All three major U.S. indexes jumped to new highs to start the first week of November. The positivity comes amid reported progress on the U.S.-China trade front, a third U.S. Federal Reserve interest rate cut, solid U.S. jobs data, and better-than-feared third-quarter earnings results. The S&P 500 is now up roughly 22% in 2019 and Wall Street seems pleased at the moment.
This means now appears to be a solid time to search for lower-priced stocks to add for your investment portfolio. Here at Zacks, we do 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.
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.
Today we highlighted, utilizing our Zacks Stock Screener, four stocks that are currently trading for under $10 per share that also sport a Zacks Rank #2 (Buy) or better that investors might want to consider buying right now…
Frontline Ltd. FRO
Prior Close: $9.90 USD
Frontline is a global crude oil and refined products shipping firm that has expanded its fleet of tankers in recent years. FRO shares have surged 80% in 2019 and 57% in the past two years. Despite the climb, Frontline stock closed regular trading Tuesday 17% below its 52-week highs, which could give the stock room to run. The next big opportunity to jump out of this $10 and under range might be its Q3 earnings release that is due out on November 29, according to the firm’s own financial calendar.
Our current Zacks Consensus Estimates call for the company’s Q3 revenues to jump over 26% to help the firm report break-even earnings, after it posted an adjusted loss of -$0.05 per share in the year-ago period. Frontline’s full-year sales are then expected to surge 28.5% to $468.3 million, with 2020 projected to come in 43% higher at $670.7 million. Meanwhile, FRO’s adjusted FY19 earnings are expected to climb from an adjusted loss of -$0.14 to +$1.03 per share, with FY20 projected to surge 67% higher to reach $1.71 per share.
Frontline is a Zacks Rank #1 (Strong Buy) stock at the moment. FRO is also part of our broader Transportation – Shipping industry that rests in the top 13% of our 254 Zacks industries, which means the stock could also benefit from a possible rising tide situation.
Zynga Inc. ZNGA
Prior Close: $6.30 USD
Zynga is a mobile video game giant with titles from FarmVille to Words with Friends and many more, including strategic licenses with the likes of Game of Thrones. Back in June, Zynga launched a team-based battle royale game on Snapchat’s SNAP relatively new Snap Games platform. In the company’s Q3 results, which it reported on October 30, mobile user pay revenue surged 78% to $266 million, with revenue up 48% to $345 million The company’s international sales also skyrocketed 67%.
Looking ahead, the company’s Q4 revenue is projected to surge 56% to $416.85 to help lift full-year sales by 60% to $1.55 billion. At the bottom end of the income statement, ZNGA’s adjusted fourth-quarter earnings are expected to climb from $0.02 per share in the year-ago period to $0.05 per share, with FY19’s EPS figure projected to soar 213% to $0.25 per share.
Zynga shares have jumped 70% in the last 12 months but have cooled off recently. ZNGA is currently a Zacks Rank #2 (Buy) that also rocks a “B” grade for Momentum in our Style Scores system.
Sandstorm Gold Ltd SAND
Prior Close: $6.76 USD
Despite the fact that the S&P 500 and the Dow just hit new highs, it is always a solid idea to have some exposure to gold. One way to do that, aside from buying gold, is to scoop up shares of a gold industry firm. Sandstorm is a gold royalty company that provides upfront financing to gold mining companies. The company then receives the right to a percentage of the gold produced for the lifetime of that mine.
Sandstorm just reported its third-quarter fiscal 2019 financial results at the end of October. Meanwhile, shares of SAND have soared 78% in the last 52 weeks but closed regular trading Tuesday down 6% off its highs. Sandstorm's adjusted Q4 earnings are projected to jump 300%, with FY19 expected to climb 167% from $0.03 per share to $0.08. On top of that, the company’s fourth quarter sales are projected to surge 32%, with full-year revenue expected to jump 33.6%. This impressive run is expected to continue in 2020, to the tune of another 16.3% sales growth and 83% earnings expansion.
Sandstorm Gold is a Zacks Rank #2 (Buy) that also holds a “B” grade for Growth and an “A” for Momentum. The company also rests in a gold mining industry that sits in the top 11% of all of our Zacks industries.
Cronos Group Inc. CRON
Prior Close: $8.23 USD
Cronos Group is one of the so-called big four pure-play marijuana stocks, along with Aurora Cannabis ACB, Tilray TLRY, and Canopy Growth CGC. The Canadian company boasts international production and distribution across five continents and is set to expand as legalization spreads. Marijuana has been completely legal in Canada for only a year, with “Cannabis 2.0,” which includes derivatives such as edibles and concentrates, just starting. Plus, weed is now recreationally legal in 11 states and D.C., with more to come.
Cronos stock has tumbled over the last six months and 40% in the last three months, alongside most of its cannabis-industry peers. For example, shares of CRON closed roughly 62% below its 52-week highs of over $20 per share. This means the next likely chance for Cronos to bounce back is November 12, when it is set to report its Q3 results. Its sales are projected to surge 281%, while its adjusted earnings are projected to come in flat.
Better yet, the company’s full-year 2019 sales are projected to skyrocket 237%, with 2020’s revenue expected jump 266% higher to hit $148.6 million. Plus, the company’s FY19 EPS figure is expected to climb from a loss of -$0.08 per share to +$0.08. Cronos is a Zacks Rank #2 (Buy) right now that can be thought of as a bet on marijuana stocks regaining momentum.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Frontline Ltd. (FRO) : Free Stock Analysis Report
Zynga Inc. (ZNGA) : Free Stock Analysis Report
Snap Inc. (SNAP) : Free Stock Analysis Report
Sandstorm Gold Ltd (SAND) : Free Stock Analysis Report
Aurora Cannabis Inc. (ACB) : Free Stock Analysis Report
Canopy Growth Corporation (CGC) : Free Stock Analysis Report
Cronos Group Inc. (CRON) : Free Stock Analysis Report
Tilray, Inc. (TLRY) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research