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. 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.
Today we’ve highlighted 10 stocks that are currently trading for under $20 per share. All of these stocks sport a Zacks Rank #2 (Buy) or better at the moment, along with a variety of other positive factors that help these companies stand out.
Ford Motor Company (F)
Prior Close: $10.30 USD
Shares of Ford have surged 35% this year to outpace its industry’s 9% average climb. The auto maker saw its SUV and truck sales pop by 5% and 4.1%, respectively, in its most recent quarter. Going forward, the firm is ready to dive into the autonomous vehicle world and is set to launch 40 electric offerings by 2022. Ford has seen its earnings estimate revision activity trend heavily in the right direction recently to help it earn a Zacks Rank #2 (Buy). Ford’s current-quarter earnings are projected to surge 22%. Plus, F is trading at a discount compared to its industry and has a dividend yield of 5.83%.
Knowles Corporation (KN)
Prior Close: $ 18.55 USD
Knowles Corporation provides audio processing, advanced micro-acoustic, and precision device solutions geared toward IoT products, mobile devices, microphones, hearing aids, and more. The firm is coming off a better-than-expected Q1 2019 and has seen its stock price jump 40% this year. KN is trading below its industry’s average at 20.7X forward 12-month Zacks Consensus EPS estimates. Our current Zacks Consensus Estimate calls for Knowles’ adjusted full-year earnings to pop roughly 13% on 5.5% revenue growth. On top of that, KN’s fiscal 2020 EPS figure is expected to climb over 15% above our current-year estimate and its positive longer-term earnings estimate revision activity helps Knowles earn a Zacks Rank #1 (Buy) and an “A” for Momentum in our Style Scores system.
Host Hotels & Resorts, Inc. (HST)
Prior Close: $19.48 USD
Host Hotels & Resorts is one of the largest lodging-based real estate investment trusts in the world and owns upscale and luxury hotels from Miami to Honolulu. Shares of HST have climbed 18% in 2019 to come in above the broader real estate market’s 15% climb. On top of that, Host Hotels is trading far below its industry’s average forward P/E of 15.8X at 11.1X. Host Hotels & Resorts is also a dividend payer with a 4.1% yield and is a Zacks Rank #2 (Buy) right now that rocks a “B” grade for Value.
AudioEye, Inc. (AEYE)
Prior Close: $8.77 USD
AudioEye is a cloud-based digital accessibility company. In short, it works with other firms that are looking to make their own websites and online platforms accessible and usable to use for people with disabilities. The Tucson Arizona-based firm is projected to see its current full-year revenue jump 95% to $11.02 million. Meanwhile, its adjusted fiscal 2019 earnings are expected to surge nearly 50%. Peeking further ahead, the company’s 2020 EPS figure is projected to soar 97% above our current year estimate as it races toward positive earnings. AEYE is a Zacks Rank #2 (Buy) at the moment, with an “A” grade for Growth.
The Meet Group, Inc. (MEET)
Prior Close: $5.57 USD
The Meet Group is a social media company offering several different social entertainment apps, including MeetMe, Skout, and Lovoo. These apps are primarily focused on streaming video, mobile chat, gifting, and photo sharing. Shares of MEET have soared 108% over the last 12 months. Despite the climb, MEET is trading at 15.7X forward 12-month Zacks Consensus EPS estimates, which marks a discount compared to its industry's 27X average. The company’s adjusted first-quarter earnings, which are due out on May 8, are projected to soar 80% on the back of roughly 27% revenue growth. Lastly, the company’s positive earnings estimate revision activity recently helps it earn a Zacks Rank #2 (Buy).
Cloudera Inc. (CLDR)
Prior Close: $11.00 USD
Cloudera provides cloud-based big data solutions and works with the likes of Intel INTC and other big names in technology. The firm officially completed its merger with enterprise data peer Hortonworks, Inc. in January. Shares of CLDR slipped this year after it reported a wider-than-excepted quarterly loss to help extend its downward trend. With that said, Cloudera’s Q1 fiscal 2020 revenue is expected to soar 83%, with full-year sales projected to surge over 77%. Meanwhile, the company’s adjusted fiscal 2021 earnings are projected to skyrocket 133% above our current year estimate (-$0.36 a share) to reach $0.12 per share. Cloudera rocks “B” grades for Growth and Momentum and is a Zacks Rank #2 (Buy).
Hertz Global Holdings, Inc. (HTZ)
Prior Close: $18.40 USD
Hertz operates vehicle rental businesses throughout the world under the Hertz, Dollar, and Thrifty brands. The firm’s Q1 2019 earnings, which are due out on May 6, are projected to pop 17% on 5.75% revenue expansion. Better yet, Hertz is projected to see its current full-year EPS figure soar 482% from a loss of $0.17 in fiscal 2018 to positive earnings of $0.65. The company’s bottom-line is then expected to surge 142% above our current-year estimate in 2020. HTZ is a Ranks Rank #1 (Strong Buy) at the moment that holds “B” grades for Value and Momentum and an “A” for Growth to help it earn an overall “A” VGM score.
FireEye, Inc. (FEYE)
Prior Close: $16.19 USD
FireEye is a cybersecurity company with offerings tailored to enterprises and governments and has seen its stock price pop 23% in 2019. The company’s adjusted full-year EPS figure is projected to skyrocket 138% to reach $0.19 per share. Peeking further ahead, the company’s earnings are expected to climb 70% above our current-year estimates in the following year. Moreover, FEYE has a long-term projected earnings growth rate of 16%. FEYE is also a Zacks Rank #2 (Buy) that boasts “A” grades for both Growth and Momentum in our Style Scores system. And FireEye’s P/S ratio of 3.9 marks a discount to the industry’s average of 8.7.
Switch, Inc. (SWCH)
Prior Close: $10.79 USD
Switch is a data center firm that is projected to see its first-quarter 2019 earnings—due out Wednesday, May 8—pop from $0.02 per share in the year-ago period to $0.04. This impressive growth is projected to continue for the full year, with its adjusted EPS figure expected to soar roughly 90% on the 8.4% revenue growth. SWCH is currently a Zacks Rank #2 (Buy) that sports an “A” grade for Growth. Furthermore, the company’s earnings are projected to climb 12% over the next three to five years on an annualized basis.
Parsley Energy, Inc. (PE)
Prior Close: $19.08 USD
Parsley Energy is an independent oil and natural gas company that operates in the Permian Basin. PE is currently a Zacks Rank #2 (Buy) that boasts a “B" grade for Value and an “A” for Momentum. The company’s current full-year earnings are projected to jump 9.9% on 7.9% revenue growth. Plus, Parsley Energy’s earnings are expected to soar 60% above our current year estimate in fiscal 2020. Meanwhile, the firm’s revenue is projected to climb 29% higher than 2019 in the coming year. PE stock is also trading at 10.3Xforward 12-month Zacks Consensus EPS estimates, which marks a discount compared to its industry's 14X average.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Hertz Global Holdings, Inc (HTZ) : Free Stock Analysis Report
MeetMe, Inc. (MEET) : Free Stock Analysis Report
FireEye, Inc. (FEYE) : Free Stock Analysis Report
Knowles Corporation (KN) : Free Stock Analysis Report
Ford Motor Company (F) : Free Stock Analysis Report
Parsley Energy, Inc. (PE) : Free Stock Analysis Report
Intel Corporation (INTC) : Free Stock Analysis Report
Host Hotels & Resorts, Inc. (HST) : Free Stock Analysis Report
Cloudera, Inc. (CLDR) : Free Stock Analysis Report
Switch, Inc. (SWCH) : Free Stock Analysis Report
Audioeye, Inc. (AEYE) : Free Stock Analysis Report
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