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.
There’s a few other things we can feel confident knowing based on the many philosophies of Zacks Investment Research, including the fact that your best stock picks will come from the best industries. With many major indexes currently floating near all-time highs, we can see that many industries across the board are performing well; however, we can also see that many industries stick out ahead of others.
With that said, we are noticing a lot of great activity from industries that fall into the larger computers and technology sector. Using the Zacks Stock Screener, we combed for stocks that were both low-priced and within that sector. After running the screen, these three stocks stick out for their strong metrics and sub-$20 per share price tag:
1. EarthLink Holdings
Prior Close: $6.80 / Industry: IT Services (Top 39% of Zacks Industry Rank)
EarthLink Holdings is a provider of IT services and communications to both businesses and residential customers. The stock is currently a Zacks Rank #1 (Strong Buy) and holds a VGM score of “A.” Its VGM score is the result of strong showing in each of our Style Scores categories, as the stock as an “A” grade for Value, Growth, and Momentum. On top of this, EarthLink posted a surprise profit last quarter, beating the Zacks Consensus Estimate by 150%, and the estimate for its full-year earnings has been raised by 15 cents over the past 90 days.
2. Mobile TeleSystems
Prior Close: $8.84 / Industry: Non-US Wireless Services (Top 34% of Zacks Industry Rank)
Mobile TeleSystems is the largest mobile provider in Russia and a leading figure in the industry throughout the region. The company currently has a Zacks Rank #1 (Strong Buy). The stock also holds a VGM score of “A,” which is boosted by its impressive P/E ratio of 9.86. MBT has seen one positive earnings estimate revision in the past 60 days, and its full-year earnings estimate has gone up by two cents within that timeframe.
3. Exa Corporation
Prior Close: $14.12 / Industry: Computer Software (Top 38% of Zacks Industry Rank)
Exa Corporation is a leading provider of software products for the computer-aided engineering market. Exa currently has a Zacks Rank #1 (Strong Buy) and a VGM score of “B.” Within the past 60 days, the company has seen two positive estimate revisions for its full-year earnings, and Exa has an impressive history of beating earnings estimates. The company has surpassed the Zacks Consensus Estimate by an average of 49.26% over the trailing four quarters. Exa is also expecting earnings growth of 31% and sales growth of 13% this year, well above the industry averages in both categories.
Bottom Line
Although a stock’s market price is not necessarily one of the key categories we look at, we can still use the Zacks Rank and our other prove research to find good stock picks, regardless of their share price. On top of that, we know that great stocks come from great industries, and with all of that in mind, we were able to locate three solid technology-related stocks for under $20 per share.
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3 Strong Buy Tech Stocks Under $20 per Share
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.
There’s a few other things we can feel confident knowing based on the many philosophies of Zacks Investment Research, including the fact that your best stock picks will come from the best industries. With many major indexes currently floating near all-time highs, we can see that many industries across the board are performing well; however, we can also see that many industries stick out ahead of others.
With that said, we are noticing a lot of great activity from industries that fall into the larger computers and technology sector. Using the Zacks Stock Screener, we combed for stocks that were both low-priced and within that sector. After running the screen, these three stocks stick out for their strong metrics and sub-$20 per share price tag:
1. EarthLink Holdings
Prior Close: $6.80 / Industry: IT Services (Top 39% of Zacks Industry Rank)
EarthLink Holdings is a provider of IT services and communications to both businesses and residential customers. The stock is currently a Zacks Rank #1 (Strong Buy) and holds a VGM score of “A.” Its VGM score is the result of strong showing in each of our Style Scores categories, as the stock as an “A” grade for Value, Growth, and Momentum. On top of this, EarthLink posted a surprise profit last quarter, beating the Zacks Consensus Estimate by 150%, and the estimate for its full-year earnings has been raised by 15 cents over the past 90 days.
2. Mobile TeleSystems
Prior Close: $8.84 / Industry: Non-US Wireless Services (Top 34% of Zacks Industry Rank)
Mobile TeleSystems is the largest mobile provider in Russia and a leading figure in the industry throughout the region. The company currently has a Zacks Rank #1 (Strong Buy). The stock also holds a VGM score of “A,” which is boosted by its impressive P/E ratio of 9.86. MBT has seen one positive earnings estimate revision in the past 60 days, and its full-year earnings estimate has gone up by two cents within that timeframe.
3. Exa Corporation
Prior Close: $14.12 / Industry: Computer Software (Top 38% of Zacks Industry Rank)
Exa Corporation is a leading provider of software products for the computer-aided engineering market. Exa currently has a Zacks Rank #1 (Strong Buy) and a VGM score of “B.” Within the past 60 days, the company has seen two positive estimate revisions for its full-year earnings, and Exa has an impressive history of beating earnings estimates. The company has surpassed the Zacks Consensus Estimate by an average of 49.26% over the trailing four quarters. Exa is also expecting earnings growth of 31% and sales growth of 13% this year, well above the industry averages in both categories.
Bottom Line
Although a stock’s market price is not necessarily one of the key categories we look at, we can still use the Zacks Rank and our other prove research to find good stock picks, regardless of their share price. On top of that, we know that great stocks come from great industries, and with all of that in mind, we were able to locate three solid technology-related stocks for under $20 per share.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>