At Zacks, we try to avoid labeling stocks as “cheap” or “expensive.” Instead, we opt to look beyond a stock’s face value, and our system puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.
With that said, low-priced stocks can still be attractive to investors as they present the chance to take a larger position in a company, which they might not be able to in higher-priced stocks.
When searching for these low-priced stocks, we still look for similar trends in growth, value, and momentum. Then we apply the Zacks Rank to properly analyze the potential that these companies have. We are also aware of the latest sector trends and make sure to cover all of the hottest industries.
Today we’ve highlighted three stocks that fall into the broad “technology” sector. Each of these three stocks is currently trading for less than $10 a share and holds a Zacks Rank #1 (Strong Buy) or #2 (Buy) at the moment.
1. Digital Turbine, Inc. APPS
Prior Close: $3.11 USD
Digital Turbine is coming off a fiscal third quarter that saw it top earnings and revenue estimates. The company operates in our Internet – Software industry and its business tries to connect OEMs, mobile operators, and publishers with advertisers and app developers. APPS’ positive earnings revision activity helps it earn a #1 (Strong Buy) rank.
The Austin, Texas-based company is expected to swing from an adjusted loss of $0.01 per share in the year-ago period to earnings of $0.02 a share in the current quarter, for a 300% expansion. This impressive bottom-line growth is projected to continue in the following quarter and the coming fiscal year. Meanwhile, Digital Turbine’s bottom-line expansion is expected to be supported by 26.7% revenue growth in Q4.
2. Telenav, Inc. TNAV
Prior Close: $6.09 USD
Telenav provides connected car and location-based services and saw 1.3 million vehicles equipped with its technology enter the global market last quarter. The company works with companies such as General Motors GM and Toyota TM. Investors might also be happy to note that Telenav just recently announced a partnership with Amazon AMZN to bring its widely popular Alexa voice assistant technology to Telenav’s navigation system offerings.
TNAV stock has soared 50% in 2019 and the company’s positive, longer-term earnings estimate revision activity helps it earn a Zacks Rank #2 (Buy). Telenav is expected to see its current-quarter earnings surge over 78% on the back of a 269% revenue growth. Meanwhile, the connected car tech firm’s full-year EPS climb is projected to climb nearly 76%, with its top-line expected to soar 101.7% to reach $214.17 million. The company also rocks an “A” grade for Growth and has a P/S ratio of 1.98, which falls below some of its peers.
3. Glu Mobile Inc. GLUU
Prior Close: $9.28 USD
Glu Mobile is a global developer and publisher of free-to-play mobile video games, such as MLB Tap Baseball 2018, Deer Hunter, Kim Kardashian Hollywood, and more. The firm saw its 2018 revenue surge 28% to reach $366.6 million as mobile gaming becomes more popular. GLUU stock has climbed 17% to start the year and it has some new games entering beta, including a Disney/Pixar DIS title, that could help the company expand this year.
Glu Mobile’s adjusted current-quarter EPS share figure is projected to climb 67%, based on our current Zacks Consensus Estimate. Meanwhile, the company’s full-year 2019 earnings are projected to skyrocket 230% on the back of 16% revenue growth. The company’s positive earnings estimate revision activity helps it earn a Zacks Rank #2 (Buy) at the moment. GLUU also sports an “A” grade for Growth in our Style Scores system. Plus, investors should remember that mobile gaming is on the rise as part of the broader video game market expansion.
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The Walt Disney Company (DIS) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Digital Turbine, Inc. (APPS) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
Glu Mobile Inc. (GLUU) : Free Stock Analysis Report
Telenav, Inc. (TNAV) : Free Stock Analysis Report
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