The stock market could continue its climb in 2020 for an array of reasons, from low interest rates and historically low U.S. unemployment to an expected return to corporate earnings growth and more. Investors hoping to capitalize on potential 2020 gains likely want to start now.
Today, we dove into a more niche category of securities to look at for 2020: technology industry stocks trading under $10 per share.
Stocks trading under $10 can be more volatile than their pricier peers, but investors can still scoop up big returns with the right low-priced stocks (also read: Why Stocks Are Poised To Soar In 2020).
So let’s dive into three ‘cheap’ tech stocks we found using our Zacks Stock Screener that investors might want to buy in January for 2020…
BlackBerry Limited BB
Prior Close: $6.66
BlackBerry soared to prominence through its once ever-present smartphones, which were eclipsed by Apple AAPL, Samsung, and others. BB has since reinvented itself into an enterprise software and services company, with a focus on security for the Internet of Things age. The Ontario-based firm posted better-than-expected Q3 fiscal 2020 revenue and earnings results on December 20, driven by its licensing and security businesses.
BB shares have surged 36% in the past three months and 22% in the last month to crush its industry’s average. Despite the recent jump, BB stock sits far below its 52-week highs of over $10 per share, which could give BlackBerry room to run in 2020. BlackBerry is also part of an industry that rests in the top 9% of our more than 250 Zacks industries.
On Monday, the company announced a collaboration with Amazon Web Services in the connected vehicle space as part of its larger push to establish itself as a leader in connected-car security. BlackBerry’s positive earnings estimate revision activity helps it earn a Zacks Rank #1 (Strong Buy) at the moment. Plus, our estimates call for BB’s revenue to climb 18% this year and another 10% in fiscal 2021 to reach $1.19 billion.
ChannelAdvisor Corporation ECOM
Prior Close: $9.14 USD
ChannelAdvisor is an e-commerce-focused cloud firm that helps brands and retailers connect with customers, grow sales, and more. ECOM, which has been around since 2001, enables its clients to “securely power” sales and “optimize fulfillment” everywhere from Amazon AMZN to eBay EBAY and has worked with companies such as Target TGT.
ECOM stock has been volatile over the last five years and has traded as high as $13 in the past 52 weeks. Therefore, ChannelAdvisor shares might be able to climb higher in 2020 if it is able to impress Wall Street. ChannelAdvisor’s full-year fiscal 2019 sales are projected to dip slightly after they jumped 7% in 2018. Despite this expected slip, its adjusted earnings are projected to soar 223% from $0.13 per share to $0.42. Then 2020’s earnings are expected to climb another 26% higher on 5.2% sales expansion.
ECOM is a Zacks Rank #1 (Strong Buy) right now that boasts an “A” grade for Growth in our Style Scores system. Like BlackBerry, ChannelAdvisor’s industry is highly-ranked at the moment, coming in at No. 38 out of 254. And ECOM has destroyed our quarterly earnings estimates over the trailing four quarters.
The Rubicon Project, Inc. RUBI
Prior Close: $10.51 USD
The Rubicon Project is an ad exchange firm that helps execute “tens of billions” of transactions every month that has carved out space in an industry dominated by Google GOOGL. The firm enables advertisers to reach consumers across outlets like Spotify SPOT and eBay, and stands to benefit as more ad spending shifts online in the age of Netflix NFLX and Facebook FB.
Interested investors should note that RUBI and Telaria announced on December 19 a stock-for-stock merger that will see them form the “largest independent sell-side advertising platform, poised to capture growth in connected TV.” The deal is expected to close in the first half of 2020, with Rubicon shareholders set to own roughly 52.9% of the diluted shares of the combined company. The newly formed digital ad power’s joint sales climbed 32% through the 12-month period ended on September 30, 2019.
Rubicon Project holds a Zacks Rank #1 (Strong Buy) at the moment and its stock has soared 375% in the last two years. The stock is also up 33% in the past month and soared 8% Tuesday to climb just outside of our $10 and under threshold. Looking ahead, RUBI and its merger with Telaria seems like a bet on the expansion of connected TV and the continued rise of digital advertising—and let’s not forget that Google faces increased regulatory scrutiny.
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Click to get this free report Netflix, Inc. (NFLX) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report eBay Inc. (EBAY) : Free Stock Analysis Report Facebook, Inc. (FB) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report The Rubicon Project, Inc. (RUBI) : Free Stock Analysis Report ChannelAdvisor Corporation (ECOM) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report Spotify Technology SA (SPOT) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research