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The technology sector has had a remarkable run so far this year, outperforming all the major indices. The Technology Select Sector SPDR ETF (XLK - Free Report) has registered a return of 21.6% in the year-to-date period, significantly above the NASDAQ Composite (IXIC), S&P 500 (GSPC) and Dow Jones Industrial Average (DJI) gains of 19.9%, 12% and 13.4%, respectively.
The sector is benefiting from increasing demand for cloud-based platforms as well as growing adoption of Artificial Intelligence (AI) solutions. The future prospects of the technology sector look promising as it is positioned to gain from the improving U.S. economy, which is highlighted by an increase in gross domestic product (second estimate up 3%) for second-quarter 2017, a favorable job scenario (unemployment rate of 4.4% in August), income growth, heightened consumer confidence and momentum in the housing market.
Consequently, technology is a profitable area to put your money in, with high growth opportunity and good value options.
However, often it’s very hard to find a good deal in the technology sector. So, if you're looking to invest but don't have thousands to invest into the market, lower priced stocks can be good bets.
Investors generally get confused while investing and assume that a stock's price states how "cheap" or "expensive" the stock is. That being said, low-priced stocks can be attractive to smaller investors who 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.
The Winning Strategy
Using the Zacks Stock Screener and Style Score, we’ve highlighted three stocks that are currently trading under $20 per share.
All of these stocks currently have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Value Style Score of A or B. Notably, back-tested results show that this favorable combination handily outperform other stocks.
TIM Participações S.A. is a holding company, the single company in Brazil to offer mobile cellular service throughout the Brazilian territory, by means of its subsidiaries TIM Celular S.A. and TIM Nordeste S.A. The company sports a Zacks Rank #2. Additionally, the stock sports Value Score of A and a VGM Score of A.
The company has surpassed the Zacks Consensus Estimate by an average of 41.8% in the trailing three out of the four quarters.
Long-term expected EPS growth rate is currently pegged at 23.5%.
TIM Participações’ stock has gained 61.6% year to date, substantially outperforming the 9.7% rally of the industry it belongs to.
ZAGG Inc
Current Price: $14.50
ZAGG designs, manufactures and distributes protective clear coverings and accessories for consumer electronic and hand-held devices, worldwide.
The company carries a Zacks Rank #2. Moreover, ZAGG has a Value Score of B and a VGM Score of A. The company delivered an impressive positive earnings surprise of 20% in the last reported quarter.
Long-term expected EPS growth rate is currently pegged at 5%.
ZAGG’s stock has gained 104.2% year to date, substantially outperforming the 28.6% rally of the industry it belongs to.
Xcerra Corporation
Current Price: $9.79
Xcerra engages in designing, manufacturing, and marketing automatic test equipment for the semiconductor industry.
The company currently carries a Zacks Rank #2. Moreover, Xcerra has a Value Score of A and a VGM Score of A. The company has surpassed the Zacks Consensus Estimate by an average of 168.3% in the preceding four quarters.
Long-term expected EPS growth rate is currently pegged at 16%.
Xcerra’s stock has gained 28.1% year to date, outperforming the 24.7% rally of the industry it belongs to.
To Wrap Up
For smaller investors looking to get into solid stocks at lower prices, the abovementioned picks are good options to start with as these could yield impressive returns going forward.
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
3 Top-Ranked Technology Picks Under $20
The technology sector has had a remarkable run so far this year, outperforming all the major indices. The Technology Select Sector SPDR ETF (XLK - Free Report) has registered a return of 21.6% in the year-to-date period, significantly above the NASDAQ Composite (IXIC), S&P 500 (GSPC) and Dow Jones Industrial Average (DJI) gains of 19.9%, 12% and 13.4%, respectively.
The sector is benefiting from increasing demand for cloud-based platforms as well as growing adoption of Artificial Intelligence (AI) solutions. The future prospects of the technology sector look promising as it is positioned to gain from the improving U.S. economy, which is highlighted by an increase in gross domestic product (second estimate up 3%) for second-quarter 2017, a favorable job scenario (unemployment rate of 4.4% in August), income growth, heightened consumer confidence and momentum in the housing market.
Consequently, technology is a profitable area to put your money in, with high growth opportunity and good value options.
However, often it’s very hard to find a good deal in the technology sector. So, if you're looking to invest but don't have thousands to invest into the market, lower priced stocks can be good bets.
Investors generally get confused while investing and assume that a stock's price states how "cheap" or "expensive" the stock is. That being said, low-priced stocks can be attractive to smaller investors who 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.
The Winning Strategy
Using the Zacks Stock Screener and Style Score, we’ve highlighted three stocks that are currently trading under $20 per share.
All of these stocks currently have a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Value Style Score of A or B. Notably, back-tested results show that this favorable combination handily outperform other stocks.
You can see the complete list of today’s Zacks #1 Rank stocks here.
So let’s get into it!
TIM Participacoes S.A.
Current Price: $19.07
TIM Participações S.A. is a holding company, the single company in Brazil to offer mobile cellular service throughout the Brazilian territory, by means of its subsidiaries TIM Celular S.A. and TIM Nordeste S.A. The company sports a Zacks Rank #2. Additionally, the stock sports Value Score of A and a VGM Score of A.
The company has surpassed the Zacks Consensus Estimate by an average of 41.8% in the trailing three out of the four quarters.
Long-term expected EPS growth rate is currently pegged at 23.5%.
TIM Participações’ stock has gained 61.6% year to date, substantially outperforming the 9.7% rally of the industry it belongs to.
ZAGG Inc
Current Price: $14.50
ZAGG designs, manufactures and distributes protective clear coverings and accessories for consumer electronic and hand-held devices, worldwide.
The company carries a Zacks Rank #2. Moreover, ZAGG has a Value Score of B and a VGM Score of A. The company delivered an impressive positive earnings surprise of 20% in the last reported quarter.
Long-term expected EPS growth rate is currently pegged at 5%.
ZAGG’s stock has gained 104.2% year to date, substantially outperforming the 28.6% rally of the industry it belongs to.
Xcerra Corporation
Current Price: $9.79
Xcerra engages in designing, manufacturing, and marketing automatic test equipment for the semiconductor industry.
The company currently carries a Zacks Rank #2. Moreover, Xcerra has a Value Score of A and a VGM Score of A. The company has surpassed the Zacks Consensus Estimate by an average of 168.3% in the preceding four quarters.
Long-term expected EPS growth rate is currently pegged at 16%.
Xcerra’s stock has gained 28.1% year to date, outperforming the 24.7% rally of the industry it belongs to.
To Wrap Up
For smaller investors looking to get into solid stocks at lower prices, the abovementioned picks are good options to start with as these could yield impressive returns going forward.
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 >>