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Top 10 Stocks Under $20

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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.

1.       Cheetah Mobile (CMCM - Free Report)

Prior Close: $8.92

Cheetah Mobile engages in developing Internet security software, specifically mission critical applications for mobile operating systems. The company is a player in the relatively strong Chinese internet market, and its stock is looking strong in several key categories. For one, CMCM currently has a P/S ratio of 1.90, which implies that investors might be undervaluing its revenue stream. This is also expected to improve, with current consensus estimates indicating sales growth of 11.7% this year and 12.1% next year. Finally, the stock has a “B” grade for Momentum in our Style Scores system.

 

2.       IEC Electronics

Prior Close: $4.79

IEC Electronics is a provider of electronic contract manufacturing services, including the circuit cards, cable loads, and wire harness assemblies. The company is currently sitting near the top of an “Electronics - Miscellaneous Components” industry that is in the top 17% of the Zacks Industry Rank right now. IEC is also sporting a P/S ratio of just 0.51, which bests the industry average of 1.34. On top of this, the company is generating about $0.77 per share in cash and posting cash flow growth of nearly 92%, both of which smash the respective industry averages and work to show that IEC is improving its financial position.

 

3.       Xplore Technologies

Price Close: $3.51

Xplore Technologies is engaged in the business of developing integrating and marketing mobile wireless Tablet PC computing systems. The company has posted five-straight earnings estimate beats and has continued to be an interesting growth story. The stock has soared more than 70% year-to-date, and our current consensus estimates are calling for EPS growth of 121% and sales growth of 8%. XLPR is also sporting some better-than-industry-average valuation metrics, including a P/S ratio of 0.47 and a P/B ratio of 1.30. Finally, with a beta rating of 1.01, investors should expect about market average volatility from this stock.

 

4.       AeroCentury Corp.

Prior Close: $14.30

AeroCentury is an operating lessor and finance company which specializes in leasing used turboprop aircraft and engines. Interestingly, this stock has emerged as a strong value pick. ACY is actually sporting an “A” grade for Value in our Style Scores system and is currently repping a P/E ratio of just 7.82, as well as a P/S ratio of 0.65 and current cash flow to the tune of $7.39 per share. Also, based on our current consensus estimates, AeroCentury is expected to report EPS growth of 13.5% and sales growth of 14.5% this fiscal year, which helped the stock earn a “B” grade in our Growth category.

 

5.       Abercrombie & Fitch (ANF - Free Report)

Prior Close: $13.93

Abercrombie & Fitch is a specialty mall-based apparel retailer. The stock has not be immune to the retail glut, but shares have been on the rebound and have gained more than 40% in the past month. What’s more, ANF is currently sporting an overall VGM grade of “A,” which has been lifted by strong grades in the Value and Growth categories. In particular, we’ve noticed that the stock’s P/S ratio of 0.29 and P/B ratio of 0.82 could mean that it is currently undervalued. Finally, the company currently pays out an impressive 5.74% dividend.

 

6.       JA Solar Holdings

Prior Close: $8.19

JA Solar Holdings is a manufacturer of high-performance solar cells. The stock currently has an “A” grade for Value, which is supported by its P/E ratio of 13.46 and its P/S ratio of just 0.15. The company is also raking in about $4.78 in cash per share on the back of 4% cash flow growth. In addition, JASO has an “A” grade for Momentum, which is evidenced by its 43% share price growth over the past year. Overall, the company currently has a VGM grade of “A.” On top of this, JA Solar has surpassed earnings estimates by an average of over 700% in each of the trailing four quarters.

 

7.       PFSweb, Inc.

Prior Close: $8.06

PFSWeb is a provider of transaction management services for both traditional commerce and e-commerce companies. After posting two strong earnings beats in a row, PFSWeb has witnessed two positive revisions to its full-year estimates. Now, we expect to see the company record EPS growth of more than 363% this fiscal year. The stock also has “A” grades for Value, Growth, and Momentum, as well as an overall VGM grade of “A.” Moreover, with a beta rating of just 0.88, PFSWeb should hypothetically be less volatile than the market average, which is especially intriguing given its impressive growth prospects.

 

8.       Zumiez, Inc. (ZUMZ - Free Report)

Prior Close: $16.65

Zumiez is a specialty apparel retailer with a focus on clothes and shoes that fit skateboarding, surfing, and snowboarding lifestyles. After the company reported significantly narrower-than-expected losses in the most recent quarter, its share price—and EPS estimates—have been on the rise. Furthermore, the stock has an “A” grade for Value and currently sports a P/E ratio of just 16.34 and a P/S ratio of 0.49. Zumiez has also been able to grow its business, despite the retail glut. Based on our current consensus estimates, total sales are expected to expand by nearly 7% this year and another 3% next year.

 

9.       Craft Brew Alliance

Prior Close: $16.95

After a strong post-earnings surge, shares of Craft Brew Alliance have lost some of their momentum. Nevertheless, the company remains an exciting growth prospect in one of Wall Street’s hottest industries. Indeed, our “Beverages – Alcohol” group has gained more than 23% year-to-date and is currently in the top 8% of the Zacks Industry Rank. Furthermore, our current consensus estimates are calling for Craft Brew Alliance to post EPS growth of 350% this fiscal year. On top of all this, the stock has a beta rating of just 0.50, which means it’s hypothetically less volatile than the market average.

 

10.   Stoneridge, Inc. (SRI - Free Report)

Prior Close: $17.97

Stoneridge is an independent manufacturer of highly engineered electrical and electronic components for the automotive industries. The stock currently has an “A” grade for Value, which is underscored by its P/E ratio of 12.44, as well as its P/S ratio of 0.68 and its P/CF of 7.85. Furthermore, the company is currently growing its cash flow at a rate of 30%. And based on our current consensus estimates, we expect Stoneridge to expand its total revenues by an impressive 13.7% this year.

 

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