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 ten stocks that are currently trading for under $20 per share. All of these stocks currently have at least a Zacks Rank #2 (Buy), and a variety of other factors make these companies stand out as having strong upside potential.
1. Ecopetrol S.A. (EC)
Prior Close: $18.67
Ecopetrol is a petroleum company focused on identifying opportunities primarily in Columbia and northern Peru. EC is holding a Zacks Rank #2 (Buy), as well as an “A” grade for Value. The stock is also a nice growth pick, as Ecopetrol is projected to improve its earnings at an annualized rate of 43% over the next three to five years. Shares have risen more than 0% over the past month and could be attractive to momentum investors looking to make a play on rising oil prices.
2. Cypress Semiconductor Corporation (CY)
Prior Close: $14.85
Cypress Semiconductor is a leading provider of high-performance digital and mixed-signal integrated circuits, and after shelling out $550 million for Broadcom’s Internet of Things business, its “WICED” platform is now one of the largest IoT portfolios in the industry. CY is currently a Zacks Rank #1 (Strong Buy) and is expected to witness EPS growth of 40% this fiscal year. The stock is also trading at an attractive 11.9x forward 12-month earnings. Meanwhile, CY sports a PEG of just 0.7, so investors know they are getting a great price for the company’s projected earnings growth.
3. FGL Holdings (FG)
Prior Close: $9.42
FGL is a holding company offering fixed annuities and life insurance products, forming after the merger of CF Corp. and Fidelity & Guaranty Life was completed late last year. The stock is sporting both a Zacks Rank #1 (Strong Buy) and an “A” grade for Value in our Style Scores system. FG is trading with a P/E of 8.8, which marks a discount to its industry average. Value investors will also love its P/B ratio of just 1.0. The company reports its latest results next week, and earnings estimates for the quarter are trending upward into the announcement date.
4. BlackBerry Limited (BB)
Prior Close: $10.53
BlackBerry is best known to the public for its once-iconic brand of smartphones, but the company ditched hardware manufacturing recently and now serves as an enterprise software and services company. This transition is finally getting the attention of analysts, and an improving earnings outlook has earned the stock a Zacks Rank #1 (Strong Buy). The company has also managed to surpass EPS estimates in nine consecutive quarters. Still, this is one for the long haul, with earnings expected to expand at an annualized rate of nearly 19% over the next three to five years.
5. Lloyds Banking Group PLC (LYG)
Prior Close: $3.53
Lloyds Banking Group is a U.K.-based financial services company offering retail banking, insurance and investments, and wholesale and international banking. The stock is currently a Zacks Rank #1 (Strong Buy) and trades with attractive valuation metrics, including a P/E of 7.1, a P/B of 1.0, and a P/S of 1.8—all of which mark discounts to the “Banks – Foreign” industry averages.
6. China Life Insurance Company Limited (LFC)
Prior Close: $14.10
China Life Insurance is the leading life insurance company in China. Analyst outlook for the company is improving, with our consensus projection for its full-year 2018 earnings improving by three cents over the past two months—earning the stock a Zacks Rank #1 (Strong Buy). LFC is now expected to witness EPS growth of 14% this year. The stock is also trading with an “A” grade for Value, underscored by its attractive P/E of 13.3 and better-than-industry-average PEG of 0.5. Investors are getting a great price for the company’s earnings outlook and growth.
7. CVR Refining, LP (CVRR)
Prior Close: $17.35
CVR Refining is an independent MLP that operates crude oil transportation and storage facilities, along with a vast network of pipelines. The stock was one of the top performing energy plays in April, gaining more than 34% in the month. On top of its strong momentum, CVRR is also sporting a Zacks Rank #1 (Strong Buy). This is also one of the few stocks on the list that income investors will love, with its status as an MLP meaning that investors witness a dividend yield about 10.4%.
8. AudioCodes Ltd. (AUDC)
Prior Close: $7.28
AudioCodes designs, develops and markets enabling technologies and communication components for the transmission of voice, fax and modem over packet networks. Analysts have become increasingly bullish on AUDC lately, and our consensus projection for its full-year earnings has moved three cents higher in the last month. The stock is a Zacks Rank #2 (Buy) based on this revision activity. The company is now expected to witness EPS growth of 22% on 9% higher revenue this fiscal year. Meanwhile, AUDC’s P/E of 16.2 represents a discount to its industry average.
9. Callaway Golf Company (ELY)
Prior Close: $17.23
Callaway is one of the largest golf apparel and equipment companies in the world, manufacturing respected gear for both professionals and amateurs. The stock is currently sporting a Zacks Rank #2 (Buy), as well as an “A” grade for Momentum. This is an interesting pick for those looking to ride a recent trend, as shares have surged more than 18% in just three months. This momentum is inspired by the company’s recent earnings beat and positive revision activity. ELY’s consensus EPS estimate for 2018 has gained 10 cents over the past week, and Callaway is now expected to see earnings growth of 51% this fiscal year.
10. Two River Bancorp (TRCB)
Prior Close: $17.22
Two River Bancorp a state-chartered commercial bank engaged in commercial and retail banking in New Jersey. The company is coming off a record quarter in terms of net income and earnings per share, which has helped its outlook improve and lifted the stock to a Zacks Rank #2 (Buy). For a regional bank, this is a hot growth option, with earnings and revenue expected to improve by 36% and 12%, respectively, in 2018. Meanwhile, shares are trading at just 13.5x forward 12-month earnings.
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CVR Refining, LP (CVRR) : Free Stock Analysis Report
Cypress Semiconductor Corporation (CY) : Free Stock Analysis Report
AudioCodes Ltd. (AUDC) : Free Stock Analysis Report
Lloyds Banking Group PLC (LYG) : Free Stock Analysis Report
Two River Bancorp (TRCB) : Free Stock Analysis Report
China Life Insurance Company Limited (LFC) : Free Stock Analysis Report
Callaway Golf Company (ELY) : Free Stock Analysis Report
Ecopetrol S.A. (EC) : Free Stock Analysis Report
BlackBerry Limited (BB) : Free Stock Analysis Report
FGL Holdings (FG) : Free Stock Analysis Report
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