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 ranking, 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. Groupon, Inc. (GRPN)
Prior Close: $5.71
In the midst of a transition to a marketplace-first focus, Groupon is looking to solidify a strong future for its business right now. Our current consensus estimates are calling for earnings growth to eclipse 200% by the end of fiscal 2017, and that expansion is expected to continue with EPS growth of 50% in the next fiscal year. The company is on the cusp of consistent profitability, and its revenue figures are already impressive. In fact, with a P/S ratio of 1.10, Groupon’s sales are clearly strong for a young tech company. GRPN is currently a Zacks Rank #1 (Strong Buy).
2. LSI Industries Inc. (LYTS)
Prior Close: $6.58
LSI Industries is an image solutions company that provides lighting fixtures and graphics display units for the retail, specialty niche, & commercial markets. The company is starting to see the fruits of a strong building industry, and After a strong earnings beat, that momentum should continue into 2018, where the company is already seeing rising earnings estimates. Furthermore, LSI offers a respectable 3% dividend and sports an overall VGM grade of “A” in our Style Scores system—both of which underscore its financial and fundamental stability. Right now, LYTS is a Zacks Rank #2 (Buy).
3. Glu Mobile Inc. (GLUU)
Prior Close: $4.09
Glu Mobile is a leading global publisher of mobile games, including top-rated original titles and titles based on major brands from partners like Activision and Hasbro. The company is expected to finish off its fiscal year with annual EPS growth of 86%, and in 2018, Glu is projected to surge into the green with EPS growth of an additional 218%. Shares are on pace to gain more than 115% in 2017, but that surge should continue next year as investors reward the company for its profitability. This stock is also a solid pick for investors looking to make a play on the growing mobile gaming industry. GLUU is sporting a Zacks Rank #2 (Buy) right now.
4. Tesco PLC (TSCDY)
Prior Close: $8.06
Tesco is the UK’s largest retailer and an international leader in the grocery and general merchandise retail markets. For a company its size, Tesco is witnessing impressive expansion, including projected earnings growth of 44% this fiscal year. The company is also expected to improve its profits at annualized rate of 11% over the next three to five years. Furthermore, the stock is sporting an “A” grade in our Value and Growth categories, which implies that its fundamental picture is sound and shares could be undervalued right now. Finally, TSCDY is currently holding a Zacks Rank #2 (Buy).
5. LimeLight Networks, Inc. (LLNW)
Prior Close: $4.76
LimeLight provides content delivery network solutions and partners with over 1,300 brands to deliver live and on-demand video around the world. Our current consensus estimates are calling for the company to finish the fiscal year with earnings growth of 633%, and that expansion is expected to continue in the next fiscal year, with current projections calling for additional EPS growth of 41%. LimeLight is also expected to witness respectable sales growth of 7% in its fiscal 2018. Furthermore, the company has surpassed earnings estimates in four consecutive quarters and will look to continue that momentum into next year. Currently, LLNW is a Zacks Rank #1 (Strong Buy).
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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Groupon, Inc. (GRPN) : Free Stock Analysis Report
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LSI Industries Inc. (LYTS) : Free Stock Analysis Report
Tesco PLC (TSCDY) : Free Stock Analysis Report
Glu Mobile Inc. (GLUU) : Free Stock Analysis Report
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