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. LG Display Co. (LPL)
Prior Close: $15.60
LG Display primarily manufacturers and sells thin film transistor LCD panels. The company is the largest LCD panel maker in the world. This stock is a value investor’s dream, as its “A” grade for Value is underscored by its better-than-industry-average P/B, P/E/, and P/CF ratios. We are also expecting to see strong earnings growth from LG Display this year. Indeed, the current Zacks Consensus Estimate would represent EPS growth of nearly 85%. Investors should also note that LPL falls into a category of businesses that currently sit in the top 36% of the Zacks Industry Rank.
2. Orange SA (ORAN)
Prior Close: $16.84
Orange, formerly known as France Telecom, is a provider of telecommunications services and one of the largest mobile providers in all of Europe. Earnings estimate revision activity has been favorable for the company, as its Zacks Consensus Estimates for the current and next fiscal year have both moved five cents higher over the past 60 days. Also, its current-year consensus estimate would represent staggering EPS growth of nearly 500%. Furthermore, the stock’s “A” grades for Value and Momentum highlights its fundamental strength and prove that this could be a good pick for several types of trend-focused investors.
3. Air France (AFLYY)
Prior Close: $12.32
Air France is a global airline company, servicing hundreds of international destinations, with a focus on major transportation hubs in France. This is another company seeing strong estimate revision activity, as its full-year Zacks Consensus Estimate has moved 35 cents higher over the last 60 days. This is a solid growth pick too; current estimates are calling for the company to post EPS growth of about 25% this year and next year. This stock also has an “A” grade for Value—boosted by its impressive (even for an airline) P/E ratio of 6.73—and an overall VGM grade of “A”—lifted by its strong fundamental metrics across all of our Style Scores categories.
4. ARI Network Services (ARIS)
Prior Close: $6.08
ARI Network Services is a provider of business-to-business Internet e-commerce solutions for manufacturers with shared distribution and service networks. The company has witnessed positive revisions to its current-quarter, full-year, and next-year earnings estimates as recently as the past week, and it is now expected to post EPS growth of 20% and sales growth of 11% this year. Also, this is a stock that is soaring into new highs, which could intrigue some momentum-focused investors. In fact, the stock has an “A” grade in our Momentum category, as well as a “B” grade in our overall VGM category.
5. Conn’s, Inc. (CONN)
Prior Close: $19.50
Conn’s is a specialty regional retailer, operating electronics, furniture, mattress, and appliance stores in the Texas and Louisiana area. Despite sluggish sales and a weak retail environment, Conn’s has shed costs and is expected to post EPS growth of 265% this year and 150% next year. The company has also been able to surpass the Zacks Consensus Estimate for earnings by an average of nearly 81% in each of the trailing four quarters. The stock is also sporting solid fundamentals, including “B” grades for Value and VGM, as well as “A” grade for Growth and Momentum.
6. StealthGas Inc. (GASS)
Prior Close: $3.22
StealthGas is a provider of international seaborne transportation services, carrying petroleum and petrochemical gas products to LPG producers and users. This fiscal year promises to be one of aggressive earnings growth for the company, as our current consensus estimate calls for EPS to skyrocket more than 400%. The stock is also a nice value pick, as evidenced by its “A” grade in that category. In fact, this stock also has an “A” grade for Momentum and VGM. What’s more, near-term potential looks good, as the company’s current-quarter earnings estimate has gained six cents over the last 60 days and it is now expected to post a profit.
7. Nobilis Health Corp. (HLTH)
Prior Close: $1.90
Nobilis Health owns and manages ambulatory and acute care facilities, as well as ambulatory surgery centers, acute care hospitals, imaging centers and urgent care clinics. Like many companies on this list, Nobilis is set to post a nice bump in earnings and revenues this year. Indeed, our current consensus estimates call for EPS growth of 27% and sales growth of 17%. The stock also has better-than-industry-average P/E, P/B, and PEG ratios, making it an interesting value pick. We’ve also seen Nobilis record better margins than its industry peers, and its industry is actually in the top 23% of the Zacks Industry Rank right now.
8. J. Jill, Inc. (JILL)
Prior Close: $13.45
J. Jill is a specialty retailer of women’s apparel, operating a number of stores and an e-commerce business that sell clothing and accessories. In defiance of the retail slump, the company surpassed the Zacks Consensus Estimate by more than 33% last quarter, and it looks to continue that momentum towards the end of the fiscal year, which it is expected to record EPS growth of 25% in. That growth is expected to continue into next year too, with EPS growth projections sitting at 17% for that period. And that’s on the back of solid sales growth, especially for a retailer. Our current consensus estimates call for sales growth of 11% and 9%, respectively. This stock also has an “A” grade for Value, as well as a “B” grade for VGM.
9. Navios Maritime Partners (NMM)
Prior Close: $1.67
Navios Maritime is an international owner and operator of dry cargo vessels, engaging in the transportation of dry-bulk commodities like iron ore and coal. While this will be a tough period for year-over-year growth comparisons, we are seeing the company’s earnings estimates increase a bit thanks to three positive revisions for the current quarter, next quarter, full year, and next year within the past 60 days. Indeed, recent performance and updated estimates now indicate that it will be a profitable year for Navios. This is also another solid fundamental stock, as it has an “A” grade for Value and a “B” grade in the overall VGM category.
10. Freightcar America, Inc. (RAIL)
Prior Close: $17.32
Freightcar America manufactures railroad freight cars, with particular expertise in coal-carrying railcars. This stock is yet another low-priced stock that should intrigue value investors. It has an “A” grade for Value, as well as P/B and P/S ratios that are better than its industry peers. The stock also has an overall VGM grade of “B,” and the company is coming off an earnings beat of more than 350%. Shares are now up 15% year-to-date, and they could keep climbing higher if the company can outperform on earnings again.
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