus, ASPU is projected to surge from an adjusted loss of -$0.21 a share this year to +$0.02 in fiscal 2021.
Aspen Group’s longer-term earnings revisions have climbed recently to help the stock earn a Zacks Rank #1 (Strong Buy). Aspen Group stock also hit a new 52-week high Wednesday, as part of a 135% climb over the last six months.
Frontline Ltd. FRO
Prior Close: $8.78 USD
Frontline is a global crude oil and refined products shipping company that has expanded its fleet of tankers in recent years. Shares of FRO have fallen in 2020 amid oil demand concerns, driven by coronavirus worries in China. Despite the recent pullback, which might set up a better buying opportunity for those high on Frontline, the stock is up 112% in the last two years and 67% in the past 12 months. And FRO popped 2% Wednesday.
Frontline is a Zacks Rank #1 (Strong Buy) right now that sports an “A” grade for Momentum. FRO is also part of an industry that rests in the top 27% of our more than 250 Zacks industries. Along with its price point, Frontline presents value to shareholders, as it trades at 4.7X forward 12-month Zacks earnings estimates, which marks a significant discount against its industry’s 8.8X average.
Peeking ahead, Frontline’s adjusted FY19 earnings are expected to climb from an adjusted loss of -$0.14 to +$0.79 per share, with FY20 projected to skyrocket another 131% higher to reach $1.82 per share. The company is also expected to see its 2020 revenue surge 44% above our 2019 projected to hit $906.6 million.
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