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. AudioEye, Inc. AEYE
Prior Close: $9.95 USD
AudioEye is a cloud-based digital accessibility company that works with firms to help make their new or existing websites and online platforms accessible and usable for people with disabilities. For instance, AudioEye can help make a website controllable through voice commands, so that people who might not be able to use a keyboard or mouse can have the complete experience of that web-page. The company has seen its stock price surge 67% over the last 12 months as it races out of the under $10 range.
The Tucson Arizona-based firm’s Q4 revenues jumped 103% to a record $1.78 million. Clearly, AudioEye is still an extremely small company, with a market cap of $74.63 million. Nonetheless, our current Zacks Consensus Estimate calls for AEYE’s current full-year revenue to soar 95% to reach $11.02 million. Meanwhile, AudioEye’s adjusted fiscal 2019 earnings are expected to surge roughly 49%. Peeking further down the road, the company’s 2020 EPS figure is projected to soar 97% above our current year estimate to come right near break-even earnings. AEYE is Zacks Rank #2 (Buy) at the moment that sports an “A” grade for Growth and a “B” for Momentum in our Style Scores system.
2. The Meet Group, Inc. MEET
Prior Close: $5.20 USD
The Meet Group is a social media/dating app company offering multiple apps, including MeetMe, Skout, and Lovoo. These apps are primarily focused on streaming video, mobile chat, gifting, and photo sharing. MEET is coming off a fiscal fourth quarter of 2018 that saw its revenue surge 31% to $52.5 million, with full-year sales up 44% to $178.6 million. Looking ahead, the company’s adjusted Q1 earnings are projected to soar 80% to reach $0.09 per share on roughly 27% revenue expansion.
Shares of MEET have skyrocketed 124% during the last 12 months. The company also boasts a strong history of quarterly earnings beats, which includes an average surprise of 48.6% over the trailing four periods. Furthermore, MEET’s valuation picture is impressive. The is profitable and is trading at just 14.9X forward 12-month Zacks Consensus EPS estimates, which marks a discount compared to its industry’s 27X average and the S&P’s 17.2X. The firm has also experienced some upward earnings estimate revision activity recently that helps it earn a Zacks Rank #2 (Buy).
3. Telenav, Inc. TNAV
Prior Close: $6.35 USD
Telenav creates 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 announced last quarter a partnership with Amazon AMZN to bring its widely popular Alexa voice assistant technology to Telenav’s navigation system offerings, which it showed off in January at CES 2019.
TNAV stock has soared 59% in 2019 to crush the S&P 500’s 15% climb and its industry’s 6% jump. Telenav is currently a Zacks Rank #2 (Buy) and rocks an “A” grade for Growth. On top of that, the Santa Clara, California-headquartered company’s price/sales ratio of 2.07 is respectable for a growing tech company and falls below some of its peers. Telenav is expected to see its fiscal Q4 2019 earnings surge 78.3% on the back of a 269% revenue growth. Meanwhile, the connected car tech firm’s full-year EPS is projected to climb nearly 76%, with its top-line expected to soar 101.7% to reach $214.17 million.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
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