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Top 10 Stocks Under $20 to Buy Heading into August

Benjamin Rains

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.

Nokia NOK

Prior Close: $5.65 USD

Nokia posted stronger-than-projected Q2 results last week, highlighted by strength in its software and enterprise unit, along with the expansion of its IP routing business. On top of that, the network and telecommunications equipment firm said it has continued to improve its 5G position, which currently includes 45 commercial 5G deals and nine live networks. Shares of NOK surged following its quarterly release on July 25 and its longer-term earnings growth appears impressive. Nokia is a Zacks Rank #2 (Buy) at the moment and it is also a dividend payer that holds industry-matching P/E and price/sales ratios.

Barrick Gold Corporation GOLD

Prior Close: $17.21 USD

Gold is often considered a safe-haven asset that becomes more valuable amid uncertainty. Yet, aside from buying gold or playing the futures market, investing in gold mining stocks provides some of the best exposure to the industry that might see a boost as global economic growth concerns mount. Barrick Gold, which boasts a market cap of $30.065 billion, has mining operations and projects in 15 countries and has seen its stock price soar 35% in the last three months. The firm’s adjusted quarterly earnings are projected to surge roughly 42% on 22% revenue growth, based on our Zacks Consensus Estimates. Barrick Gold is also a dividend payer and earns a Zacks Rank #2 (Buy) right now.

iQIYI, Inc. Sponsored ADR IQ

Prior Close: $19.03 USD

IQIYI is a leading Chinese online entertainment service firm that has been called the Netflix NFLX of China. The firm, which helped pioneer video streaming in the world’s second largest economy, surpassed 100 million subscribing members in late June. IQ stock has been on a roller coaster ride over the last few years. But iQIYI is projected to report a much smaller loss this year, with revenue expected to climb 24%. These positive growth trends are projected to be slightly higher in 2020 to help IQ stock earn a “B” grade for Growth in our Zacks Style Score system. Like its fellow under $20 peers, iQIYI is currently a Zacks Rank #2 (Buy).

First Horizon National Corporation FHN

Prior Close: $16.28 USD

First Horizon National is coming off better-than-projected Q2 earnings and revenue results. Shares of the regional banking, wealth management, and capital market services company have climbed 24% in 2019 to outpace its industry’s 16% average. FHN’s adjusted fiscal 2019 EPS figure is projected to jump 11.4% on the back of nearly 5% revenue expansion that would see it reach $1.81 billion. Investors should also note that the company pays an annualized dividend of $0.56 per share and currently boast an impressive 3.42% yield. First Horizon National’s 2.2 price/sales ratio also marks a discount compared to its industry’s 2.9 average. And FHN’s longer-term positive earnings estimate revision activity helps it earn Zacks Rank #2 (Buy) right now.

General Electric Company GE

Prior Close: $10.38 USD

General Electric stock has jumped 37% in 2019 to outpace its industry’s 24% average climb. Shares of GE have, however, cooled off as of late with the company set to release its Q2 2019 financial results before the market opens on Wednesday, July 31. The multinational conglomerate, which operates within aviation, healthcare, manufacturing, power, and other segments, has seen its aviation unit pick up some of the slack from its struggling power division recently. In June, GE Aviation, which makes up about 30% of revenue, set a record for orders at the Paris Air show. GE is Zacks Rank #1 (Strong Buy) and its 0.76 P/S ratio comes in well below its industry’s 1.38 average at the moment.

Manulife Financial Corp MFC

Prior Close: $18.39 USD

Manulife’s offerings include financial advice, insurance, and wealth and asset management solutions for institutions, groups, and individuals. The firm operates mostly under John Hancock in the U.S. and Manulife everywhere else. Shares of MFC have climbed roughly 30% in 2019 to blow away its industry’s 12% average. Manulife is currently a Zacks Rank #2 (Buy) that boast “A” grades for both Value and Momentum in our Style Scores system. Along with its positive earnings estimate revisions, MFC’s dividend yield rests at 4.04% right now.

Asure Software Inc ASUR

Prior Close: $9.35 USD

Asure is a cloud computing firm that offers its business clients the chance to modernize everything from human capital management and time & attendance solutions to payroll and taxes. ASUR stock has soared over 83% so far in 2019 from just under $5 a share in January to Monday’s closing price of well over $9. The Austin, Texas-based firm’s full-year fiscal 2019 revenue is projected to jump 18% from $88.9 million to reach $105.1 million. Meanwhile, its adjusted fiscal 2019 earnings are projected to pop 5.5% to hit $0.58 per share, with 2020’s EPS figure expected to climb 23% above our 2019 estimate. Asure is currently a Zacks Rank #2 (Buy) that rocks an “A” grade for Growth and a “B” for Value and is set to report its Q2 metrics on Thursday, August 8.

Switch, Inc. SWCH

Prior Close: $13.60 USD

Switch is a data center firm that is projected to see its adjusted quarterly earnings (due out on August 7) soar 200% from $0.02 per share in the year-ago period to $0.06 a share. Meanwhile, the full-year fiscal 2019 EPS figure is projected to soar 89% from $0.09 in 2019 to $0.17 per share, on the back of roughly 9% revenue growth that would see it hit $441.85 million. Switch’s 2020 projection is even higher on the sales front, with earnings projected to climb 44% above our 2019 estimate. SWCH is a Zacks Rank #2 (Buy) that sports a “B” grade for Growth and has seen its stock price soar over 94% in 2019.

Lenovo Group Ltd. LNVGY

Prior Close: $16.19 USD

In late May, Lenovo posted record fiscal year revenue of $51 billion, which marked a 12.5% climb. The tech firm operates several business units, including PC and Smart Devices, Mobile Business Group, Data Center Group, and Intelligent Devices Group. The firm has jumped deeper into the Internet of Things recently and is currently in the midst of its “Intelligent Transformation” strategy that has seemingly paid off so far. LNVGY shares have climbed 46% over the last 12 months. Looking ahead, Lenovo's full-year ESP figure is projected to soar 56% on the back on 6% higher revenue. LNVGY price/sales ratio of 0.18 marks a discount compared to its industry’s 1.1 average. Lenovo is a dividend payer and is also a Zacks Rank #2 (Buy) right now that holds “A” grades for Value and Momentum.

JetBlue Airways Corporation JBLU

Prior Close: $19.44 USD

JetBlue reported better-than-expected second-quarter 2019 results on July 23. The airline’s main hub is New York and it currently offers flights to over 100 cities in the U.S., Caribbean, and Latin America. Investors should also note that JBLU plans to begin its “European service” in 2021, with flights from Boston and New York to London. Looking ahead, the company’s adjusted fiscal 2019 earnings are projected to climb over 28% on the back of nearly 7% revenue growth. JetBlue’s 2020 revenue is then expected to climb 8.3% above our current year estimate, with EPS set to pop over 20% higher than 2019. JBLU’s earnings revision picture has turned more positive over the last week to help it earn a Zacks Rank #1 (Strong Buy). JBLU also rocks an “A” grade for Value and a “B” for Growth.

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JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
 
Netflix, Inc. (NFLX) : Free Stock Analysis Report
 
Asure Software Inc (ASUR) : Free Stock Analysis Report
 
Nokia Corporation (NOK) : Free Stock Analysis Report
 
First Horizon National Corporation (FHN) : Free Stock Analysis Report
 
Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report
 
General Electric Company (GE) : Free Stock Analysis Report
 
Manulife Financial Corp (MFC) : Free Stock Analysis Report
 
Barrick Gold Corporation (GOLD) : Free Stock Analysis Report
 
iQIYI, Inc. Sponsored ADR (IQ) : Free Stock Analysis Report
 
Switch, Inc. (SWCH) : Free Stock Analysis Report
 
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