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. Kemet Corporation (KEM)
Prior Close: $17.85
Kemet and its subsidiaries make up one of the world’s largest manufacturers of solid tantalum capacitors and multilayer ceramic capacitors, the two fastest growing sectors of the U.S. capacitor industry. Kemet crushed the Zacks Consensus Estimate by nearly 53% in its recent quarter, putting itself on track to see full-year earnings growth of 300%. Revenues are also projected to improve by over 56%. KEM has a Zacks Rank #1 (Strong Buy), as well as an “A” grade in the Value and Growth categories of our Style Scores system.
2. Super Micro Computer, Inc. (SMCI)
Prior Close: $16.65
Super Micro Computer designs, develops, manufactures and sells energy-efficient, application optimized server solutions based on the x86 architecture. The stock is a Zacks Rank #1 (Strong Buy) and also sports an “A” grade for Value. SMCI is trading at just 10.3x earnings, offering investors a great value opportunity in the tech sector. Earnings estimates are on the rise for current and future quarters, and the company itself is expected to expand nicely. For example, total revenues are projected to improve by 20% in the current year.
3. 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 few years. Shares have risen more than 33% over the past three months and could be attractive to momentum investors looking to make a play on rising oil prices.
4. Unisys Corporation (UIS)
Prior Close: $10.50
Unisys is a worldwide technology services and solutions company. The stock is currently sporting a Zacks Rank #1 (Strong Buy) and an “A” grade for Growth. UIS is also sporting an “A” grade in the Value category. Unisys is projected to see its bottom line improve by 95.3% in the current fiscal year. The company was also able to reverse its trend of five-consecutive negative surprises in the latest quarter, signaling that its fortunes could be turning.
5. Conduent Inc. (CNDT)
Prior Close: $18.77
Conduent is a business process services company that helps organizations improve interactions with customers and employees. The stock currently has a Zacks Rank #1 (Strong Buy), and the Zacks Consensus Estimate for the company’s full-year earnings has gained eight cents over the past 60 days. Analysts now expect Conduent to see EPS growth of 28% this fiscal year. CNDT is also an attractive value option with a Forward P/E of 17.2 and P/S of 0.7.
6. Nexa Resources S.A. (NEXA)
Prior Close: $17.11
Nexa Resources is developing and operating mining and smelting assets primarily in Latin America and is one of the largest zinc producers in the world. The company recently went public in late-October 2017. The stock is now displaying a Zacks Rank #1 (Strong Buy), as well as an “A” grade for Value. Shares are currently trading with a forward 12-month earnings multiple of 7.1x. NEXA also has an attractive P/S of 0.8. Income investors would also appreciate the company’s 2.7% dividend yield.
7. Rocky Brands, Inc. (RCKY)
Prior Close: $20.20
Rocky Brands is a leading footwear and apparel maker, and its portfolio includes brands such as Durango, Lehigh, Dickies, and Georgia Boot. RCKY is currently sporting both a Zacks Rank #1 (Strong Buy) and an “A” grade for Value. After crushing earnings estimates by 48% in the most recent quarter, Rocky Brands witnessed positive forward-looking revision activity. Still, the stock is trading at just 14.4x forward earnings.
8. Textainer Group Holdings Limited (TGH)
Price Close: $16.85
Textainer Group is the world’s largest lessor of intermodal containers with a total fleet of more than 1.3 million containers. The stock is a Zacks Rank #1 (Strong Buy) and is trading with a Forward/PE of just 12.0. Meanwhile, earnings estimates are trending higher and EPS growth is now expected to reach 240% this fiscal year. Revenues are also expected to improve by 17% this year. With the underlying fundamentals looking this strong for fiscal 2018, investors should love TGH’s current valuation.
9. Flotek Industries, Inc. (FTK)
Prior Close: $6.04
Flotek Industries develops and delivers prescriptive chemistry-based technology, including specialty chemicals, to clients in the energy, consumer industrials and food & beverage industries. FTK is another Zacks Rank #1 (Strong Buy) with great growth prospects. Earnings are expected to soar into the green, while sales are expected to improve by double digits in each of the next two fiscal years. The stock is also starting to generate positive momentum, gaining more than 14% over the past three months, despite broader market volatility.
10. Builders FirstSource, Inc. (BLDR)
Prior Close: $19.61
Builders FirstSource is a leading supplier and manufacturer of structural and related building products for residential new construction in the U.S. The company’s earnings are set to grow at 42% this year. Over the past couple of months, analysts have become increasingly bullish on the stock, with six upward estimate revisions for the company’s 2018 earnings. This has led to a sharp spike in the Zacks Consensus Estimate for 2018. BLDR is now a Zacks Rank #1 (Strong Buy).
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Textainer Group Holdings Limited (TGH) : Free Stock Analysis Report
Super Micro Computer, Inc. (SMCI) : Free Stock Analysis Report
Unisys Corporation (UIS) : Free Stock Analysis Report
Builders FirstSource, Inc. (BLDR) : Free Stock Analysis Report
Kemet Corporation (KEM) : Free Stock Analysis Report
Ecopetrol S.A. (EC) : Free Stock Analysis Report
Flotek Industries, Inc. (FTK) : Free Stock Analysis Report
Rocky Brands, Inc. (RCKY) : Free Stock Analysis Report
Conduent Inc. (CNDT) : Free Stock Analysis Report
Nexa Resources S.A. (NEXA) : Free Stock Analysis Report
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