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Stocks have struggled to find a bottom amid market-wide selling over the past few weeks, and that presents a certain amount of risk to investors right now. But those willing to meet that risk have watched valuations shrink and per-share price tags diminish, which could mean new buying opportunities for those with specific strategies.
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. These stocks currently have seen positive earnings estimate revisions, and a variety of other factors make these companies stand out as having strong upside potential.
Cleveland-Cliffs is an iron ore mining company and key supplier of iron ore pellets to the steel industry. The firm’s CEO recently made negative headlines for lashing out at analysts, but that doesn’t necessarily change the fundamentals here. CLF sports a Zacks Rank #2 (Buy) and “A” grades in both our Value and Growth categories. Earnings are expected to improve a whopping 248% this year, but investors are undervaluing the stock at just 7.4x forward 12-month earnings.
2. AVX Corporation
Prior Close: $15.39
AVX is a global supplier of electronic components, primarily capacitors and connectors used in the automotive, mobile phone, and medical industries. The firm is majority owned by Kyocera and is a member of the Russell 2000. AVX holds a #1 (Strong Buy) coming off its impressive earnings beat, and growth prospects now look better than ever. In fact, earnings are projected to expand by 59% and 79% in the next two quarters. Plus, with a P/E of 10.7 and a P/S of 1.5, AVX looks to be reasonably priced.
Nikon is one of the most recognizable names in the world of cameras, camera lenses, and other optical instruments. NINOY holds a Zacks Rank #1 (Strong Buy) and sports interesting growth and momentum characteristics. For instance, the company is expected to see EPS growth of nearly 66% this year and 22% on a long-term, annualized basis. The stock had added about 23% in the three months prior to market-wide selling, so look for a rebound to match that pace as its earnings outlook continues to improve.
Tilly’s is a specialty retailer popular among skateboarders and surfers, as well as trendy young fashion purveyors who love “streetwear” brands. Shopping at Tilly’s would yield everything from legacy apparel makers like The North Face and Adidas to forward-thinking brands such as LRG and Primitive. TLYS is expected to notch long-term earnings growth of 10%. Even with recent volatility, shares are up 60% in the past six months and still looking affordable at 19.5x earnings and with a P/S of 0.9.
5. Hewlett Packard Enterprise Company (HPE - Free Report)
Prior Close: $14.56
Hewlett Packard Enterprise is an integrated systems company focused on enterprise offerings like IT solutions, servers, and cloud-based products. The split of the old HP Company looks to have been a positive for the enterprise side of the business, and now might be a good time for investors to jump on board. Notably, HPE holds an “A” grade in the Value category of our Style Score system. The stock has a P/E or 9.5 and a PEG of 0.9, both of which mark discounts to its industry average. Moreover, HPE presents a dividend yield of about 3%.
6. Armstrong Flooring, Inc.
Prior Close: $14.77
Armstrong Flooring is engaged in the design and manufacture of flooring solutions. It was incorporated in 2016 after a spin-off from construction supplier Armstrong World Industries. Right now, the stock has a Zacks Rank #2 (Buy), as well as a “A” grades in all of our Style Score categories. Shares skyrocketed after the company’s most recent earnings report, but this stock has room to surge higher on the back of 105% projected EPS growth. AFI also has a PEG of 1.6, so investors are getting a great price for that growth outlook.
CNX Resources is one of the largest independent natural gas exploration and production companies. It operates primarily in the major shale formations of the Appalachian basin. CNX is sporting a Zacks Rank #2 (Buy) and is projected to see earnings growth of 227% in the current quarter and 663% in the current year. The stock also has an overall VGM grade of “A” and trades at just 14.7x forward earnings. CNX’s P/S ratio is a reasonable 1.4 right now.
Ericsson is a world-leading supplier in the telecommunications and data communications industries, offering advanced solutions for mobile and fixed networks, as well as consumer products. ERIC is a #1 (Strong Buy)-ranked stock coming off a strong earnings report just a few weeks ago. Volatility dampened the mood after the report, but this stock still has an “A” grade for Growth and has proven that it wants to trade at a higher level than this. Earnings estimate revisions are now moving in, so we should watch to see if a better outlook lifts this stock again.
Marathon is a leading exploration and production company with extensive operations around the world. The company has over 2 billion barrels of estimated proved reserves and produces over 400,000 barrels of equivalent per day. Higher oil prices have shown to be a huge earnings growth catalyst for the industry this report season, and now MRO is set to announce next week. Estimates have quarterly profits at the company improving 350% year over year. Looking ahead, Marathon gets you a long-term EPS growth rate of nearly 16% at a current PEG of just 1.5.
Under Armour is a major performance and sports apparel maker and retailer. It makes clothes and footwear for running, basketball, training, and much more. UAA just this week doubled up earnings estimates and has put together quite a nice recovery year. Shares gapped about 25% higher on earnings positivity, adding to the stock’s existing year-to-date gains of 20%. Investors want to catch this hot #2 (Buy) momentum stock before what should be a strong holiday quarter.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Top 10 Stocks Under $20
Stocks have struggled to find a bottom amid market-wide selling over the past few weeks, and that presents a certain amount of risk to investors right now. But those willing to meet that risk have watched valuations shrink and per-share price tags diminish, which could mean new buying opportunities for those with specific strategies.
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. These stocks currently have seen positive earnings estimate revisions, and a variety of other factors make these companies stand out as having strong upside potential.
1. Cleveland-Cliffs Inc. (CLF - Free Report)
Prior Close: $10.08
Cleveland-Cliffs is an iron ore mining company and key supplier of iron ore pellets to the steel industry. The firm’s CEO recently made negative headlines for lashing out at analysts, but that doesn’t necessarily change the fundamentals here. CLF sports a Zacks Rank #2 (Buy) and “A” grades in both our Value and Growth categories. Earnings are expected to improve a whopping 248% this year, but investors are undervaluing the stock at just 7.4x forward 12-month earnings.
2. AVX Corporation
Prior Close: $15.39
AVX is a global supplier of electronic components, primarily capacitors and connectors used in the automotive, mobile phone, and medical industries. The firm is majority owned by Kyocera and is a member of the Russell 2000. AVX holds a #1 (Strong Buy) coming off its impressive earnings beat, and growth prospects now look better than ever. In fact, earnings are projected to expand by 59% and 79% in the next two quarters. Plus, with a P/E of 10.7 and a P/S of 1.5, AVX looks to be reasonably priced.
3. Nikon Corp. (NINOY - Free Report)
Prior Close: $16.48
Nikon is one of the most recognizable names in the world of cameras, camera lenses, and other optical instruments. NINOY holds a Zacks Rank #1 (Strong Buy) and sports interesting growth and momentum characteristics. For instance, the company is expected to see EPS growth of nearly 66% this year and 22% on a long-term, annualized basis. The stock had added about 23% in the three months prior to market-wide selling, so look for a rebound to match that pace as its earnings outlook continues to improve.
4. Tilly’s, Inc. (TLYS - Free Report)
Prior Close: $17.59
Tilly’s is a specialty retailer popular among skateboarders and surfers, as well as trendy young fashion purveyors who love “streetwear” brands. Shopping at Tilly’s would yield everything from legacy apparel makers like The North Face and Adidas to forward-thinking brands such as LRG and Primitive. TLYS is expected to notch long-term earnings growth of 10%. Even with recent volatility, shares are up 60% in the past six months and still looking affordable at 19.5x earnings and with a P/S of 0.9.
5. Hewlett Packard Enterprise Company (HPE - Free Report)
Prior Close: $14.56
Hewlett Packard Enterprise is an integrated systems company focused on enterprise offerings like IT solutions, servers, and cloud-based products. The split of the old HP Company looks to have been a positive for the enterprise side of the business, and now might be a good time for investors to jump on board. Notably, HPE holds an “A” grade in the Value category of our Style Score system. The stock has a P/E or 9.5 and a PEG of 0.9, both of which mark discounts to its industry average. Moreover, HPE presents a dividend yield of about 3%.
6. Armstrong Flooring, Inc.
Prior Close: $14.77
Armstrong Flooring is engaged in the design and manufacture of flooring solutions. It was incorporated in 2016 after a spin-off from construction supplier Armstrong World Industries. Right now, the stock has a Zacks Rank #2 (Buy), as well as a “A” grades in all of our Style Score categories. Shares skyrocketed after the company’s most recent earnings report, but this stock has room to surge higher on the back of 105% projected EPS growth. AFI also has a PEG of 1.6, so investors are getting a great price for that growth outlook.
7. CNX Resources Corporation (CNX - Free Report)
Prior Close: $13.31
CNX Resources is one of the largest independent natural gas exploration and production companies. It operates primarily in the major shale formations of the Appalachian basin. CNX is sporting a Zacks Rank #2 (Buy) and is projected to see earnings growth of 227% in the current quarter and 663% in the current year. The stock also has an overall VGM grade of “A” and trades at just 14.7x forward earnings. CNX’s P/S ratio is a reasonable 1.4 right now.
8. Ericsson (ERIC - Free Report)
Prior Close: $8.55
Ericsson is a world-leading supplier in the telecommunications and data communications industries, offering advanced solutions for mobile and fixed networks, as well as consumer products. ERIC is a #1 (Strong Buy)-ranked stock coming off a strong earnings report just a few weeks ago. Volatility dampened the mood after the report, but this stock still has an “A” grade for Growth and has proven that it wants to trade at a higher level than this. Earnings estimate revisions are now moving in, so we should watch to see if a better outlook lifts this stock again.
9. Marathon Oil Corporation (MRO - Free Report)
Prior Close: $18.15
Marathon is a leading exploration and production company with extensive operations around the world. The company has over 2 billion barrels of estimated proved reserves and produces over 400,000 barrels of equivalent per day. Higher oil prices have shown to be a huge earnings growth catalyst for the industry this report season, and now MRO is set to announce next week. Estimates have quarterly profits at the company improving 350% year over year. Looking ahead, Marathon gets you a long-term EPS growth rate of nearly 16% at a current PEG of just 1.5.
10. Under Armour, Inc. (UAA - Free Report)
Prior Close: $18.19
Under Armour is a major performance and sports apparel maker and retailer. It makes clothes and footwear for running, basketball, training, and much more. UAA just this week doubled up earnings estimates and has put together quite a nice recovery year. Shares gapped about 25% higher on earnings positivity, adding to the stock’s existing year-to-date gains of 20%. Investors want to catch this hot #2 (Buy) momentum stock before what should be a strong holiday quarter.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>