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Top 10 Stocks Under $20

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At Zacks, we try to avoid labeling stocks as “cheap” or “expensive.” Instead, we opt to look beyond a stock’s face value, and our system puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.

With that said, low-priced stocks can still be attractive to investors as they present the chance to take a larger position in a company, which they might not be able to in higher-priced stocks. When searching for these low-priced stocks, we still look for similar trends in growth, value, and momentum. Then we apply the Zacks Rank to properly analyze the potential that these companies have.

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 10 stocks that are currently trading for under $20 per share. All of these stocks sport a Zacks Rank #2 (Buy) or better at the moment, along with a variety of other positive factors that help these companies stand out.

1. Rent-A-Center, Inc.

Prior Close: $19.15

Rent-A-Center runs a rent-to-own style business, offering customers the chance to make smaller, installment-based payments on everything from consumer electronics to furniture. The Texas-based, firm owns and operates approximately 2,300 stores, mostly in the United States, and has seen its stock price skyrocket 155% over the last year. RCII is coming off Q4 earnings and revenue beats and its adjusted fiscal 2019 earnings are projected to soar over 92%, based on our current Zacks Consensus Estimate. Rent-A-Center has also experienced some solid earnings revision activity to help it earn a Zacks Rank #1 (Strong Buy).

2. eGain Corp. (EGAN - Free Report)

Prior Close: $12.20

Shares of eGain have soared over 86% in 2019. The software-as-a-service provider of customer engagement solutions in the U.S., U.K., India, and beyond, is projected to see its current-year—which ends on June 30—revenue pop 10.4%, with fiscal 2020’s top-line expected to come in 14.4% above our 2019 estimate. Meanwhile, eGain’s adjusted quarterly earnings are projected to surge 50%, while its full-year EPS figure is expected to skyrocket 216.7%. And our Zacks Consensus Estimate for the current year has improved by 137.5% over the last 30 days, which helps eGain sport a Zacks Rank #2 (Buy) and an “A” grade for Growth in our Style Scores system.

3. Glu Mobile Inc.

Prior Close: $9.12

Glu Mobile is a global developer and publisher of free-to-play mobile video games, such as MLB Tap Baseball 2018, Deer Hunter, Kim Kardashian Hollywood, and more. The firm saw its 2018 revenue surge 28% to reach $366.6 million as mobile gaming becomes more popular. GLUU stock has climbed 15% to start the year and it has some new games entering beta, including a Disney/Pixar (DIS - Free Report) title. Glu Mobile’s 2019 earnings are projected to skyrocket 230% on the back of 16% revenue growth. GLUU is Zacks Rank #2 (Buy).

4. CrossAmerica Partners LP (CAPL - Free Report)

Prior Close: $17.97

CrossAmerica Partners LP is a wholesale distributor of gasoline and diesel fuel and also owns and leases real estate used in the industry. Shares of CAPL have surged 26% to start the year and the company’s current quarter revenues are projected to surge roughly 15%. More impressively, CrossAmerica Partners’ adjusted EPS figure is expected to skyrocket 250%. This triple-digit bottom-line expansion is projected to continue in the upcoming full-year. CAPL sports an impressive P/S ratio of 0.24 and is a Zacks Rank #1 (Strong Buy) stock that rocks an “A” grade for Growth and a “B” for Value.

5. JetBlue Airways Corporation (JBLU - Free Report)

Prior Close: $ 16.56

JetBlue is a low-fare, low-cost passenger airline based in New York's John F. Kennedy International Airport. The company carries more than 38 million customers a year to 101 cities in the U.S., Caribbean, and Latin America with an average of 1,000 daily flights. JBLU is a Ranks Rank #2 (Buy)-rated stock right now, with “A” grades for both Value and Momentum. JetBlue is also pulling off impressive cost-reduction initiatives and said it will expand its capacity this year. JBLU stock is trading at just over 8.2X earnings, which marks a discount to the airline industry’s 10X average. Plus, JetBlue is projected to see its full-year earnings jump 35.5%

6. Lumber Liquidators Holdings, Inc. (LL - Free Report)

Prior Close: $ 11.56

Lumber Liquidators is a hardwood flooring retailer that has seen its stock price climb 21% in 2019. The company owns about 400 stores around the U.S. LL is sporting a Zacks Rank #2 (Buy) right now and “B” grades for Value and Growth. LL’s adjusted earnings for its soon-to-be-reported fourth quarter are expected to soar 60%. On top of that, the firm’s first quarter 2019 earnings are projected to surge nearly 29%, with Q1’s estimate coming up significantly in recent weeks.

7. Zix Corporation

Prior Close: $7.30 USD

Zix is an email security firm that specializes in data loss prevention, threat protection, email encryption, and more. The company is trading at 22.2X earnings at the moment, which marks a massive discount compared to its industry’s 44.7X average. Zix is also a Zacks Rank #2 (Buy) that holds a spot in a Security industry that rests within the top 4% of our 256 industries. ZIXI stock is up over 71% in the last year and its cybersecurity business is likely to grow as part of broader industry expansion.

8. Digital Turbine, Inc. (APPS - Free Report)

Prior Close: $3.26 USD

Digital Turbine tries to connect OEMs, mobile operators, and publishers with advertisers and app developers, and its positive longer-term earnings revision activity helps it earn a Ranks Rank #1 (Strong Buy). APPS is coming off a third quarter that saw it top earnings and revenue estimates. The Austin, Texas-based firm also rocks an “A” grade for Growth and is expected to swing from an adjusted loss to post earnings of $0.02 a share in the current quarter, for a 300% expansion. Digital Turbine’s revenue is also expected to surge approximately 26% in the next two quarters. Furthermore, the firm’s full-year EPS figure is projected to soar 240%, with 67% growth projected in the following year.

9. Resources Connection, Inc.

Prior Close: $17.42 USD

Resources Connection offers business consulting services, from accounting to risk management, under the name Resources Global Professionals in North America, Asia Pacific, and Europe. The firm carries a Zacks Rank #1 (Strong Buy) at the moment, along with “A” grades for both Value and Growth. RECN stock is up roughly 23% this year and the stock is trading not too far above its industry’s average P/E at 17.5X. The company’s current-quarter earnings are projected to jump over 22% on the back of 6.7% revenue growth

10. TESSCO Technologies, Inc.

Prior Close: $16.39

TESSCO Technologies Incorporated provides services, products, and solutions that help run mobile communications, Wi-Fi, Internet of Things, location tracking, and more. Shares of TESS have soared roughly 36% in 2019. Meanwhile, the company’s adjusted current-quarter earnings are projected to skyrocket 129%. Plus its earnings estimate has increased 22.6% over the last 60 days to help it earn a Zacks Rank #1 (Strong Buy). TESSCO also has a dividend yield of 5.2% and is expected to see its quarterly EPS figure skyrocket 129%.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?

From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.

This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.


See Stocks Today >>

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