Top 10 Stocks Under $20
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 a Zacks Rank #1 (Strong Buy), and a variety of other factors make these companies stand out as having strong upside potential.
1. Air France (AFLYY)
Prior Close: $13.49
Air France is a global airline company, servicing hundreds of international destinations, with a focus on major transportation hubs in France. This is a company that is displaying strong estimate revision activity, as its full-year Zacks Consensus Estimate for earnings has gained 50 cents over the past 90 days. Looking ahead, the Zacks Consensus Estimate has gained more than $1.00 over that time. For both of these periods, we now expect EPS growth of 37% and 38%, respectively, and these strong growth metrics come on top of other solid fundamentals that have given the stock “A” grades for Value and Momentum in our Style Scores system.
2. Orange (ORAN)
Prior Close: $16.68
Orange, formerly known as France Telecom, is a provider of telecommunications services and one of the largest mobile providers in all of Europe. Orange has notched two positive revisions to its full-year and next-year earnings estimates in just the past 30 days, so it’s clear that analyst sentiment is strong right now. Also, the company has an “A” grade for Value and could be an interesting pick for value-minded investors. In fact, ORAN is currently sporting better-than-industry average P/E, P/S, and P/B ratios. The company also offers a respectable 2.55% dividend, so this could be a low-priced stock that is appealing to income investors.
3. Cypress Semiconductor (CY)
Prior Close: $14.65
Cypress Semiconductor is a leader provider of high-performance digital and mixed-signal integrated circuits. Just last year, the company shelled out $550 million to acquire Broadcom’s Wireless Internet of Things business and now its “WICED” Platform is one of the largest IoT portfolios in the industry. Because of this strength, it’s shaping up to be a year of aggressive earnings growth for Cypress, as our current Zacks Consensus Estimate calls for EPS to soar more than 160%, and early estimates for the next fiscal year are calling for earnings growth of 80%. Investors should look for this impressive EPS growth to continue on the back of respectable revenue growth, especially as the global demand for IoT products continues to rise.
4. Nikon Corp. (NINOY)
Prior Close: 17.10
Nikon is one of the most recognizable names in the world of cameras, camera lenses, and other optical instruments. Earnings and revenue will face tough year-over-year comparisons this year, but Nikon makes up for this with impressive cash flow growth and better-than-industry-average return on equity. Also, as the stock’s “B” grade for Value highlights, Nikon could attract some value-minded investors right now. The company’s P/S ratio of 1.07 is significantly better than its industry average, and its P/B and P/E ratios are also looking impressive. Shares are trading near their 52-week high right now, so this could be on the radar of investors looking for stocks breaking into new highs.
5. Mazda Motor Corp. (MZDAY)
Prior Close: $7.11
Based in Japan, Mazda engages in the manufacture and sale of passenger cars, commercial vehicles and automotive parts. This is another company that will face tough year-over-year comparisons, but Mazda still has plenty to offer. For one, its P/E ratio of 7.73 is better than the foreign automotive industry average, and its P/S ratio and earnings yield figures are also looking strong. This means that Mazda is holding an impressive position in its industry, which is currently sitting in the top 2% of the Zacks Industry Rank. Furthermore, the stock has dipped about 3% over the past 12 weeks, so investors could be getting a slight discount on Mazda right now.
6. Volvo AB (VLVLY)
Prior Close: $16.88
Volvo AB is the parent company of the Volvo Group, which is a manufacturer of trucks, buses, construction equipment, diesel engines, and marine and industrial engines. For a company this size, the fact that our consensus estimate is calling for EPS growth of 43% this year is quite impressive. On top of this, momentum investors will notice that Volvo has soared more than 60% over the past year, but because the stock has dipped a bit in the last week or so, there’s a fresh opportunity for quick profits here. Volvo also pays a respectable 1.57% dividend, making it one of our few low-priced income stocks. The company also recently beat its earnings estimates, notching its third positive surprise in a row.
7. Vishay Intertechnology (VSH)
Prior Close: $18.05
Vishay Intertechnology is a leading international manufacturer and supplier of discrete passive electronic components and discrete active electronic components. We’ve already noted a few value stocks on this list, but Vishay is a rare low-priced tech value stock. With a P/S ratio of 1.06 and a P/E ratio of 14.84, as well as a better-than-industry average PEG ratio, it’s not hard to see that VSH might be undervalued right now. Furthermore, the semiconductor space continues to be scorching hot, and Vishay’s group of similar businesses currently falls into the top 1% of the Zacks Industry Rank. We are also expecting this company to record earnings growth of more than 40% this year, and as we approach its quarterly report date in early August, the stock’s positive Earnings ESP should make investors feel more confident about a possible beat.
8. Renault SA (RNLSY)
Prior Close: $18.91
Renault SA designs and manufacturers vehicles, primarily passenger cars, light commercial vehicles, electric vehicles, sports vehicles, and power train components. A quick glance at Renault’s Style Scores reveals a solid fundamental picture, especially in the Value and Momentum categories. The company also offers a 2.86% dividend, so it could be also be attractive to income-minded investors. Renault shares have met some resistance at their 52-week high of $19.49, but the stock has dipped over the past week, so investors could profit on a return to these levels. Consensus estimates are also calling for sales growth of 20% and EPS growth of 25% this year, and if the company can pull this off, the stock might break into new highs.
9. Spark New Zealand (SPKKY)
Prior Close: $14.25
Spark New Zealand provides fixed line, mobile, and Internet services, voice, interconnect, managed data, and international products and services and telecommunication services. Spark currently has an “A” grade for Growth, and although its earnings growth figures are respectable, the real story is the company’s shocking cash flow growth of nearly 87%. Furthermore, Spark has notched a better-than-industry average P/E ratio, and that’s in a group of businesses that currently sit in the top 5% of the Zacks Industry Rank. The company also offers a 4.34% dividend yield, making it one of the most appealing income picks on our list.
10. Telenor ASA (TELNY)
Prior Close: $19.46
Telenor ASA is a leading telecommunications company in Norway, which is among the most advanced telecommunications markets in the world. With an overall VGM grade of “A,” it’s clear that this stock is fundamentally sound, but it’s Telenor’s impressive P/E ratio, solid cash flow growth, and 19% gain over the past month that really stick out. Thanks to positive estimate revision activity, the company has also seen its Zacks Consensus Estimate gain about 12 cents over the past 60 days. The stock is also looking to continue its momentum after its shocking 145% earnings beat in the most recent quarter.
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Air France-KLM SA (AFLYY) : Free Stock Analysis Report
Nikon Corp. (NINOY) : Free Stock Analysis Report
Cypress Semiconductor Corporation (CY) : Free Stock Analysis Report
Telenor ASA (TELNY) : Free Stock Analysis Report
Mazda Motor Corporation (MZDAY) : Free Stock Analysis Report
RENAULT SA (RNLSY) : Free Stock Analysis Report
Volvo Ab (VLVLY) : Free Stock Analysis Report
Spark New Zealand Ltd. (SPKKY) : Free Stock Analysis Report
Orange (ORAN) : Free Stock Analysis Report
Vishay Intertechnology, Inc. (VSH) : Free Stock Analysis Report
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