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 five stocks that are currently trading for under $10 per share. All of these stocks currently have a Zacks Rank #1 (Strong Buy), and a variety of other factors make these companies stand out as having strong upside potential.
1. BlackBerry LTD (BBRY - Analyst Report)
Previous Close: $7.94
BlackBerry LTD is engaged in the design, manufacture, and marketing of wireless solutions for the mobile communications market. The company is coming off an impressive earnings run, wherein its EPS beat the Zacks Consensus Estimate by an average of 61.25% in each of the last four quarters. BlackBerry remains a loss-making company right now, but its current-quarter Zacks Consensus Estimate has gained three cents in the past 30 days, and the stock’s “A” grade for momentum is indicative of its recent performance.
2. eGain Corporation (EGAN - Snapshot Report)
Previous Close: $3.16
eGain Corporation provides customer engagement solutions, including web customer interaction, social customer interaction, and contact center applications. The company’s current-quarter Zacks Consensus Estimate has gained three cents in the past 30 days, and it also holds a positive Earnings ESP of 50%. Furthermore, eGain is holding solid style scores; its “A” grades in Growth and Momentum have helped earn it a VGM score of “B.”
3. Asure Software (ASUR - Snapshot Report)
Previous Close: $6.77
Asure Software is a provider of Web-based workforce management solutions that help businesses manage their office environments. Asure expects to see EPS growth of 211% on 37.7% revenue growth this year. Its current-quarter Zacks Consensus Estimate has gained a penny over the last 30 days, and its group of internet services companies currently falls in the top 11% of the Zacks Industry Rank. Additionally, the company’s positive Earnings ESP of 14.3% indicates that we could be in store for an earnings surprise this quarter.
4. Evolution Petro (EPM - Snapshot Report)
Previous Close: $7.23
Evolution Petroleum develops incremental petroleum reserves by applying conventional and specialized technology to known oil and gas resources in the U.S. With OPEC’s recent deal to cut production, the worldwide oil industry should benefit as oil climbs above $50 a barrel. Evolution expects to see EPS growth of 218% on revenue growth of 46.12% this year, and its “A” grades in our Growth and Momentum categories highlight its recent performance.
5. Health Insurance Innovations (HIIQ - Snapshot Report)
Previous Close: $5.59
Health Insurance Innovations operates as a developer and administrator of web-based individual health insurance plans and ancillary products. Its current-quarter Zacks Consensus Estimate has gained two cents in the past 90 days, and it expects to see EPS growth of over 135%. The company is coming off a strong streak of earnings beats, and the life insurance industry is currently in the top 12% of the Zacks Industry Rank.
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. Regardless of share price, we can 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. If you would like to check out more of these low-priced stocks, look no further than our Stocks Under $10 portfolio service!
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