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.
Moreover, recent volatility in the stock market has lowered valuations and taken several notable stocks under mental per-share thresholds as investors start to look toward the New Year. 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 throughout the remainder of the calendar year—and more importantly, into 2019.
Check out these five great stocks under $10 for 2019:
1. Snap Inc. (SNAP)
Prior Close: $6.82
Snap is the parent company of Snapchat, a popular picture and video messaging mobile application. It is no secret that Snap has struggled since its IPO in the face of stiff competition from bigger social media companies, but the firm is finally starting to win analyst favor. Estimates for its fiscal 2019 have improved, and while Snap is still likely to be in the red, our EPS consensus is calling for a bottom-line improvement of 37%.
That would come on the back of 34% revenue growth, which is expected on top of the 41% sales growth this year is estimated to see. Strong earnings and revenue growth should help this stock find a bottom and surge into the New Year. Shares of this #2 (Buy)-ranked company have already ticked higher since its latest earnings report.
2. Good Times Restaurants (GTIM)
Prior Close: $4.35
Good Times is a chain of fast-food restaurants known for their premium burgers and frozen custard. The company also owns the fast-casual Bad Daddy’s Burger Bar chain. It is primarily a regional play, with most locations operating in Colorado. GTIM is currently holding a Zacks Rank #1 (Strong Buy) and sports an “A” grade for Growth in our Style Scores system. Current estimates have EPS results improving 39% this year and 86% in the upcoming fiscal year. GTIM is also a low-priced momentum play after soaring more than 31% in six months.
3. Ericcson (ERIC)
Prior Close: $8.90
Ericsson is a world-leading supplier in the telecommunications and data communications industries, offering advanced solutions for mobile and fixed networks, as well as consumer products. ERIC is sporting a #1 (Strong Buy) with just two months left in the year, and its “A” grade in our Growth category adds to that promise going forward.
Earnings growth is expected to reach nearly 160% in 2018, and early estimates have that figure improving another 47% in the next fiscal year. The stock also seems to be reasonably valued, as evidenced by its P/S ratio of 1.2. This stock warrants a look while it is still cheap.
4. Trivago N.V. ADS (TRVG)
Prior Close: $7.44
Trivago is a travel booking website. Based in Germany, it offers deal-oriented service related to booking hotels and lodging to a wide global user base. TRVG was battered in the second half of last year, but that selling found a stopping point this summer, and the stock has since rallied more than 80% from its lows. This #2 (Buy) firm now has momentum and growth characteristics going into 2019, where earnings are expected to inch into the green and improve roughly 113% from the current year’s projected totals. On a long-term basis, analysts see Trivago notching an annualized growth rate of 7.5%.
5. Spark Energy, Inc. (SPKE)
Prior Close: $7.84
Spark Energy is an independent energy services company, offering customers alternative options for their in-home natural gas and electricity services. SPKE is sporting a #2 (Buy), as well as “A” grades in our Value and Growth categories. Recent volatility showed that a utility might be a worthwhile holding heading into 2019—especially one at a decent valuation with growth prospects. Moreover, Spark presents a dividend yield of more than 9.2% right now, so investors can rest easy knowing their portfolio is generating cash.
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