Here at Zacks, we don’t generally classify stocks as “cheap” or “expensive”, and rather than looking at the stock’s face value, we have a system that puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.
That being said, low-priced stocks can be attractive to smaller investors that can’t necessarily afford large stakes in companies with higher priced stocks.
When looking at these low-priced stocks, we can look at the same trends in growth, value, and momentum and apply the Zacks Rank to properly analyze the potential that these companies have. We are also keenly 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 per share and holds a Zacks Rank #2 (Buy) or better. Take a look at the strong estimate revision activity and other factors that make these tech companies stick out right now:
1. VOXX International Corporation (VOXX)
Prior Close: $5.60
Voxx International is a designer of automobile sound, vehicle security, mobile video systems, and consumer electronics products. The stock is currently sporting a Zacks Rank #2 (Buy), as well as an “A” grade for Value in our Style Scores system. Shares are trading at just 13x earnings right now, and the company appears to be improving its financial position.
Cash flow growth is reaching nearly 27%, and total cash flow of $1.09 per share outpaces the industry average. Meanwhile, the Zacks Consensus Estimate for the company’s upcoming fiscal year earnings has been trending higher and now calls for total EPS growth to reach a staggering 226%.
2. Westell Technologies, Inc. WSTL
Prior Close: $3.28
Westell Technologies designs a broad range of digital and analog products used by telcos to deliver services, primarily over telephone wires. WSTL is a Zacks Rank #2 (Buy) and has responded well to recent volatility, with shares gaining more than 11% over the past four weeks. The stock also has an “A” grade for Growth and a “B” grade for Momentum.
WSTL is a stock for investors looking for explosive earnings expansion. For its current full year ending in March, Westell is projected to report earnings growth of 225%. The company is also expected to start its next fiscal year off hot with further EPS growth of 100% in the first quarter.
3. Xplore Technologies Corp. (XPLR)
Prior Close: $3.05
Xplore Technologies is engaged in the business of developing integrating and marketing mobile wireless tablet PC computing systems. XPLR is currently holding a Zacks Rank #2 (Buy). The stock also sports an “A” grade for Momentum, and shares have moved more than 12% higher within the past month.
Meanwhile, XPLR has a beta rating of just 0.77, so it should hypothetically be less volatile than the market average—a feature that not many low-priced stocks can flaunt. Earnings estimates have been moving higher lately, and this improved analyst sentiment could bring even more positive trading over the coming weeks.
A stock’s market price is not a clear indicator of whether it is a good investment. However, the nice thing about the Zacks Rank is that it can be applied to stocks of any price. For smaller investors looking to find solid tech stocks at lower prices, this list is a great place to start.
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Zacks’ has just named 4 companies that enable investors to take advantage of the explosive growth of cryptocurrencies via the stock market.
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Westell Technologies, Inc. (WSTL) : Free Stock Analysis Report
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