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 current calendar year.
Check out these five great stocks under $10 for 2018:
1. Audiocodes Ltd. (AUDC)
Prior Close: $7.13
AudioCodes designs, develops and markets enabling technologies and communication components for the transmission of voice, fax and modem over packet networks. AUDC is a solid growth pick, with earnings expected to improve by 22% and revenue projected to expand by 9% this year. Meanwhile, the stock has a P/E of just 15.8, which is a discount compared to the average of our “Communication – Components” group. Its P/S ratio of 1.2 also helps show that investors are getting a great price on this stock. AUDC is currently sporting a Zacks Rank #2 (Buy).
2. Farmland Partners Inc. (FPI)
Prior Close: $7.59
Farmland Partners is a real estate company which owns row crop farmland located in agricultural markets throughout North America. Farmland is slated to report its latest quarterly results tomorrow, and although earnings are expected to be flat year over year, the company is projected to witness revenue growth of nearly 64%. FPI will also be looking to extend its solid earnings streak, which now includes three consecutive estimate beats. The stock is holding a Zacks Rank #2 (Buy) ahead of its report. Income investors will also note that its status as a REIT means that it offers a juicy 6.7% dividend.
3. Invitae Corporation (NVTA)
Prior Close: $5.82
Invitae is engaged in genetic diagnostics for hereditary disorders which include breast, colon and pancreatic cancer. This popular biotech growth pick is sporting a Zacks Rank #1 (Strong Buy) right now. Investors are excited about the company’s rapid revenue growth, with current estimates calling for sales to improve by 83.4% in 2018. Invitae is not yet profitable, but analysts are expecting EPS improvement of nearly 16% this year. This is also going to be hot option for M&A and partnership chatter. Just this week, Invitae expanded its relationship with Sarepta Therapeutics to help clinicians identify patients with Duchenne muscular dystrophy.
4. Global Medical REIT Inc. (GMRE)
Prior Close: $8.43
Global Medical is a real estimate investment company engaged in the acquisition of purpose-built healthcare facilities and the leasing of these facilities to clinical operators. GMRE presents a dividend yield of about 9.5%, and the stock currently holds a Zacks Rank #2 (Buy). This is also an aggressive growth pick for 2018. According to our latest Zacks Consensus Estimates, analysts are expecting GMRE to witness EPS growth of 39% and revenue growth of 75% in the current fiscal year. However, the stock has a PEG ratio of just 1.3, so investors are getting a discount on this growth potential.
5. Glu Mobile Inc. (GLUU)
Prior Close: $5.25
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. Glu is bouncing into a profitable year, with earnings expected to improve by 150% to touch $0.22 per share in 2018. Meanwhile, revenue is projected to grow by 18%. The stock now has a Zacks Rank #2 (Buy). This is also a popular momentum option right now after shares skyrocketed about 43% in the past month. Investors looking to follow this trend should appreciate that analyst sentiment has improved strongly as well.
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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Invitae Corporation (NVTA) : Free Stock Analysis Report
AudioCodes Ltd. (AUDC) : Free Stock Analysis Report
Glu Mobile Inc. (GLUU) : Free Stock Analysis Report
Farmland Partners Inc. (FPI) : Free Stock Analysis Report
Global Medical REIT Inc. (GMRE) : Free Stock Analysis Report
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