We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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 at least a Zacks Rank #2 (Buy), and a variety of other factors make these companies stand out as having strong upside potential.
BRT is a real estate investment trust focused on acquiring existing multifamily properties and ground up development of multifamily apartments. The company crushed earnings estimates in its most recent quarter, and as a result, positive revisions for its upcoming quarters have started coming in. The stock has also moved about 63% higher over the past year and currently sits near its 52-week high, so this could be an option for investors looking to ride that momentum. Also, its status as a REIT means it pays out a massive 5.15% dividend.
2. CVR Refining LP
Prior Close: $17.45
CVR Refining is an independent MLP that operates crude oil transportation and storage facilities, along with a vast network of pipelines. The stock is currently sporting “A” grades for Value and Growth. With a P/E of 10.39 and a P/S of 0.48, CVRR is looking significantly undervalued in comparison to its industry peers. As an MLP, it returns most of its profits to shareholders and pays a whopping 21.55% dividend. Shares have surged nearly 54% over the past 12 weeks and have begun testing new 52-week highs, so this could be another stock for momentum investors to keep an eye on.
Commercial Vehicle Group is a provider of interior and vision safety systems for the global commercial vehicle industry. The stock is trading at just 10x earnings and 0.54x sales, but shares have also surged more than 140% over the past year, so these enticing valuation metrics are hardly coming at a moment of weakness. Meanwhile, earnings are expected to improve by nearly 60% in the current year and then a further 165% in the upcoming fiscal year. Overall, the stock is sporting an “A” in the VGM category of our Style Scores system.
Rocky Brands is a leading footwear and apparel maker, and its portfolio includes brands such as Durango, Lehigh, Dickies, and Georgia Boot. After crushing earnings estimates by more than 34% in the most recent quarter, Rocky Brands witnessed positive forward-looking revision activity. Still, the stock is trading at just 16x forward earnings. It is also worth noting that RCKY has a beta rating of 0.70, so it should hypothetically be less volatile than the market average—a feature that not many low-priced stocks can flaunt.
5. Cloud Peak Energy, Inc.
Prior Close: $5.24
Cloud Peak Energy operates as a producer of low sulfur, high quality, sub-bituminous coal in the United States, currently maintaining three surface coal mines in the Powder River Basin. This small-cap energy stock is most likely going to be a momentum play for most. Shares have popped more than 23% in the past 12 weeks, including 16% in the last four weeks alone. Luckily, with the company’s positive earnings estimate revision activity, investors should have no hesitation over breaking this stock into a new range.
6. Keane Group, Inc.
Prior Close: $17.80
Keane Group is a provider of integrated well completion services, focusing on horizontal and vertical fracturing, wireline perforation, and logging and engineered solutions. After posting a significant loss last fiscal year, FRAC is back in the black and looking for earnings to skyrocket soon. Current consensus estimates are calling for profits to expand by quadruple-digit percentages in the upcoming fiscal year. Meanwhile, the stock is trading at just 14x forward earnings, so it seems that the market has not caught up to this improved earnings picture.
Sally Beauty is an international specialty retailer and distributor of professional beauty products. The company operates Sally Beauty, CosmoProf, and Armstrong McCall stores. The company actually missed estimates in its latest quarter, but a solid outlook inspired positive revisions to its current and next fiscal year earnings estimates. Nevertheless, the stock is trading below 9x forward earnings, so investors have plenty of room to benefit from this improved profit outlook. Meanwhile, shares have popped about 15% over the past two months, indicating that SBH does want to move higher.
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. Kemet is set to report earnings next week, and our Earnings ESP indicator is currently signaling that a beat is likely. We also expect the company to report EPS growth of more than 200% and sales growth of about 57% for the quarter.
9. Harsco Corporation
Prior Close: $18.50
Harsco is a services and engineered products company. The firm provides mill services to metal producers, gas control products, railway maintenance services, and scaffolding services, among other things. Harsco has garnered serious earnings momentum after beating estimates by an average of 145% in each of the trailing four quarters. Current estimates are now calling for EPS growth of 42% this fiscal year and 32% next fiscal year. Meanwhile, the stock has a P/S ratio of just 0.98, so investors are also getting a decent price for the company’s revenue picture.
Donegal Group is a regional property-casualty insurance holding company doing business in Mid-Atlantic and Southern states. First up, our current consensus estimates are calling for earnings to expand by nearly 122% in the upcoming fiscal year. But the company is also growing its cash glow at a rate of 11%. Donegal is doing well with that improved balance sheet and currently offers investors a dividend of 3.21%.
Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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 at least a Zacks Rank #2 (Buy), and a variety of other factors make these companies stand out as having strong upside potential.
1. BRT Apartments Corp. (BRT - Free Report)
Prior Close: $13.99
BRT is a real estate investment trust focused on acquiring existing multifamily properties and ground up development of multifamily apartments. The company crushed earnings estimates in its most recent quarter, and as a result, positive revisions for its upcoming quarters have started coming in. The stock has also moved about 63% higher over the past year and currently sits near its 52-week high, so this could be an option for investors looking to ride that momentum. Also, its status as a REIT means it pays out a massive 5.15% dividend.
2. CVR Refining LP
Prior Close: $17.45
CVR Refining is an independent MLP that operates crude oil transportation and storage facilities, along with a vast network of pipelines. The stock is currently sporting “A” grades for Value and Growth. With a P/E of 10.39 and a P/S of 0.48, CVRR is looking significantly undervalued in comparison to its industry peers. As an MLP, it returns most of its profits to shareholders and pays a whopping 21.55% dividend. Shares have surged nearly 54% over the past 12 weeks and have begun testing new 52-week highs, so this could be another stock for momentum investors to keep an eye on.
3. Commercial Vehicle Group, Inc. (CVGI - Free Report)
Prior Close: $12.64
Commercial Vehicle Group is a provider of interior and vision safety systems for the global commercial vehicle industry. The stock is trading at just 10x earnings and 0.54x sales, but shares have also surged more than 140% over the past year, so these enticing valuation metrics are hardly coming at a moment of weakness. Meanwhile, earnings are expected to improve by nearly 60% in the current year and then a further 165% in the upcoming fiscal year. Overall, the stock is sporting an “A” in the VGM category of our Style Scores system.
4. Rocky Brands, Inc. (RCKY - Free Report)
Prior Close: $18.85
Rocky Brands is a leading footwear and apparel maker, and its portfolio includes brands such as Durango, Lehigh, Dickies, and Georgia Boot. After crushing earnings estimates by more than 34% in the most recent quarter, Rocky Brands witnessed positive forward-looking revision activity. Still, the stock is trading at just 16x forward earnings. It is also worth noting that RCKY has a beta rating of 0.70, so it should hypothetically be less volatile than the market average—a feature that not many low-priced stocks can flaunt.
5. Cloud Peak Energy, Inc.
Prior Close: $5.24
Cloud Peak Energy operates as a producer of low sulfur, high quality, sub-bituminous coal in the United States, currently maintaining three surface coal mines in the Powder River Basin. This small-cap energy stock is most likely going to be a momentum play for most. Shares have popped more than 23% in the past 12 weeks, including 16% in the last four weeks alone. Luckily, with the company’s positive earnings estimate revision activity, investors should have no hesitation over breaking this stock into a new range.
6. Keane Group, Inc.
Prior Close: $17.80
Keane Group is a provider of integrated well completion services, focusing on horizontal and vertical fracturing, wireline perforation, and logging and engineered solutions. After posting a significant loss last fiscal year, FRAC is back in the black and looking for earnings to skyrocket soon. Current consensus estimates are calling for profits to expand by quadruple-digit percentages in the upcoming fiscal year. Meanwhile, the stock is trading at just 14x forward earnings, so it seems that the market has not caught up to this improved earnings picture.
7. Sally Beauty Holdings, Inc. (SBH - Free Report)
Prior Close: $17.48
Sally Beauty is an international specialty retailer and distributor of professional beauty products. The company operates Sally Beauty, CosmoProf, and Armstrong McCall stores. The company actually missed estimates in its latest quarter, but a solid outlook inspired positive revisions to its current and next fiscal year earnings estimates. Nevertheless, the stock is trading below 9x forward earnings, so investors have plenty of room to benefit from this improved profit outlook. Meanwhile, shares have popped about 15% over the past two months, indicating that SBH does want to move higher.
8. Kemet Corporation (KEM - Free Report)
Prior Close: $19.42
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. Kemet is set to report earnings next week, and our Earnings ESP indicator is currently signaling that a beat is likely. We also expect the company to report EPS growth of more than 200% and sales growth of about 57% for the quarter.
9. Harsco Corporation
Prior Close: $18.50
Harsco is a services and engineered products company. The firm provides mill services to metal producers, gas control products, railway maintenance services, and scaffolding services, among other things. Harsco has garnered serious earnings momentum after beating estimates by an average of 145% in each of the trailing four quarters. Current estimates are now calling for EPS growth of 42% this fiscal year and 32% next fiscal year. Meanwhile, the stock has a P/S ratio of just 0.98, so investors are also getting a decent price for the company’s revenue picture.
10. Donegal Group, Inc. (DGICA - Free Report)
Prior Close: $17.44
Donegal Group is a regional property-casualty insurance holding company doing business in Mid-Atlantic and Southern states. First up, our current consensus estimates are calling for earnings to expand by nearly 122% in the upcoming fiscal year. But the company is also growing its cash glow at a rate of 11%. Donegal is doing well with that improved balance sheet and currently offers investors a dividend of 3.21%.
Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>