For Immediate Release
Chicago, IL – April 10, 2019 – Zacks Equity Research Logitech International LOGI as the Bull of the Day, Bassett Furniture BSET asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on AudioEye, Inc. AEYE, The Meet Group, Inc. MEET and Telenav, Inc. TNAV.
Here is a synopsis of all five stocks:
Bull of the Day:
Logitech International is a Zacks Rank #1 (Strong Buy) and carries a grwoth style score of B along with a value style score of C. I like this stock here as the China trade deal is probably coming in the next month or so and that could be a big tailwind for this company. Today, LOGI is the Bull of the Day.
Logitech designs, manufactures and markets innovative peripherals that provide people with easy access to the digital world. The Company's product family includes Internet video cameras, mice and trackballs, keyboards, audio and telephony products, interactive gaming devices and 3D controllers.
I see a solid earnings history for LOGI. The company has topped the Zacks Consensus Estimate in each of the last four quarters. The most recent quarter saw a beat of 12 cents for an 18% positive earnings surprise.
In fact, the average positive earnings surprise over the last four quarters is right at 18.3%.
Estimates Tick HIgher
The key to the Zacks Rank is the move in earnings estimates. With a Zacks Rank #1 (Strong Buy) we know that estimates are moving higher. That is the case for LOGI, with the fiscal 2019 number moving from $1.86 90 days ago to $1.95.
The 2020 fiscal number has also bumped higher, moving from $2.07 to $2.12 over the same time horizon.
I see a good valuation here too, with a 19x forward PE multiple. Revenue growth on an annual basis is only 6%, but with margin improvement that could translate into much higher earnings estimates. A deal with China that provides more leverage for this company could easily help investors boost the multiple for this stock.
Bear of the Day:
Bassett Furniture is a Zacks Rank #5 (Strong Sell) and today it is the Bear of the Day. The problem is, I like this stock and I think there is a good future here are the homebuilders are starting to look better and better. When people buy new homes, they also buy new furniture, so there could be some good times ahead.
Bassett Furniture Industries, Inc. is a leading manufacturer and marketer of high quality, mid-priced home furnishings. With over one hundred and thirty Bassett Furniture Direct stores, Bassett has leveraged its brand name in furniture with a network of licensed and Company-owned stores that focus on providing consumers with a friendly and professional environment for buying furniture and accessories. The Company continues to sell its products to other retailers, in addition to the Company's dedicated retail store program. Bassett's retail strategy promotes affordable custom-built furniture that is ready for delivery in the home within thirty days. The stores also feature the latest on-trend furniture styles, more than one thousand upholstery fabrics, free in-home design visits, and coordinated decorating accessories.
I see a fair earnings history, with two beat and two misses over the last four reports. The problem is that the misses are bigger than the beats, so that trend must stop as soon as possible.
As a Zacks Rank #5 (Strong Sell) I know the estimates are moving lower, the question is how much lower.
Following the most recent beat, numbers came down and did so by quite a bit. The current fiscal year estimate has moved from $1.34 down to $0.76 over the last 90 days.
That sort of move is the basis of the Zacks Rank falling to the lowest level for this stock.
I see a 23x forward earnings multiple, which is a little rich for a stock that is seeing only 10% annual top line growth. The price to book at 1x is very cheap and should keep the value players on the name. The price to sales multiple of 0.4x tells me that the market doesn't value their products that highly or they would trade at a multiple of more than 1x.
3 Tech Stocks Under $10 to Buy Now
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, which they might not be able to in higher-priced stocks.
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. We are also aware of the latest sector trends and make sure to cover all of the hottest industries.
Today we’ve highlighted three stocks that fall into the broad “technology” sector. Each of these three stocks is currently trading for less than $10 a share and holds a Zacks Rank #1 (Strong Buy) or #2 (Buy) at the moment.
1. AudioEye, Inc.
Prior Close: $9.95 USD
AudioEye is a cloud-based digital accessibility company that works with firms to help make their new or existing websites and online platforms accessible and usable for people with disabilities. For instance, AudioEye can help make a website controllable through voice commands, so that people who might not be able to use a keyboard or mouse can have the complete experience of that web-page. The company has seen its stock price surge 67% over the last 12 months as it races out of the under $10 range.
The Tucson Arizona-based firm’s Q4 revenues jumped 103% to a record $1.78 million. Clearly, AudioEye is still an extremely small company, with a market cap of $74.63 million. Nonetheless, our current Zacks Consensus Estimate calls for AEYE’s current full-year revenue to soar 95% to reach $11.02 million. Meanwhile, AudioEye’s adjusted fiscal 2019 earnings are expected to surge roughly 49%. Peeking further down the road, the company’s 2020 EPS figure is projected to soar 97% above our current year estimate to come right near break-even earnings. AEYE is Zacks Rank #2 (Buy) at the moment that sports an “A” grade for Growth and a “B” for Momentum in our Style Scores system.
2. The Meet Group, Inc.
Prior Close: $5.20 USD
The Meet Group is a social media/dating app company offering multiple apps, including MeetMe, Skout and Lovoo. These apps are primarily focused on streaming video, mobile chat, gifting, and photo sharing. MEET is coming off a fiscal fourth quarter of 2018 that saw its revenue surge 31% to $52.5 million, with full-year sales up 44% to $178.6 million. Looking ahead, the company’s adjusted Q1 earnings are projected to soar 80% to reach $0.09 per share on roughly 27% revenue expansion.
Shares of MEET have skyrocketed 124% during the last 12 months. The company also boasts a strong history of quarterly earnings beats, which includes an average surprise of 48.6% over the trailing four periods. Furthermore, MEET’s valuation picture is impressive. The is profitable and is trading at just 14.9X forward 12-month Zacks Consensus EPS estimates, which marks a discount compared to its industry’s 27X average and the S&P’s 17.2X. The firm has also experienced some upward earnings estimate revision activity recently that helps it earn a Zacks Rank #2 (Buy).
3. Telenav, Inc.
Prior Close: $6.35 USD
Telenav creates connected car and location-based services and saw 1.3 million vehicles equipped with its technology enter the global market last quarter. The company works with companies such as General Motors and Toyota. Investors might also be happy to note that Telenav announced last quarter a partnership with Amazon to bring its widely popular Alexa voice assistant technology to Telenav’s navigation system offerings, which it showed off in January at CES 2019.
TNAV stock has soared 59% in 2019 to crush the S&P 500’s 15% climb and its industry’s 6% jump. Telenav is currently a Zacks Rank #2 (Buy) and rocks an “A” grade for Growth. On top of that, the Santa Clara, California-headquartered company’s price/sales ratio of 2.07 is respectable for a growing tech company and falls below some of its peers. Telenav is expected to see its fiscal Q4 2019 earnings surge 78.3% on the back of a 269% revenue growth. Meanwhile, the connected car tech firm’s full-year EPS is projected to climb nearly 76%, with its top-line expected to soar 101.7% to reach $214.17 million.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Investment Research
800-767-3771 ext. 9339
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MeetMe, Inc. (MEET) : Free Stock Analysis Report
Logitech International S.A. (LOGI) : Free Stock Analysis Report
Bassett Furniture Industries, Incorporated (BSET) : Free Stock Analysis Report
Telenav, Inc. (TNAV) : Free Stock Analysis Report
Audioeye, Inc. (AEYE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research