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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 throughout the remainder of the calendar year.
Check out these five great stocks under $10 for rest of 2018:
Good Times is a chain of fast-food restaurants known for their premium burgers and frozen custard. The company also owns the fast-casual Bad Daddy’s Burger Bar chain. It is primarily a regional play, with most locations operating in Colorado. GTIM is currently holding a Zacks Rank #1 (Strong Buy) and sports an “A” grade for Growth in our Style Scores system. Current estimates have EPS results improving 39% this year and 86% in the upcoming fiscal year. GTIM is also a low-priced momentum play after soaring more than 45% in six months.
2. On Deck Capital, Inc.
Prior Close: $7.25
On Deck Capital provides an online platform that uses big data and analytics to source, underwrite, and fund loans to small businesses. The firm provides capital to dentists, restaurants, medical practices, and online companies. This is another #1 (Strong Buy) with an “A” in the Growth category. Full-year earnings are expected to be 43 cents per share, up from just one penny per share last year. But the stock has a P/E of 16.7 and a P/S of 1.5, so investors can snag this growth at a reasonable valuation.
FGL is a holding company offering fixed annuities and life insurance products, forming after the merger of CF Corp. and Fidelity & Guaranty Life was completed late last year. The stock is sporting a Zacks Rank #2 (Buy) and looks like the right option for those searching for a low-priced value play. Shares are trading at just 7.8x forward earnings, which is a nice discount to the industry average. The stock pulled back a bit after its recent earnings bit, and now that’s appearing to be a buying opportunity as it levels out.
4. Denbury Resources Inc.
Prior Close: $6.05
Denbury Resources is a petroleum and natural gas E&P company. It is primarily focused on the Gulf Coast and Rocky Mountain regions. The outlook for E&Ps obviously looks better as oil prices continue to march higher, and that could help explain why analysts have been bullish on DNR lately. The stock has a Zacks Rank #2 (Buy) because of positive earnings estimate revisions. Analysts now expect the company to notch full-year earnings growth of 243%. The domestic energy firm also trades at an attractive valuation with its P/E of 12.5.
Magic Software is an Israeli enterprise software company that builds products to accelerate the process of deploying applications within existing systems. The stock is currently a Zacks Rank #2 (Buy) and sports an overall VGM grade of “A.” The company’s P/E ratio of 14.5 and P/S ratio of 1.1.6 are both better than the “Software” industry average and help show that shares could be undervalued right now. . MGIC is also an interesting growth pick, as our current consensus estimates are calling for EPS growth of 25% and sales growth of 12% this fiscal year.
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.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
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 throughout the remainder of the calendar year.
Check out these five great stocks under $10 for rest of 2018:
1. Good Times Restaurants Inc. (GTIM - Free Report)
Prior Close: $4.57
Good Times is a chain of fast-food restaurants known for their premium burgers and frozen custard. The company also owns the fast-casual Bad Daddy’s Burger Bar chain. It is primarily a regional play, with most locations operating in Colorado. GTIM is currently holding a Zacks Rank #1 (Strong Buy) and sports an “A” grade for Growth in our Style Scores system. Current estimates have EPS results improving 39% this year and 86% in the upcoming fiscal year. GTIM is also a low-priced momentum play after soaring more than 45% in six months.
2. On Deck Capital, Inc.
Prior Close: $7.25
On Deck Capital provides an online platform that uses big data and analytics to source, underwrite, and fund loans to small businesses. The firm provides capital to dentists, restaurants, medical practices, and online companies. This is another #1 (Strong Buy) with an “A” in the Growth category. Full-year earnings are expected to be 43 cents per share, up from just one penny per share last year. But the stock has a P/E of 16.7 and a P/S of 1.5, so investors can snag this growth at a reasonable valuation.
3. FGL Holdings (FG - Free Report)
Prior Close: $8.91
FGL is a holding company offering fixed annuities and life insurance products, forming after the merger of CF Corp. and Fidelity & Guaranty Life was completed late last year. The stock is sporting a Zacks Rank #2 (Buy) and looks like the right option for those searching for a low-priced value play. Shares are trading at just 7.8x forward earnings, which is a nice discount to the industry average. The stock pulled back a bit after its recent earnings bit, and now that’s appearing to be a buying opportunity as it levels out.
4. Denbury Resources Inc.
Prior Close: $6.05
Denbury Resources is a petroleum and natural gas E&P company. It is primarily focused on the Gulf Coast and Rocky Mountain regions. The outlook for E&Ps obviously looks better as oil prices continue to march higher, and that could help explain why analysts have been bullish on DNR lately. The stock has a Zacks Rank #2 (Buy) because of positive earnings estimate revisions. Analysts now expect the company to notch full-year earnings growth of 243%. The domestic energy firm also trades at an attractive valuation with its P/E of 12.5.
5. Magic Software Enterprises Ltd. (MGIC - Free Report)
Prior Close: $8.63
Magic Software is an Israeli enterprise software company that builds products to accelerate the process of deploying applications within existing systems. The stock is currently a Zacks Rank #2 (Buy) and sports an overall VGM grade of “A.” The company’s P/E ratio of 14.5 and P/S ratio of 1.1.6 are both better than the “Software” industry average and help show that shares could be undervalued right now. . MGIC is also an interesting growth pick, as our current consensus estimates are calling for EPS growth of 25% and sales growth of 12% this fiscal year.
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.
Best Electric Car Stock? You'll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it's not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.
See Zacks Best EV Stock Free >>