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. We’ve also spread this list across different sectors and industries so investors looking for low-priced stocks can put together a diverse portfolio.
1. Heritage-Crystal Clean HCCI
Previous Close: $13.35
Heritage-Crystal Clean is a leading provider or parts cleaning, used oil, re-refining, and waste services for the commercial and industrial marketplaces. The company has seen five positive estimate revisions for its current-quarter earnings over the past 60 days, and the Zacks Consensus Estimate has increased by five cents in that time. With shares gaining over 25% year-to-date, Heritage-Crystal Clean looks to move even higher with further earnings growth.
2. Aegean Marine ANW
Previous Close: $10.12
Aegean Marine is a fuel logistics company that physically supplies refined marine fuel and lubricants to ships both in port and at sea. The company has seen two positive revisions for its current-quarter earnings over the last 30 days, and its Zacks Consensus Estimate has gained eight cents in that period. Aegean Marine also boasts strong Style Scores and looks to see earnings growth of 40% this year.
3. AXT, Inc. AXTI
Previous Close: $4.31
AXT manufactures and distributes high-performance compound semiconductor substrates, as well as opto-electronic semiconductor devices such as high-brightness light emitting devices. AXT has seen three positive revisions for its current-quarter earnings in the last 60 days, driving its Zacks Consensus Estimate three cents higher. The company falls into segment that lies in the top 8% of the Zacks Industry Rank, and it hopes to turn a profit and see earnings growth of 280% this year.
4. Francesca’s Holdings FRAN
Previous Close: $16.03
Francesca’s Holdings is a specialty retailer of women’s apparel operating a chain of boutique stores in the United States. The company has seen two positive estimate revisions for its current-quarter earnings over the last seven days, and it currently has a positive Earnings ESP for the current quarter, the next quarter, the full year, and next year. Francesca’s also boasts strong Style Scores and a VGM score of “A.”
5. Hallador Energy HNRG
Previous Close: $7.14
Hallador Energy is engaged in the production of steam coal; the company’s primary operating property is the Carlisle coal mine in western Indiana. Hallador has seen one positive revision for its current-quarter earnings in the last 60 days, bringing its Zacks Consensus Estimate six cents higher. The coal industry currently falls in the top 11% of the Zacks Industry Rank and Hallador also sports a VGM score of “A.”
6. Performant Financial PFMT
Previous Close: $2.38
Performant Financial is engaged in providing technology-enabled recovery and related analytics services to both government and private clients in the United States. The company has surpassed the Zacks Consensus Estimate by an average of 192% in each of the trailing four quarters. Performant has also been able to grow its earnings, despite sluggish revenue, thanks to company-wide cost saving initiatives, and we expect further earnings growth this year.
7. Spartan Motors SPAR
Previous Close: $9.61
Spartan is a leading designer, engineer and manufacturer of custom heavy-duty chassis. The company has seen one positive revision for its current quarter earnings over the past 60 days, which has moved the Zacks Consensus Estimate one penny higher. Overall, it has a VGM score of “A” and leads a sector currently in the top 32% of the Zacks Industry Rank.
8. Stoneridge Inc. SRI
Previous Close: $18.27
Stoneridge Inc. is a manufacturer of highly engineered electrical and electronic components, modules and systems for the automotive industry. The stock is currently a great growth pick, which is exemplified by its “A” grade for growth in our Style Scores system. This quarter we expect the company to see revenue growth of 13.3% and earnings growth of 30.9%. It also holds an “A” grade for Value with its Forward P/E ratio of 13.46.
9. TTM Technologies TTMI
Previous Close: $10.99
TTM Technologies provides time-critical, one-stop manufacturing services for highly complex printed circuit boards. The company has seen one positive estimate revision for its current quarter earnings, and the Zacks Consensus Estimate has risen by six cents in that time. This year, our consensus estimates call for TTM to see earnings growth of 470% on revenue growth of 18.4%. The stock also has a VGM score of “A.”
10. CONE Midstream Partners CNNX
Previous Close: $19.66
CONE Midstream Partners owns, operates, develops and acquires natural gas gathering and other midstream energy assets. The company has seen three positive revisions for its current-quarter earnings over the last 30 days, and its Zacks Consensus Estimate has been raised by a penny over that period. For the full year, we expect CONE to see 23% revenue growth and 25% earnings growth.
A stock’s market price is not a clear indicator of whether it is a good investment. However, the nice thing about the Zacks Rank is that it can be applied to stocks of any price. All of the stocks highlighted here hold a Zacks Rank #1 (Strong Buy) rankings, while also possessing other qualities that help them stick out. For smaller investors looking to get into solid stocks at lower prices, this list is a great place to start and all of these companies could just be great picks going forward.
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AEGEAN MARINE (ANW): Free Stock Analysis Report
CONE MIDSTREAM (CNNX): Free Stock Analysis Report
STONERIDGE INC (SRI): Free Stock Analysis Report
SPARTAN MOTORS (SPAR): Free Stock Analysis Report
HALLADOR ENERGY (HNRG): Free Stock Analysis Report
AXT INC (AXTI): Free Stock Analysis Report
TTM TECHNOLOGIE (TTMI): Free Stock Analysis Report
HERITAGE-CRYSTL (HCCI): Free Stock Analysis Report
FRANCESCAS HLDG (FRAN): Free Stock Analysis Report
PERFORMANT FINL (PFMT): Free Stock Analysis Report
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