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The Zacks Analyst Blog Highlights: Ericcson, eGain, inTest, Trivago and Snap

Genesee & Wyoming's (GWR) November traffic dips due to weak performances at the Australian and U.K./European operations.

 

For Immediate Release

Chicago, IL – December 12, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Ericcson ERIC, eGain Corp. EGAN, inTest Corp. INTT, Trivago N.V. ADS TRVG and Snap Inc. SNAP.

Here are highlights from Tuesday’s Analyst Blog:

5 of the Best Stocks Under $10 for 2019

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 shares. 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.

Moreover, recent volatility in the stock market has lowered valuations and taken several notable stocks under mental per-share thresholds as investors start to look toward the New Year. Today we’ve highlighted five stocks that are currently trading for under $10 per share.

All of these stocks currently sport a Zacks Rank #2 (Buy) or better, and the selected companies are showing signs of outpacing the market throughout the remainder of the calendar year—and more importantly, into 2019.

Check out these five great stocks under $10 for 2019:

1. Ericcson

Prior Close: $8.78

Ericsson is a world-leading supplier in the telecommunications and data communications industries, offering advanced solutions for mobile and fixed networks, as well as consumer products. ERIC is sporting a #1 (Strong Buy) with just a few weeks left in the year, and its “A” grade in our Growth category adds to that promise going forward.

Earnings growth is expected to total nearly 160% in fiscal 2018, and early estimates have that figure improving another 47% next year. Earnings estimates for 2019 have already trended upward, which is a sign of positive analyst sentiment. The stock also seems to be reasonably valued, as evidenced by its P/S ratio of 1.2. This stock warrants a look while it is still cheap.

2. eGain Corp.

Prior Close: $7.13

eGain is a provider of customer engagement cloud solutions. The firm offers B2C companies a simple and affordable suite of products which deliver multichannel customer service through a single interaction and knowledge management platform. EGAN has a #1 (Strong Buy) and is looking poised for strong growth this fiscal year, which ends in June 2019. Earnings are expected to improve by 33% on 7% revenue growth in that period.

EGAN’s valuation is stretched, as the stock trades like a long-term growth prospect typically would. However, it does have a P/S ratio of 3.2, which is a steep discount to the industry average of 4.1. The Price-to-Sales ratio is often a better value metric for these smaller tech stocks, and EGAN is trading at a smaller revenue multiple than one might expect from a cloud pure-play right now.

3. inTest Corp.

Prior Close: $6.78

InTest makes ATE interface solutions and temperature management products, which are used by semiconductor manufacturers to perform important testing of certain circuits and wafers. The big thing to like here for 2019 is the magnitude of EPS estimate revisions. The Zacks Consensus mark for this period has increased 21 cents, or 28%, in the past 60 days. This means sentiment related to next year’s earnings is improving dramatically. Moreover, the stock is trading with a P/E of just 6.7, which is a discount compared to its industry’s average.

4. Trivago N.V. ADS

Prior Close: $5.80

Trivago is a travel booking website. Based in Germany, it offers deal-oriented service related to booking hotels and lodging to a wide global user base. TRVG was battered in the second half of last year, but that selling found a stopping point this summer. Though the stock has pulled back in recent volatile condition, it is still more than 40% off its lows. TRVG is currently sporting a #2 (Buy) and an “A” grade in the Growth category of our Style Scores system.

In 2019, earnings are expected to inch into the green and improve roughly 113% from the current year’s projected totals. On a long-term basis, analysts see Trivago notching an annualized growth rate of 7.5%.

5. Snap Inc.

Prior Close: $5.67

Snap is the parent company of Snapchat, a popular picture and video messaging mobile application. It is no secret that Snap has struggled since its IPO in the face of stiff competition from bigger social media companies, but the firm is finally starting to win analyst favor. Estimates for its fiscal 2019 have improved, and while Snap is still likely to be in the red, our EPS consensus is calling for a bottom-line improvement of 36%.

That would come on the back of 34% revenue growth, which is expected on top of the 41% sales growth this year is estimated to see. Strong earnings and revenue growth should help this #2 (Buy)-ranked stock find a bottom and surge into the New Year.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Trivago N.V. ADS (TRVG) : Free Stock Analysis Report
 
Snap Inc. (SNAP) : Free Stock Analysis Report
 
eGain Corporation (EGAN) : Free Stock Analysis Report
 
Ericsson (ERIC) : Free Stock Analysis Report
 
inTest Corporation (INTT) : Free Stock Analysis Report
 
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