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 shares. 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 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 in the upcoming calendar year.
Check out these five great stocks under $10 for 2018:
1. Sunrun Inc. (RUN)
Prior Close: $7.06
Sunrun is a leading developer of residential solar energy systems, operating through both its direct-to-consumer and partner-focused channels. The company and its competitors were dragged down by concerns that a Trump Administration tariff would hurt installers, but the recently-implemented tax was actually not as damaging as many expected. Earnings estimates have been trending significantly higher recently, and revenue estimates are calling for 27% growth in 2018. Still, the stock is trading at just over 5x earnings and 1.5x sales.
2. Smart Sand, Inc. (SND)
Prior Close: $7.74
Smart Sand is a producer of northern white raw frac sand for the oil and gas industry. It offers proppant and related logistics services for oil and gas recovery from unconventional wells. Earnings estimates for the current and upcoming fiscal years have been moving higher over the last 60 days, and now EPS growth is expected to be well over 100% in 2018. Revenues are also projected to soar more than 75% this year. Nevertheless, the stock is sporting an “A” grade for Value in our Style Scores system, and its P/E of 7.1 and P/S of 2.5 highlight a decent buying opportunity for value investors.
3. Xplore Technologies Corp. (XPLR)
Prior Close: $3.06
Xplore Technologies is engaged in the business of developing integrating and marketing mobile wireless tablet PC computing systems. XPLR has gained more than 16% over the past 12 weeks and nearly 11% within the last month, meaning that the stock has been an interesting momentum pick during these volatile weeks. Xplore is holding a Zacks Rank #2 (Buy), as well as “B” grade in our Momentum category. 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.
4. J.Jill, Inc. (JILL)
Prior Close: $8.68
J. Jill is a specialty retailer of women’s apparel, operating a number of stores and an e-commerce business that sell clothing and accessories. JILL is sporting a Zacks Rank #1 (Strong Buy) and an “A” grade for Value in our Style Scores system. Our current Zacks Consensus Estimate is calling for the company to witness EPS growth of 9% this year, but the stock is still trading at just 10x forward earnings. J. Jill has also managed to surpass earnings estimates in the three quarters since its IPO, shrugging off some concerns about its choice to go public in turbulent retail times.
5. Westell Technologies, Inc. (WSTL)
Prior Close: $3.33
Westell Technologies designs a broad range of digital and analog products used by telcos to deliver services, primarily over telephone wires. The company sports an “A” grade in our Growth category. 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. That strong earnings momentum should be enough to inspire positive trading throughout the rest of the year.
A stock’s market price is certainly not the most important factor to consider when considering whether or not to add it to your portfolio, and sales and earnings growth projections can prove to be tough to live up to.
Nevertheless, we can always use Zacks’ proven methods of finding quality stocks, and these five companies just happen to be showing strength while also trading for under $10 per share.
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Westell Technologies, Inc. (WSTL) : Free Stock Analysis Report
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