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. 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 also sport a Zacks Rank #2 (Buy) or better, and are showing signs of outpacing the market.
1. Frontline Ltd. FRO
Prior Close: $8.00 USD
Frontline is a shipping company that posted stronger-than-projected first-quarter earnings and revenue results in May. Shares of FRO have jumped 45% in 2019 to outpace the S&P 500’s 16% climb and its industry’s 18%. Frontline has also easily outpaced the market over the last several years. The company’s adjusted Q2 earnings are projected to soar 69% on 45% revenue growth. Meanwhile, Frontline’s full-year earnings are projected to skyrocket 400% from a loss of $0.14 per share to +$0.42, with revenue expected to climb 29% to $470.5 million. FRO’s positive earnings estimate revision activity helps it earn a Zacks Rank #2 (Buy) at the moment. The firm also sports “A” grades for both Growth and Momentum in our Style Scores system.
2. SLM Corporation SLM
Prior Close: $9.72 USD
SLM Corporation, better known as Sallie Mae, is a leading provider of private student loans. SLM shares surged to start 2019 but have fallen slightly over the last several months. The firm is currently a Zacks Rank #2 (Buy) that boasts an “A” grade for Value and a “B” for Growth. Looking ahead, SLM is projected to see its quarterly revenue jump nearly 18%, to help lift earnings 20%. The lender’s adjusted fiscal year EPS figure is expected to climb 18% on 15% higher revenue. Double-digit top and bottom-line growth is then projected to continue next year. Sallie Mae is also a dividend payer, with a 1.2% yield at the moment.
3. Enerplus Corporation ERF
Prior Close: $7.53 USD
Enerplus is an independent North American oil and gas exploration and production company that is a Zacks Rank #2 (Buy) at the moment. The company’s solid forward P/E and price to sales helps ERF earn an “A” grade for Value. The firm is also a dividend payer that is projected to see its quarterly earnings soar from $0.04 per share in the year-ago period to $0.27 per share. Meanwhile, quarterly revenue is expected to climb roughly 41% to $258 million. On top of that, Enerplus has easily beat our earnings estimates the past two quarters.
4. Glu Mobile Inc. GLUU
Prior Close: $7.18 USD
GLUU is a mobile video game firm, with a portfolio that includes MLB Tap Sports Baseball, Deer Hunter, and Kim Kardashian: Hollywood. More recently, Glu Mobile launched WWE Universe, as part of a multi-year agreement with WWE WWE, and is set to debut Disney Sorcerer’s Arena DIS in August. Glu’s full-year earnings are projected to skyrocket from $0.10 per share to $0.35. Meanwhile, the company’s fiscal 2019 revenue is expected to climb nearly 18% to $425.9 million, with 2020’s revenue excepted to jump 39% above our current-year estimate. Glu Mobile’s positive longer-term earnings estimate revision activity helps it earn a Zacks Rank #2 (Buy). And GLUU’s price/sales ratio of 2.7 comes in below its industry’s 3.4 average and gaming giant Take-Two Interactive’s TTWO 4.8.
5. Vipshop Holdings Limited VIPS
Prior Close: $8.63 USD
Shares of the Guangzhou, China-based online discount retailer, which sells popular branded products throughout China, are up 61% in 2019 and 16% in the last month. Vipshop’s price/sales ratio of 0.45 represents an impressive discount compared to its industry’s 0.89 average. And VIPS’ 11.4 forward P/E, which comes in well below its industry’s 23.1X, helps it earn a “B” grade for Value. The Chinese e-commerce retailer’s full-year 2019 EPS figure is projected to climb over 31% to reach $0.76 per share on the back of 3% revenue expansion. Peeking further ahead, VIPS’ adjusted 2020 earnings are projected to climb 31.5% above our current year estimate. Vipshop is a Zacks Rank #2 (Buy) at the moment.
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Frontline Ltd. (FRO) : Free Stock Analysis Report
The Walt Disney Company (DIS) : Free Stock Analysis Report
Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report
SLM Corporation (SLM) : Free Stock Analysis Report
World Wrestling Entertainment, Inc. (WWE) : Free Stock Analysis Report
Enerplus Corporation (ERF) : Free Stock Analysis Report
Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report
Glu Mobile Inc. (GLUU) : Free Stock Analysis Report
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