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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. We are also keenly aware of the latest sector trends and make sure to cover all of the hottest industries.
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. CounterPath Corporation
Prior Close: $4.15
CounterPath designs desktop and mobile application software, including voice over Internet protocol, unified communications, and fixed-mobile convergence solutions. The stock is currently a Zacks Rank #2 (Buy) and has soared more than 80% over the past four weeks.
Our consensus estimate for the company’s upcoming fiscal year earnings has risen by 13 cents within the last 30 days. The firm is now expected to be profitable and improve its EPS results by over 1,000% next year. CounterPath is also witnessing cash flow growth of 16%, and its P/S ratio of 2.00 comes at a significant discount to the “Computer – Software” industry average.
2. Xcerra Corporation
Prior Close: $10.00
Xcerra engages in designing, manufacturing, and marketing automatic test equipment for the semiconductor industry. On top of its Zacks Rank #2 (Buy), XCRA is sporting an “A” grade for Value in our Style Scores system, meaning that this low-priced stock could be giving investors a great bang for their buck right now.
Shares of Xcerra are trading at just 10.31 times earnings and 1.27 times sales, so it is clear that the revenue and profitability picture is solid. Meanwhile, the company’s full-year consensus earnings estimate has gained 27 cents over the past 60 days. Earnings are now expected to expand 98% this year. Still, with a PEG ratio of 0.86, investors are getting a good price for that earnings growth right now.
Sphere 3D is a software company offering professional visualization solutions via hybrid cloud, cloud, and on-premise implementations. Times have been tough for the company over the past year or so, but after four solid earnings beats, estimates have risen and the stock has earned a Zacks Rank #1 (Strong Buy).
Sphere 3D is in the red, but management has reported narrower-than-expected losses in four consecutive quarters. Meanwhile, revenues are expected to improve by over 15% in the upcoming year. ANY is trading at just a fraction of its total sales, so investors with an eye on rock-bottom P/S ratios may be interested right now. And if the firm can work towards profitability soon, shares could really take off.
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_McQueeneyon Twitter!
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
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. We are also keenly aware of the latest sector trends and make sure to cover all of the hottest industries.
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. CounterPath Corporation
Prior Close: $4.15
CounterPath designs desktop and mobile application software, including voice over Internet protocol, unified communications, and fixed-mobile convergence solutions. The stock is currently a Zacks Rank #2 (Buy) and has soared more than 80% over the past four weeks.
Our consensus estimate for the company’s upcoming fiscal year earnings has risen by 13 cents within the last 30 days. The firm is now expected to be profitable and improve its EPS results by over 1,000% next year. CounterPath is also witnessing cash flow growth of 16%, and its P/S ratio of 2.00 comes at a significant discount to the “Computer – Software” industry average.
2. Xcerra Corporation
Prior Close: $10.00
Xcerra engages in designing, manufacturing, and marketing automatic test equipment for the semiconductor industry. On top of its Zacks Rank #2 (Buy), XCRA is sporting an “A” grade for Value in our Style Scores system, meaning that this low-priced stock could be giving investors a great bang for their buck right now.
Shares of Xcerra are trading at just 10.31 times earnings and 1.27 times sales, so it is clear that the revenue and profitability picture is solid. Meanwhile, the company’s full-year consensus earnings estimate has gained 27 cents over the past 60 days. Earnings are now expected to expand 98% this year. Still, with a PEG ratio of 0.86, investors are getting a good price for that earnings growth right now.
3. Sphere 3D Corporation (ANY - Free Report)
Prior Close: $2.62
Sphere 3D is a software company offering professional visualization solutions via hybrid cloud, cloud, and on-premise implementations. Times have been tough for the company over the past year or so, but after four solid earnings beats, estimates have risen and the stock has earned a Zacks Rank #1 (Strong Buy).
Sphere 3D is in the red, but management has reported narrower-than-expected losses in four consecutive quarters. Meanwhile, revenues are expected to improve by over 15% in the upcoming year. ANY is trading at just a fraction of its total sales, so investors with an eye on rock-bottom P/S ratios may be interested right now. And if the firm can work towards profitability soon, shares could really take off.
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!
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>