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.
Today we’ve highlighted five stocks that are currently trading for under $10 per share. All of these stocks currently sport a Zacks Rank #2 (Buy) or better, and the selected companies are showing signs of outpacing the market throughout 2019.
Check out these five great stocks under $10 for 2019:
1. Glu Mobile Inc. GLUU
Prior Close: $9.04
Glu Mobile is a global developer and publisher of free-to-play mobile video games, such as MLB Tap Baseball 2018, Deer Hunter, Kim Kardashian Hollywood, and more. The firm saw its 2018 revenue surge 28% to reach $366.6 million. GLUU stock has climbed 12% to start the year and it has some new games entering beta, including a Disney/Pixar DIS title, that could help the company expand this year.
Glu Mobile’s adjusted current-quarter EPS share figure is projected to climb 67%, based on our current Zacks Consensus Estimate. Meanwhile, the company’s full-year 2019 earnings are projected to skyrocket 230% on the back of 16% revenue growth. The company’s positive earnings estimate revision activity helps it earn a Zacks rank Zacks Rank #2 (Buy). Plus, investors should remember that mobile gaming is on the rise as part of the broader video game market expansion.
2. Digital Turbine, Inc. APPS
Prior Close: $3.05 USD
Digital Turbine is coming off a fiscal third quarter that saw it top earnings and revenue estimates. The company operates in our Internet – Software industry and its business tries to connect OEMs, mobile operators, and publishers with advertisers and app developers. APPS’ positive earnings revision activity helps it earn a #1 (Strong Buy) rank.
The Austin, Texas-based company is expected to swing from an adjusted loss of $0.01 per share in the year-ago period to earnings of $0.02 a share in the current quarter, for a 300% expansion. This impressive bottom-line growth is projected to continue in the following quarter and the coming fiscal year. Meanwhile, Digital Turbine’s bottom-line expansion is expected to be supported by 26.7% revenue growth in Q4.
3. Trivago TRVG
Prior Close: $5.41 USD
Trivago is a German-based hotel and accommodation search platform that closed 2018 with the ability to connect customers in over 190 countries to more than three million hotels and alternative accommodations, such as private apartments. Shares of TRVG have tumbled 37% over the last year from almost $9 a share to below $6. With that said, the company operates in a high-margin business and Trivago saw its profits jump in the fourth quarter, while the company’s consolidated revenue per qualified referral jumped 13%.
Peeking ahead, our Zacks Consensus Estimate calls for the company’s adjusted Q1 fiscal 2019 earnings to soar 129%. This bottom-line growth is expected to continue for the full year with 2019’s earnings projected to skyrocket over 214%. On top of that, Trivago’s 2020 revenue is projected to climb 7.8% above our current year estimate that calls for a 2.4% decline. Trivago is currently a Zacks Rank #2 (Buy) based, in part, on its positive earnings estimate revision activity.
4. Radiant Logistics Inc. RLGT
Prior Close: $6.13 USD
Radiant Logistics is a global transportation and supply chain management firm that operates everything from retail sector white-glove delivery services to heavy machinery transportation. Shares of RLGT have soared over 44% so far this year and the company is part of the Transportation – Air Freight and Cargo industry that currently rests in the top 7% of our 256 Zacks industries.
Radiant is a Zacks Rank #1 (Strong Buy) right now that boasts “A” grades for Value, Growth, and Momentum in our Style Scores system. Plus, the company is trading at a respectable P/E of 12.5, which comes in just above its industry’s 11.7X average. The company is also expected to see its adjusted current-year earnings soar over 62% on the back of 13.6% revenue growth.
5. Telenav, Inc. TNAV
Prior Close: $5.98 USD
Telenav provides 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 just recently announced a partnership with Amazon AMZN to bring its widely popular Alexa voice assistant technology to Telenav’s navigation system offerings.
TNAV stock has soared 47% in 2019 and the company’s positive earnings estimate revision activity helps it sport a Zacks Rank #2 (Buy). Telenav is expected to see its current-quarter earnings surge over 78% on the back of a 269% jump in revenue. Meanwhile, the connected car tech firm’s full-year EPS is projected to surge roughly 76%, with its top-line expected to soar 101% to reach $214.17 million. The company also rocks an “A” grade for Growth and has a P/S ratio of 1.87, which falls below some of its peers.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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
The Walt Disney Company (DIS) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Trivago N.V. ADS (TRVG) : Free Stock Analysis Report
Digital Turbine, Inc. (APPS) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
Glu Mobile Inc. (GLUU) : Free Stock Analysis Report
Radiant Logistics, Inc. (RLGT) : Free Stock Analysis Report
Telenav, Inc. (TNAV) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research