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5 of the Best Stocks Under $10 for 2017

Ryan McQueeney
Today we've highlighted five stocks that are currently trading for under $10 per share. These stocks are also showing signs for solid growth throughout the remainder of 2017, and all of them currently hold a Zacks Rank #1 (Strong Buy).

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 five stocks that are currently trading for under $10 per share. These stocks are also showing signs for solid growth throughout the remainder of 2017, and all of them currently hold a Zacks Rank #1 (Strong Buy).

1.       Lifeway Foods (LWAY)

Prior Close: $9.33

Lifeway Foods is a producer and distributer of “Kefir,” a yogurt-like fermented milk drink in the U.S. It’s been a tough year for LWAY shares, but investors now have a unique opportunity to catch the stock as it bounces off the bottom. Shares have moved about 10% higher over the past four weeks, and the company will look to continue this momentum with another positive earnings surprise. Also, with a P/S ratio of 1.21 and revenue expected to grow by 6.5% this quarter, the stock is trading at a solid price based on sales. Finally, the company’s current cash flow growth of nearly 28% proves that it is actively improving its financial position.

 

2.       MAM Software Group (MAMS)

Prior Close: $7.44

MAM Software provides business management software solutions to the automotive aftermarket, supply, and distribution industries. After smashing the Zacks Consensus Estimate for earnings by over 100% in each of the last two quarters, the stock is starting to move higher. In fact, MAMS has earned an “A” grade for Momentum and has gained nearly 14% over the past 12 weeks. On top of this, the company’s cash flow growth of 21.5%, net margin of 14.5%, and RoE of 51% all work to show that it is uniquely positioned to strengthen its financial position and deliver value to shareholders—especially for a company of its size in the software space.

 

3.       Crocs, Inc. (CROX)

Prior Close: $9.70

Crocs is a shoe manufacturer, best known for the production and distribution of the iconic foam-based, clog-like sandal design. The company has actually emerged as an interesting growth pick, as it is expected to improve its EPS figures by a whopping 92.5% this fiscal year. The stock has also been gaining steam throughout 2017, and shares are now up more than 40% year-to-date after two consecutive earnings beats. It’s also worth noting that this has been a steady gain, and CROX’s beta rating of 0.53 suggests that it is hypothetically less volatile than the market average—which is a bit rarer for a stock at this price.

 

4.       PFSweb, Inc. (PFSW)

Prior Close: $8.72

PFSweb is a provider of transaction management services for both traditional commerce and e-commerce companies. The company has posted two strong earnings beats in a row, and shares have gained an impressive 11.5% in the past month alone. PFSweb is also an exciting growth opportunity, as our current consensus estimates are calling for the company to post full-year EPS growth of over 180%. This growth is expected to continue in the near future, with next year’s projected EPS growth already touching 66%. Also, with a P/S ratio of 0.49, we might say that this stock is trading at a discount based on its revenues.

 

5.       JA Solar Holdings (JASO)

Prior Close: $7.53

JA Solar is a China-based manufacturer of solar cells that are sold to solar module manufacturers. The stock currently has an “A” grade for Value, which is supported by its P/E ratio of 12.43 and its P/S ratio of just 0.14. The company is also raking in about $4.78 in cash per share on the back of 4% cash flow growth. JA Solar also has a net margin of 2.9%, which bests the Solar industry average of -15.4%. Furthermore, its RoE of 7.9% also smashes the industry average of -3.8%.  

 

Bottom Line

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.

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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PFSweb, Inc. (PFSW) : Free Stock Analysis Report
 
MAM Software Group, Inc. (MAMS) : Free Stock Analysis Report
 
Lifeway Foods, Inc. (LWAY) : Free Stock Analysis Report
 
Crocs, Inc. (CROX) : Free Stock Analysis Report
 
JA Solar Holdings, Co., Ltd. (JASO) : Free Stock Analysis Report
 
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