Why should investing be a rich man’s game? If you’re looking to invest, but haven’t got the budget to go all-in on Amazon (AMZN) or Alphabet (GOOGL), there are plenty of stocks available featuring low prices and high expectations. Now that markets are surging back to their record levels, with the S&P 500 at 2,950, let’s use TipRanks’ data to take a close look at four bargain investments, stocks priced at $10 and under yet sporting ‘Buy’ ratings.
Asure Software, Inc. (ASUR)
This small software company, focusing on HCM (human capital management) and workspace management systems, is coming off an excellent first quarter. The company reported revenues for Q1 2019 at $26.8 million, for a 39% year-over-year gain, and a 44% year-over-year gain in customer bookings. Company CEO Pat Goepel described the quarter as having “solid momentum,” said that Asure is “focused on accelerating the velocity of our cross-selling opportunities and scaling our business.” Major new clients include Kids Care Home Health of Idaho, and the City of Paterson, New Jersey. Full-year revenue guidance remains in the range of $104 to $107 million.
Wall Street’s analysts are impressed, by both the company’s prospects and its recent history. ASUR shares are up more than 50% year-to-date, and the company’s revenue guidance represents an 18% increase over FY18. Writing from Northland Securities, Robert Breza said last month: “We are assuming coverage of Asure Software Inc. with an unchanged $12 PT and Outperform rating following solid Q1 results which topped estimates on the top and bottom line.” Breza’s $12 price target indicates a 52% upside to the stock.
Just last week, Barrington’s Vincent Colicchio set a ‘Buy’ on ASUR based on future outlook for the stock. Colicchio noted, “We expect Asure to achieve rapid organic and acquisition‐related growth over the next several years in the HCM and WM software markets. Asure has many opportunities to increase revenue at existing clients due to its growing product portfolio…” His price target, $15, suggests an upside of 90% for ASUR.
Overall, ASUR gets a ‘Moderate Buy’ from the analyst consensus, based on 2 buy ratings in the past three months. There are no holds or sells on this stock. The average price target is $13.50, indicative of a 71% upside from the current share price of $7.86.
Concrete Pumping Holdings, Inc. (BBCP)
Based in Denver, Colorado, Concrete Pumping Holdings operates in both the US and the UK, offering – you guessed it! – concrete pumping services in the construction industry. In addition to pumping, the company also offers concrete waste management services, an important subsidiary service for customers in the concrete industry. Concrete Pumping offers its customers an equipment rental option, allowing the customer to save money on overhead while Concrete Pumping benefits from faster payment schedules on its products.
BBCP went public two years ago, and this past May put an additional 15 million common stock shares on the market. The new shares were offered to raise funds to finance the acquisition of Capital Pumping, with any extra funds being used to augment corporate working capital. The stock offering and acquisition were both completed last month.
Analyst Andrew Wittman, of Baird, gave BBCP a ‘Buy’ rating during last month’s stock offering, specifically noting the company’s “…track record of gaining share versus alternatives, the company's unique scale advantages and its rental model, which offers low risk and fast cash conversion.” He added that, at current price level, he would buy this stock. His $7 price target suggests a strong upside of 58%.
Also weighing in was Stifel’s Stanley Elliott. He set a $9 price target with his ‘Buy’ rating, saying that, “The company has meaningful opportunity to expand through mild secular growth in concrete pumping, footprint expansion and cross-selling of waste services, and numerous acquisition roll-up opportunities.” His price target gives BBCP an impressive 103% upside.
With 4 buy ratings assigned it in the last three months, BBCP holds a ‘Strong Buy’ from the analyst consensus. The stock sells for $4.42, so the average price target of $8.33 gives it an 88% upside potential.
Fitbit, Inc. (FIT)
Fitbit stands at the junction of two great trends – our desire to be healthy, and our desire to have the latest gadgets. Fitbit’s gadget is the application of wearable tech to activity tracking, allowing you to count your steps, monitor your heartrate, or even check the quality of your sleep – and to follow your data over time. In short, it’s intended to make easier to track the quality and efficacy of your exercise and diet.
With increased hedge fund activity – the major funds increased their holdings in FIT by 3.73 million shares last quarter – it would seem that Fitbit’s low share price is attracting investment. The company’s reputation helps, too – industry bloggers have a bullish outlook on FIT, while news sentiment is overwhelmingly positive.
This is all reflected in the analyst reviews, which have been consistently positive on FIT for several months. Writing at the beginning of May, Andrew Uerkwitz of Oppenheimer, said, “We believe FIT has taken its first steps in generating regular recurring revenue from the healthcare and wellness industry. We like what we heard regarding Fitbit Health Solutions and see it as a first step towards a more meaningful business transformation. We expect it to take time, but as Health Solutions and other services start to ramp, we expect to see more predictability in results.” Uerkwitz’s $8 price target suggests an upside of 78% to FIT.
Also writing in May, DA Davidson analyst Tom Forte noted benefits coming from the company's “…latest partnering announcement with the UnitedHealthcare's (UNH) Motion effort through its Charge 3 tracker device participation.” Forte set a $7 price target, pointing to a 56% upside.
FIT’s analyst consensus rating is a ‘Moderate Buy,’ based on 2 buys, 1 hold, and 1 sell given during the last three months. FIT shares sell for just $4.48, but the average price target of $6.25 suggests an upside potential of 39%.
Ford Motor Company (F)
Our last stock hails from Detroit, the Motor City, where more than a century ago Henry Ford created the modern assembly line, revolutionized the automotive industry, and made his car company one of the industry’s storied names.
The auto industry is entering a transitional period. Changes in customer taste and the political regulatory climate are pushing the development and improvement of electric vehicle technology, while advances in AI are slowly turning self-driving cars – once the domain of science fiction – into a reality. Ford Motor is implementing a $4 billion initiative to develop an autonomous car division, with $1 billion going toward developing the requisite software and automation tech in partnership with Argo AI, and a further $900 million slated to expand manufacturing facilities in Michigan. At the same time, Ford is developing and marketing a line of electric hybrid and plug-in vehicles based on existing frames.
All of this is supported by a successful line of SUVs and light trucks. Ford’s F-series pickups are perennial leaders in their niche, and provide the company with a solid foundation of sales and revenue.
With such a strong background, it’s no wonder that Merrill Lynch’s John Murphy upgraded his stance on Ford stock last month, bumping it from ‘neutral’ to ‘buy.’ His price target, $14, suggests a 40% upside to the stock.
More recently, on June 13, Goldman Sachs analyst David Tamberrino sees the company’s overall plan helping it to regain revenue and market share in Europe. He says, “…working through the potential margin enhancement opportunity, we think the company can generate over 4% operating margins through-the-cycle in Europe post restructuring actions…” Tamberrino’s price target of $13 would indicate a 30% upside to Ford shares.
Ford holds a ‘Moderate Buy’ rating from the analyst consensus, based on an even split of 5 buys and 5 holds, with 1 sell. Shares are currently priced at $9.99, so the average target of $11.35 indicates room for a 13% upside.
Start your own stock research with Stock Screener, the all-in-one tool that puts the entire TipRanks database at your fingertips.