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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 shares. 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 five stocks that are currently trading for under $10 per share. All of these stocks currently sport a Zacks Rank #1 (Strong Buy), and the selected companies are showing signs of outpacing the market in the upcoming calendar year.
Check out these five great stocks under $10 for 2018:
LightPath provides optics and photonics solutions for the industrial, defense, telecommunications, testing and measurement, and medical industries. The company has an inconsistent earnings picture, but for a micro-cap firm, its revenue stream is solid. In fact, consensus estimates are calling for full-year sales to expand by 28% this year and a further 9% next year. The stock is trading with a P/S of just 1.77, so investors are getting a good price for that revenue. Meanwhile, LPTH is also holding an “A” grade for Growth in our Style Scores system.
Sunrun is a leading developer of residential solar energy systems, operating through both its direct-to-consumer and partner-focused channels. The company and its competitors were dragged down by concerns that a Trump Administration tariff would hurt installers, but the recently-implemented tax was actually not as damaging as many expected. Earnings estimates have been trending significantly higher recently, and revenue estimates are calling for 27% growth in 2018. Still, the stock is trading at just over 5x earnings and 1.24x sales.
GeoPark is an explorer, operator, and consolidator of oil and gas. The company operates primarily in Chile, Colombia, Brazil and Argentina. Earnings estimates for both the current and upcoming fiscal year have trended higher over the last week. GeoPark is now expected to be in the black in each period, with current estimates calling for triple-digit EPS growth to boot. Meanwhile, the stock is sporting an overall “A” grade in our Style Scores system. Shares are trading at about 10x earnings, and management is generating cash flow growth of nearly 27%.
4. SRC Energy Inc.
Prior Close: $9.29
SRC Energy is an oil and natural gas exploration and production company. It engages in the acquisition and development of oil and natural gas properties, primarily located in Colorado. Shares are trading at just 9x earnings, despite the stock’s 7% climb over the past 12 weeks. Management is currently generating cash flow growth of over 50%, while earnings are projected to expand by nearly 51% and sales are expected to soar by 73%. SRC is also on top of an industry that is currently sitting in the top 26% of the Zacks Industry Rank.
Smart Sand is a producer of northern white raw frac sand for the oil and gas industry. It offers proppant and related logistics services for oil and gas recovery from unconventional wells. Earnings estimates for the current and upcoming fiscal years have been trending higher over the last 60 days, and now EPS growth is expected to be well over 100% in 2018. Revenues are also projected to soar nearly 74% this year. Still, the stock is sporting a “B” grade for Value in our Style Scores system, and its P/E of 8.56 and P/S of 2.87 highlight a decent buying opportunity for value investors.
Bottom Line
A stock’s market price is certainly not the most important factor to consider when considering whether or not to add it to your portfolio, and sales and earnings growth projections can prove to be tough to live up to.
Nevertheless, we can always use Zacks’ proven methods of finding quality stocks, and these five companies just happen to be showing strength while also trading for under $10 per share.
Want more analysis from this author? Make sure to follow @Ryan_McQueeneyon 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
5 of the Best Stocks Under $10 for 2018
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 shares. 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 five stocks that are currently trading for under $10 per share. All of these stocks currently sport a Zacks Rank #1 (Strong Buy), and the selected companies are showing signs of outpacing the market in the upcoming calendar year.
Check out these five great stocks under $10 for 2018:
1. LightPath Technologies, Inc. (LPTH - Free Report)
Prior Close: $2.22
LightPath provides optics and photonics solutions for the industrial, defense, telecommunications, testing and measurement, and medical industries. The company has an inconsistent earnings picture, but for a micro-cap firm, its revenue stream is solid. In fact, consensus estimates are calling for full-year sales to expand by 28% this year and a further 9% next year. The stock is trading with a P/S of just 1.77, so investors are getting a good price for that revenue. Meanwhile, LPTH is also holding an “A” grade for Growth in our Style Scores system.
2. Sunrun Inc. (RUN - Free Report)
Prior Close: $5.82
Sunrun is a leading developer of residential solar energy systems, operating through both its direct-to-consumer and partner-focused channels. The company and its competitors were dragged down by concerns that a Trump Administration tariff would hurt installers, but the recently-implemented tax was actually not as damaging as many expected. Earnings estimates have been trending significantly higher recently, and revenue estimates are calling for 27% growth in 2018. Still, the stock is trading at just over 5x earnings and 1.24x sales.
3. GeoPark Ltd. (GPRK - Free Report)
Prior Close: $9.93
GeoPark is an explorer, operator, and consolidator of oil and gas. The company operates primarily in Chile, Colombia, Brazil and Argentina. Earnings estimates for both the current and upcoming fiscal year have trended higher over the last week. GeoPark is now expected to be in the black in each period, with current estimates calling for triple-digit EPS growth to boot. Meanwhile, the stock is sporting an overall “A” grade in our Style Scores system. Shares are trading at about 10x earnings, and management is generating cash flow growth of nearly 27%.
4. SRC Energy Inc.
Prior Close: $9.29
SRC Energy is an oil and natural gas exploration and production company. It engages in the acquisition and development of oil and natural gas properties, primarily located in Colorado. Shares are trading at just 9x earnings, despite the stock’s 7% climb over the past 12 weeks. Management is currently generating cash flow growth of over 50%, while earnings are projected to expand by nearly 51% and sales are expected to soar by 73%. SRC is also on top of an industry that is currently sitting in the top 26% of the Zacks Industry Rank.
5. Smart Sand, Inc. (SND - Free Report)
Prior Close: $8.77
Smart Sand is a producer of northern white raw frac sand for the oil and gas industry. It offers proppant and related logistics services for oil and gas recovery from unconventional wells. Earnings estimates for the current and upcoming fiscal years have been trending higher over the last 60 days, and now EPS growth is expected to be well over 100% in 2018. Revenues are also projected to soar nearly 74% this year. Still, the stock is sporting a “B” grade for Value in our Style Scores system, and its P/E of 8.56 and P/S of 2.87 highlight a decent buying opportunity for value investors.
Bottom Line
A stock’s market price is certainly not the most important factor to consider when considering whether or not to add it to your portfolio, and sales and earnings growth projections can prove to be tough to live up to.
Nevertheless, we can always use Zacks’ proven methods of finding quality stocks, and these five companies just happen to be showing strength while also trading for under $10 per share.
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>>