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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 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.
Based in Japan, Mazda engages in the manufacture and sale of passenger cars, commercial vehicles and automotive parts. This is a company that will face tough year-over-year comparisons, but Mazda still has plenty to offer. For one, its P/E ratio of 8.07 is better than the foreign automotive industry average, and its P/S ratio and earnings yield figures are also looking strong. This means that Mazda is holding an impressive position in its industry, which is currently sitting in the top 8% of the Zacks Industry Rank. Furthermore, the stock has gained a nice 6% over the past month, meaning that investors could be getting in right at the start of a strong upward move.
FormFactor designs, develops, manufactures, sells and supports precision, high performance advanced semiconductor wafer probe cards. The company just smashed the Zacks Consensus Estimate for earnings by over 45%, extending its earnings beat streak to five straight quarters. As a result, estimates have been moving higher, and the stock looks poised to break higher. With “A” grades in our Value and Momentum categories, FORM should pique the interest of a variety of trend-focused investors. Furthermore, the company’s better-than-industry average P/E, P/S, and PEG ratios could imply that this stock is a rare low-price value pick.
Ichor Holdings is engaged in the design, engineering and manufacturing of critical fluid delivery subsystems for semiconductor capital equipment. Although Ichor missed earnings estimates in the most recent quarter, we’ve already seen positive revisions to its current-quarter, next-quarter, and next-year estimates in the wake of the report. On top of these revisions and its strong Zacks Rank, ICHR is also sporting “A” grades in all of our Style Scores categories. Earnings are expected to grow at a 75% rate this year, while sales are expected to improve by more than 50%. Also, Ichor boasts a strong P/E ratio of 7.54 and a P/S ratio of 0.70, both of which best their respective industry averages. Overall, this stock looks well-rounded and on the cusp of breaking higher.
Renault SA designs and manufacturers vehicles, primarily passenger cars, light commercial vehicles, electric vehicles, sports vehicles, and power train components. A quick glance at Renault’s Style Scores reveals a solid fundamental picture, especially in the Value and Growth categories. The company also offers a 3.06% dividend, so it could be also be attractive to income-minded investors. Consensus estimates are also calling for sales growth of 20% and EPS growth of 25% this year, and if the company can pull this off, the stock might break into new highs. Nevertheless, shares have dipped a bit over the past few weeks, so investors could be getting a discount right now.
Kemet and its subsidiaries make up one of the world’s largest manufacturers of solid tantalum capacitors and multilayer ceramic capacitors, the two fastest growing sectors of the U.S. capacitor industry. KEM recently posted earnings of 32 cents per share, smashing the Zacks Consensus Estimate of 18 cents by an impressive 78%. Kemet’s total revenues were up about 48% year-over-year, but due to a delay in the closing of a recent acquisition, these figures missed our consensus estimates. Still, the stock has soared since its report, and with a strong Zacks Rank and “A” grades for Value and VGM, it could be poised to move even higher soon.
Kronos Worldwide is a global producer and marketer of value-added titanium dioxide pigments. The stock tumbled after its recent miss, but it’s already made up a good chunk of those losses as its outlook for the future improves. We’ve seen a positive earnings estimate revision for the current and next quarter, as well as for the upcoming fiscal year. Kronos is looking to post aggressive earnings growth throughout the remainder of this fiscal year, and that should translate into more consistent growth as we move forward. Additionally, the stock is sporting an “A” grade for Momentum and an overall VGM grade of “B.”
7. Meritor, Inc.
Prior Close: $18.66
Meritor, formerly known as ArvinMeritor, Inc., supplies drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets. The stock has been soaring ever since it crushed earnings estimates by over 45% in the most recent quarter, and with positive revisions pouring in, it could break even higher. MTOR currently sports an “A” grade for Value, which is underscored by its impressive P/E ratio of 11.00 and its better-than-industry-average P/S ratio of 0.52. The stock is also repping “B” grade for Growth and Momentum, and its overall VGM grade of “A” would suggest that it’s fundamentally sound right now.
Range Resources acquires, develops, and finances oil and gas properties in the U.S. Given its industry, the stock will always be subject to the ebbs and flows of the energy industry, but Range Resources seeks to create value by targeting lower-risk development drilling and acquisitions. Despite a volatile oil market right now, Range Resources has surpassed our consensus earnings estimate by over 250% in each of the past two quarters, and now the company is expected to be profitable this year and next year. In fact, the company’s expected annual earnings growth rate over the next 3-5 years is 20%, so this could be an exciting growth pick for quite some time.
Subsea 7 S.A., formerly known as Acergy S.A., operates as an engineering, construction and services contractor to the offshore energy industry worldwide. First and foremost, Subsea 7 pays its investors a 4.09% dividend, so this is one of the few stocks on this list that could be really attractive to income-focused investors. Furthermore, the company crushed the Zacks Consensus Estimate for earnings in each of the past two quarters, and it will look to continue that streak in the current period. Interestingly, we expect solid revenue growth from Subsea 7 over the next few quarters too. On top of all of this, the stock has an “A” grade for Value and an overall VGM grade of “B” in our Style Scores system.
Voestalpine is engaged in the production, processing and distribution of steel products. The global steel industry has undergone a bit of a recovery over the past few months, and VLPNY’s recent price action highlights that fact. In fact, this stock has moved 15% higher over the past 12 weeks. This has helped the stock earn an “A” grade for Momentum, which pairs well with its “A” grade for Value. The company also pays a respectable 1.61% dividend. While the steel industry isn’t necessarily saved, Voestalpine gives investors an opportunity to take a chance on a low-priced stock that could benefit greatly from continued improvement in the space.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Top 10 Stocks Under $20
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. Mazda Motor Corp. (MZDAY - Free Report)
Prior Close: $7.42
Based in Japan, Mazda engages in the manufacture and sale of passenger cars, commercial vehicles and automotive parts. This is a company that will face tough year-over-year comparisons, but Mazda still has plenty to offer. For one, its P/E ratio of 8.07 is better than the foreign automotive industry average, and its P/S ratio and earnings yield figures are also looking strong. This means that Mazda is holding an impressive position in its industry, which is currently sitting in the top 8% of the Zacks Industry Rank. Furthermore, the stock has gained a nice 6% over the past month, meaning that investors could be getting in right at the start of a strong upward move.
2. FormFactor, Inc. (FORM - Free Report)
Prior Close: $13.30
FormFactor designs, develops, manufactures, sells and supports precision, high performance advanced semiconductor wafer probe cards. The company just smashed the Zacks Consensus Estimate for earnings by over 45%, extending its earnings beat streak to five straight quarters. As a result, estimates have been moving higher, and the stock looks poised to break higher. With “A” grades in our Value and Momentum categories, FORM should pique the interest of a variety of trend-focused investors. Furthermore, the company’s better-than-industry average P/E, P/S, and PEG ratios could imply that this stock is a rare low-price value pick.
3. Ichor Holdings (ICHR - Free Report)
Prior Close: $18.03
Ichor Holdings is engaged in the design, engineering and manufacturing of critical fluid delivery subsystems for semiconductor capital equipment. Although Ichor missed earnings estimates in the most recent quarter, we’ve already seen positive revisions to its current-quarter, next-quarter, and next-year estimates in the wake of the report. On top of these revisions and its strong Zacks Rank, ICHR is also sporting “A” grades in all of our Style Scores categories. Earnings are expected to grow at a 75% rate this year, while sales are expected to improve by more than 50%. Also, Ichor boasts a strong P/E ratio of 7.54 and a P/S ratio of 0.70, both of which best their respective industry averages. Overall, this stock looks well-rounded and on the cusp of breaking higher.
4. Renault SA (RNLSY - Free Report)
Prior Close: $17.64
Renault SA designs and manufacturers vehicles, primarily passenger cars, light commercial vehicles, electric vehicles, sports vehicles, and power train components. A quick glance at Renault’s Style Scores reveals a solid fundamental picture, especially in the Value and Growth categories. The company also offers a 3.06% dividend, so it could be also be attractive to income-minded investors. Consensus estimates are also calling for sales growth of 20% and EPS growth of 25% this year, and if the company can pull this off, the stock might break into new highs. Nevertheless, shares have dipped a bit over the past few weeks, so investors could be getting a discount right now.
5. Kemet Corporation (KEM - Free Report)
Prior Close: $18.72
Kemet and its subsidiaries make up one of the world’s largest manufacturers of solid tantalum capacitors and multilayer ceramic capacitors, the two fastest growing sectors of the U.S. capacitor industry. KEM recently posted earnings of 32 cents per share, smashing the Zacks Consensus Estimate of 18 cents by an impressive 78%. Kemet’s total revenues were up about 48% year-over-year, but due to a delay in the closing of a recent acquisition, these figures missed our consensus estimates. Still, the stock has soared since its report, and with a strong Zacks Rank and “A” grades for Value and VGM, it could be poised to move even higher soon.
6. Kronos Worldwide (KRO - Free Report)
Prior Close: $18.12
Kronos Worldwide is a global producer and marketer of value-added titanium dioxide pigments. The stock tumbled after its recent miss, but it’s already made up a good chunk of those losses as its outlook for the future improves. We’ve seen a positive earnings estimate revision for the current and next quarter, as well as for the upcoming fiscal year. Kronos is looking to post aggressive earnings growth throughout the remainder of this fiscal year, and that should translate into more consistent growth as we move forward. Additionally, the stock is sporting an “A” grade for Momentum and an overall VGM grade of “B.”
7. Meritor, Inc.
Prior Close: $18.66
Meritor, formerly known as ArvinMeritor, Inc., supplies drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets. The stock has been soaring ever since it crushed earnings estimates by over 45% in the most recent quarter, and with positive revisions pouring in, it could break even higher. MTOR currently sports an “A” grade for Value, which is underscored by its impressive P/E ratio of 11.00 and its better-than-industry-average P/S ratio of 0.52. The stock is also repping “B” grade for Growth and Momentum, and its overall VGM grade of “A” would suggest that it’s fundamentally sound right now.
8. Range Resources Corporation (RRC - Free Report)
Prior Close: $16.92
Range Resources acquires, develops, and finances oil and gas properties in the U.S. Given its industry, the stock will always be subject to the ebbs and flows of the energy industry, but Range Resources seeks to create value by targeting lower-risk development drilling and acquisitions. Despite a volatile oil market right now, Range Resources has surpassed our consensus earnings estimate by over 250% in each of the past two quarters, and now the company is expected to be profitable this year and next year. In fact, the company’s expected annual earnings growth rate over the next 3-5 years is 20%, so this could be an exciting growth pick for quite some time.
9. Subsea 7 SA (SUBCY - Free Report)
Prior Close: $14.25
Subsea 7 S.A., formerly known as Acergy S.A., operates as an engineering, construction and services contractor to the offshore energy industry worldwide. First and foremost, Subsea 7 pays its investors a 4.09% dividend, so this is one of the few stocks on this list that could be really attractive to income-focused investors. Furthermore, the company crushed the Zacks Consensus Estimate for earnings in each of the past two quarters, and it will look to continue that streak in the current period. Interestingly, we expect solid revenue growth from Subsea 7 over the next few quarters too. On top of all of this, the stock has an “A” grade for Value and an overall VGM grade of “B” in our Style Scores system.
10. Voestalpine AG (VLPNY - Free Report)
Prior Close: $10.00
Voestalpine is engaged in the production, processing and distribution of steel products. The global steel industry has undergone a bit of a recovery over the past few months, and VLPNY’s recent price action highlights that fact. In fact, this stock has moved 15% higher over the past 12 weeks. This has helped the stock earn an “A” grade for Momentum, which pairs well with its “A” grade for Value. The company also pays a respectable 1.61% dividend. While the steel industry isn’t necessarily saved, Voestalpine gives investors an opportunity to take a chance on a low-priced stock that could benefit greatly from continued improvement in the space.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think. See This Ticker Free >>