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 2017, and all of them currently hold a Zacks Rank #1 (Strong Buy).
1. Amerigo Resources (ARREF)
Prior Close: $0.49
Amerigo Resources is engaged in producing and selling copper and molybdenum concentrates, primarily in Chile. Over the past 60 days, the Zacks Consensus Estimate for Amerigo’s full-year earnings has gained eight cents. Current estimates now call for full-year EPS of $0.09, which would represent growth of 325% from last year’s loss of four cents per share. The company is also expected to see solid sales growth over the year; our consensus estimate would represent revenue growth of more than 45%.
2. ZAGG Inc. (ZAGG)
Prior Close: $7.20
ZAGG Inc. is a designer and manufacturer of protective coverings and accessories for consumer electronics. The company is best known for its “invisibleSHIELD” line of screen protectors. Although earnings for the current quarter will face tough year-over-year comparisons, 2017 is shaping up to be a year of impressive EPS and sales growth for ZAGG Inc. Our current consensus estimates call for full-year earnings growth of 183% on sales growth of 17%. As for right now, the company’s solid Zacks Rank is underscored by its positive earnings estimate revision activity.
3. Radiant Logistics (RLGT)
Prior Close: $5.00
Radiant Logistics is a non-asset based, third-party logistics and supply chain management company with operations throughout North America. 2017 is poised to be year of aggressive earnings growth for the company, with our consensus estimate for Radiant’s full-year EPS representing year-over-year growth of over 300%. Shares of the company have gained for than 25% in the past 12 weeks, and as the stock approaches its 52-week high, it could be set to break into a new range if its earnings performance exceeds expectations.
4. Papa Murphy’s Holdings (FRSH)
Prior Close: $4.77
Papa Murphy’s Holdings operates as a franchisor and operator of the “Take 'N' Bake” pizza chain in the United States. In just the past 30 days, we have seen three positive estimate revisions for the company’s full-year earnings, bringing its Zacks Consensus Estimate for the time period seven cents higher. Our current consensus estimates now call for EPS growth of 31% on sales growth of 2% this year.
5. Perceptron, Inc. (PRCP)
Prior Close: $8.34
Perceptron, Inc. designs, manufactures and markets information based process measurement and guidance solutions which help customers improve performance. The company is set for a big fiscal 2017, with and after posting a loss of 62 cents per share last year, Perceptron’s full-year Zacks Consensus Estimate of 6 cents per share would be a significant improvement. Our current consensus estimates also call for sales growth of nearly 9% this 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. If you would like to check out more of these low-priced stocks, look no further than our Stocks Under $10 portfolio service!
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ZAGG Inc (ZAGG): Free Stock Analysis Report
Perceptron, Inc. (PRCP): Free Stock Analysis Report
Amerigo Resources Ltd. (ARREF): Free Stock Analysis Report
Papa Murphy's Holdings, Inc. (FRSH): Free Stock Analysis Report
Radiant Logistics, Inc. (RLGT): Free Stock Analysis Report
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