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.
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 ranking. Take a look at the strong estimate revision activity and other factors that make these companies stick out right now.
1. Attunity Ltd. (ATTU)
Prior Close: $7.56
Attunity is a provider of software solutions that enable access, management, sharing, and distribution of data across enterprise platforms and the Cloud. After posting a surprise profit and surpassing the Zacks Consensus Estimate by eight cents last quarter, Attunity is looking to continue its earnings momentum. Although the Zacks Consensus Estimate still calls for a loss of eight cents per share this quarter, this would represent year-over-year growth of nearly 56%. Our consensus revenue estimate also calls for sales growth of 13%. These solid figures have helped the stock earn an “A” grade for Growth to go along with its Zacks Rank #2 (Buy).
2. PCTEL Inc. (PCTI)
Prior Close: $7.12
PCTEL designs, develops, and delivers wireless solutions, including precision antennas and RF devices that are marketed towards mobile providers and industrial manufacturers. After posting three earnings beats in a row, PCTEL is looking for another solid quarter that could spark an impressive year. Our current full-year Zacks Consensus Estimate calls for EPS growth of 150%, and that figure has seen one positive revision over the past 60 days. Overall, PCTEL is displaying consistent strength, which has helped the stock earn a VGM score of “B,” as well as a Zacks Rank #1 (Strong Buy).
3. Guidance Software (GUID)
Prior Close: $5.90
Guidance Software is an industry leader in digital investigative solutions. Its EnCase platform helps a variety of corporations and law enforcement organizations conduct efficient digital investigations. We’ve seen some impressive earnings estimate revision activity for the company, with three positive revisions for its full-year earnings coming in over the past 60 days. Our current consensus estimates now call for EPS growth of 111% on sales growth of 4%. After surpassing the Zacks Consensus Estimate by an average of 36% in each of the trailing four quarters, Guidance Software is hoping to continue its momentum with a profitable fiscal year.
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. All of the stocks highlighted here hold a Zacks Rank #2 (Buy) or better ranking, while also possessing other qualities that help them stick out. For smaller investors looking to find solid tech stocks at lower prices, this list is a great place to start.
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Attunity Ltd. (ATTU): Free Stock Analysis Report
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