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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 three stocks that fall into the broad “technology sector.” Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #2 (Buy) or better. Take a look at the strong estimate revision activity and other factors that make these companies stick out right now:
Daktronics is a leading manufacturer of electronic scoreboards, computer-programmable displays, and large screen video displays. The stock is currently sporting a Zacks Rank #2 (Buy), as well as “A” grades in each and every category in our Style Scores system. We expect Daktronics to report EPS growth of over 60% this fiscal year, and its “Electronics - Miscellaneous Products” industry is currently sitting in the top 19% of our Zacks Industry Rank. On top of this, the company pays out a respectably 2.91% dividend.
2. Fitbit, Inc.
Prior Close: $5.89
Fitbit manufactures and markets wearable fitness-tracking devices. Although the company’s growth has been slowed by massive competition in the wearables space, management has been proactive recently. The company just introduced its first smartwatch, the Ionic, and it has undergone significant executive shakeup and cost structuring recently. The stock is currently holding a Zacks Rank #2 (Buy) and a “B” grade for Momentum, and the company’s “Electronics - Measuring Instruments” industry is currently in the top 14% of the Zacks Industry Rank.
Cheetah Mobile engages in developing Internet security software, specifically mission critical applications for mobile operating systems. The stock is currently a Zacks Rank #1 (Strong Buy) and belongs to the “Internet – Software” industry that is currently sitting in the top 36% of the Zacks Industry Rank. Our current consensus estimate is calling for sales growth of nearly 12% this year, and the company is operating in a relatively strong Chinese internet market. On top of this, the stock is sporting an “A” grade for Momentum.
Bottom Line
A stock’s market price is not a clear indicator of whether it is a good investment. However, the nice thing about the Zacks Rank is that it can be applied to stocks of any price. For smaller investors looking to find solid tech stocks at lower prices, this list is a great place to start.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month. Learn the secret >>
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3 Tech Stocks Under $10 to Buy Now
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 three stocks that fall into the broad “technology sector.” Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #2 (Buy) or better. Take a look at the strong estimate revision activity and other factors that make these companies stick out right now:
1. Daktronics, Inc. (DAKT - Free Report)
Prior Close: $9.58
Daktronics is a leading manufacturer of electronic scoreboards, computer-programmable displays, and large screen video displays. The stock is currently sporting a Zacks Rank #2 (Buy), as well as “A” grades in each and every category in our Style Scores system. We expect Daktronics to report EPS growth of over 60% this fiscal year, and its “Electronics - Miscellaneous Products” industry is currently sitting in the top 19% of our Zacks Industry Rank. On top of this, the company pays out a respectably 2.91% dividend.
2. Fitbit, Inc.
Prior Close: $5.89
Fitbit manufactures and markets wearable fitness-tracking devices. Although the company’s growth has been slowed by massive competition in the wearables space, management has been proactive recently. The company just introduced its first smartwatch, the Ionic, and it has undergone significant executive shakeup and cost structuring recently. The stock is currently holding a Zacks Rank #2 (Buy) and a “B” grade for Momentum, and the company’s “Electronics - Measuring Instruments” industry is currently in the top 14% of the Zacks Industry Rank.
3. Cheetah Mobile Inc. (CMCM - Free Report)
Prior Close: $9.23
Cheetah Mobile engages in developing Internet security software, specifically mission critical applications for mobile operating systems. The stock is currently a Zacks Rank #1 (Strong Buy) and belongs to the “Internet – Software” industry that is currently sitting in the top 36% of the Zacks Industry Rank. Our current consensus estimate is calling for sales growth of nearly 12% this year, and the company is operating in a relatively strong Chinese internet market. On top of this, the stock is sporting an “A” grade for Momentum.
Bottom Line
A stock’s market price is not a clear indicator of whether it is a good investment. However, the nice thing about the Zacks Rank is that it can be applied to stocks of any price. For smaller investors looking to find solid tech stocks at lower prices, this list is a great place to start.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month. Learn the secret >>