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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 #2 (Buy) or better, and the selected companies are showing signs of outpacing the market in the current calendar year.
Check out these five great stocks under $10 for 2018:
AudioCodes designs, develops and markets enabling technologies and communication components for the transmission of voice, fax and modem over packet networks. AUDC is a solid growth pick, with earnings expected to improve by 22% and revenue projected to expand by 9% this year. Meanwhile, the stock has a P/E of just 16.3, which is a discount compared to the average of our “Communication – Components” group. Its P/S ratio of 1.3 also helps show that investors are getting a great price on this stock. AUDC is currently sporting a Zacks Rank #2 (Buy).
Commercial Vehicle Group supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market. CVGI is holding a Zacks Rank #1 (Strong Buy) and looks undervalued at its current share price levels. The stock is trading with a P/E of just 6.1, which is a significant discount compared to its industry and the broader market. CVGI also has a P/S of 0.3 and a P/CF of 8.2—both of which support a value argument. And of course, it is worth noting that CVGI’s earnings are expected to grow by 200% in 2018.
Arbor Realty is a specialized real estate finance company focused on investments in real estate-related bridge and mezzanine loans, preferred equity, and mortgage-related securities. ABR has soared since crushing earnings estimates last month, and positive analyst sentiment in the wake of that report has earned the stock a Zacks Rank #1 (Strong Buy). Shares look undervalued at just 9.1x forward earnings, and since ABR operates as a REIT, investors get a solid income stream from the company. In fact, ABR is currently offering a dividend yield of 10.7%.
4. IEC Electronics Corp.
Prior Close: $5.57
IEC Electronics is a provider of electronic contract manufacturing services, including circuit cards, cable loads, and wire harness assemblies. The stock is another option with strong earnings momentum, beating estimates by more than 200% last month. It is also an incredible growth stock, with current estimates calling for adjusted profits to improve by quadruple digits this fiscal year. Still, IEC’s P/E of 11.4 and P/S of 0.5 imply that investors are getting a solid price for the stock, which is currently sporting a Zacks Rank #1 (Strong Buy).
Camtek is a developer of automatic optical inspection systems that are used to enhance both production processes and yield for manufacturers in the circuit board and semiconductor industries. CAMT has a Zacks Rank #2 (Buy) and is also an exciting growth pick, with EPS figures expected to improve by 81.5% in the current fiscal year and an additional 25.5% in 2019. Still, the stock is trading with a Forward P/E of just 17.3—so its valuation is hardly stretched considering its rapid expansion opportunities.
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.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X 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 #2 (Buy) or better, and the selected companies are showing signs of outpacing the market in the current calendar year.
Check out these five great stocks under $10 for 2018:
1. Audiocodes Ltd. (AUDC - Free Report)
Prior Close: $7.33
AudioCodes designs, develops and markets enabling technologies and communication components for the transmission of voice, fax and modem over packet networks. AUDC is a solid growth pick, with earnings expected to improve by 22% and revenue projected to expand by 9% this year. Meanwhile, the stock has a P/E of just 16.3, which is a discount compared to the average of our “Communication – Components” group. Its P/S ratio of 1.3 also helps show that investors are getting a great price on this stock. AUDC is currently sporting a Zacks Rank #2 (Buy).
2. Commercial Vehicle Group, Inc. (CVGI - Free Report)
Prior Close: $8.02
Commercial Vehicle Group supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market. CVGI is holding a Zacks Rank #1 (Strong Buy) and looks undervalued at its current share price levels. The stock is trading with a P/E of just 6.1, which is a significant discount compared to its industry and the broader market. CVGI also has a P/S of 0.3 and a P/CF of 8.2—both of which support a value argument. And of course, it is worth noting that CVGI’s earnings are expected to grow by 200% in 2018.
3. Arbor Realty Trust (ABR - Free Report)
Prior Close: $9.33
Arbor Realty is a specialized real estate finance company focused on investments in real estate-related bridge and mezzanine loans, preferred equity, and mortgage-related securities. ABR has soared since crushing earnings estimates last month, and positive analyst sentiment in the wake of that report has earned the stock a Zacks Rank #1 (Strong Buy). Shares look undervalued at just 9.1x forward earnings, and since ABR operates as a REIT, investors get a solid income stream from the company. In fact, ABR is currently offering a dividend yield of 10.7%.
4. IEC Electronics Corp.
Prior Close: $5.57
IEC Electronics is a provider of electronic contract manufacturing services, including circuit cards, cable loads, and wire harness assemblies. The stock is another option with strong earnings momentum, beating estimates by more than 200% last month. It is also an incredible growth stock, with current estimates calling for adjusted profits to improve by quadruple digits this fiscal year. Still, IEC’s P/E of 11.4 and P/S of 0.5 imply that investors are getting a solid price for the stock, which is currently sporting a Zacks Rank #1 (Strong Buy).
5. Camtek Ltd. (CAMT - Free Report)
Prior Close: $8.49
Camtek is a developer of automatic optical inspection systems that are used to enhance both production processes and yield for manufacturers in the circuit board and semiconductor industries. CAMT has a Zacks Rank #2 (Buy) and is also an exciting growth pick, with EPS figures expected to improve by 81.5% in the current fiscal year and an additional 25.5% in 2019. Still, the stock is trading with a Forward P/E of just 17.3—so its valuation is hardly stretched considering its rapid expansion opportunities.
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.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X 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>>