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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 five stocks that are currently trading for under $10 per share. These stocks are also showing signs for solid growth throughout 2017, and all of them currently hold a Zacks Rank #1 (Strong Buy).
UTStarcom is engaged in providing interactive protocol-based network solutions for cable and telecom operators. Based on our current consensus estimates, the Beijing-based company is poised to post quarterly EPS growth of 100% on May 12. UTStarcom has an impressive earnings surprise record, beating the Zacks Consensus Estimate by an average of 103% over the trailing four quarters, and it will hope that another beat can help continue its recent momentum that has seen the stock gain over 18% in the past 12 weeks. The company is also sporting a “B” grade for Value and an “A” grade for Growth.
2. PC-Tel, Inc.
Prior Close: $7.74
PC-Tel is a developer of wireless solutions, including LAN software products and software-defined receivers that optimize the performance of cellular and Wi-Fi networks. It’s shaping up to be a year of aggressive earnings growth for PC-Tel, and our current Zacks Consensus Estimate calls for EPS growth of 80% when the company reports on May 9. Overall, PC-Tel is expected to post EPS growth of 150% this fiscal year. Moreover, the stock has gained more than 13% over the past 12 weeks, and as it approaches its 52-week high, PC-Tel will hope another solid earnings report can help it break into a new range.
Papa Murphy’s Holdings operates as a franchisor and operator of the “Take 'N' Bake” pizza chain in the United States. The innovative pizza chain will face tough year-over-year EPS comparisons when its reports on May 10, but it’s still shaping up to be a solid fiscal year for the company. Our current consensus estimates call for earnings growth of 31% this year, and we also expect to see slight revenue growth, despite slumping sales across the retail restaurant industry. Furthermore, we have seen three positive estimate revisions for the company’s full-year earnings over the past 60 days. On top of all of this, the stock is sporting an “A” grade for Value.
4. ZAGG Inc.
Prior Close: $7.10
ZAGG Inc. is a designer and manufacturer of protective coverings and accessories for consumer electronics. The company is best known for its “invisibleSHIELD” line of screen protectors. Although earnings in the company’s upcoming report will face tough year-over-year comparisons, 2017 is shaping up to be a year of impressive EPS and sales growth for ZAGG Inc. Our current consensus estimates call for full-year earnings growth of 183% on sales growth of 17%. This earnings estimate has also seen four positive revisions over the past 60 days.
Extreme Networks is a developer of next-generation switching solutions that provide ISPs and content providers better performance at lower costs. In the upcoming report expected on May 3, the current Zacks Consensus Estimate calls for earnings of 5 cents per share—up from break-even figures in the year-ago quarter. We also expect to see revenue growth of 25% in the quarter. Extreme Networks has an impressive earnings history, beating the Zacks Consensus Estimate by an average of 104% in the trailing four quarters. For the full year, our consensus estimates call for EPS growth of 75% and revenue growth of 13%.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Bottom Line
A stock’s market price is certainly not the most important factor to consider when considering whether or not to add it to your portfolio, and sales and earnings growth projections can prove to be tough to live up to.
Nevertheless, we can always use Zacks’ proven methods of finding quality stocks, and these five companies just happen to be showing strength while also trading for under $10 per share. If you would like to check out more of these low-priced stocks, look no further than our Stocks Under $10 portfolio service!
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
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5 of the Best Stocks Under $10 for 2017
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 five stocks that are currently trading for under $10 per share. These stocks are also showing signs for solid growth throughout 2017, and all of them currently hold a Zacks Rank #1 (Strong Buy).
1. UTStarcom Holdings (UTSI - Free Report)
Prior Close: $2.03
UTStarcom is engaged in providing interactive protocol-based network solutions for cable and telecom operators. Based on our current consensus estimates, the Beijing-based company is poised to post quarterly EPS growth of 100% on May 12. UTStarcom has an impressive earnings surprise record, beating the Zacks Consensus Estimate by an average of 103% over the trailing four quarters, and it will hope that another beat can help continue its recent momentum that has seen the stock gain over 18% in the past 12 weeks. The company is also sporting a “B” grade for Value and an “A” grade for Growth.
2. PC-Tel, Inc.
Prior Close: $7.74
PC-Tel is a developer of wireless solutions, including LAN software products and software-defined receivers that optimize the performance of cellular and Wi-Fi networks. It’s shaping up to be a year of aggressive earnings growth for PC-Tel, and our current Zacks Consensus Estimate calls for EPS growth of 80% when the company reports on May 9. Overall, PC-Tel is expected to post EPS growth of 150% this fiscal year. Moreover, the stock has gained more than 13% over the past 12 weeks, and as it approaches its 52-week high, PC-Tel will hope another solid earnings report can help it break into a new range.
3. Papa Murphy’s Holdings (FRSH - Free Report)
Prior Close: $4.88
Papa Murphy’s Holdings operates as a franchisor and operator of the “Take 'N' Bake” pizza chain in the United States. The innovative pizza chain will face tough year-over-year EPS comparisons when its reports on May 10, but it’s still shaping up to be a solid fiscal year for the company. Our current consensus estimates call for earnings growth of 31% this year, and we also expect to see slight revenue growth, despite slumping sales across the retail restaurant industry. Furthermore, we have seen three positive estimate revisions for the company’s full-year earnings over the past 60 days. On top of all of this, the stock is sporting an “A” grade for Value.
4. ZAGG Inc.
Prior Close: $7.10
ZAGG Inc. is a designer and manufacturer of protective coverings and accessories for consumer electronics. The company is best known for its “invisibleSHIELD” line of screen protectors. Although earnings in the company’s upcoming report will face tough year-over-year comparisons, 2017 is shaping up to be a year of impressive EPS and sales growth for ZAGG Inc. Our current consensus estimates call for full-year earnings growth of 183% on sales growth of 17%. This earnings estimate has also seen four positive revisions over the past 60 days.
5. Extreme Networks, Inc. (EXTR - Free Report)
Prior Close: $7.82
Extreme Networks is a developer of next-generation switching solutions that provide ISPs and content providers better performance at lower costs. In the upcoming report expected on May 3, the current Zacks Consensus Estimate calls for earnings of 5 cents per share—up from break-even figures in the year-ago quarter. We also expect to see revenue growth of 25% in the quarter. Extreme Networks has an impressive earnings history, beating the Zacks Consensus Estimate by an average of 104% in the trailing four quarters. For the full year, our consensus estimates call for EPS growth of 75% and revenue growth of 13%.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Bottom Line
A stock’s market price is certainly not the most important factor to consider when considering whether or not to add it to your portfolio, and sales and earnings growth projections can prove to be tough to live up to.
Nevertheless, we can always use Zacks’ proven methods of finding quality stocks, and these five companies just happen to be showing strength while also trading for under $10 per share. If you would like to check out more of these low-priced stocks, look no further than our Stocks Under $10 portfolio service!
Looking for Ideas with Even Greater Upside?
Most of Zacks’ investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>