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 three stocks that fall under the broad “technology sector.” Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #1 (Strong Buy). Take a look at the strong estimate revision activity and other factors that make these companies stick out right now:
1. SITO Mobile (SITO - Free Report)
Prior Close: $5.26
SITO Mobile is a provider of location-based advertising and mobile messaging platforms that allow brands to launch targeted mobile advertising campaigns. The company’s current-quarter Zacks Consensus Estimate has gained three cents over the past 30 days, which highlights the positive estimate revision activity SITO has seen. Additionally, SITO’s expected EPS growth of 114.58% and revenue growth of 133.76% have helped the company gain an “A” grade for Growth.
SITO isn’t expected to release its latest earnings report until November 22, but the company is looking strong headed into the announcement. Currently, SITO has a positive Earnings ESP of 100%, which makes an earnings beat more predictable.
2. BlackBerry Ltd
Prior Close: $7.35
BlackBerry, once known for its iconic mobile phones, has recently shifted its focus to software and has redefined itself has an all-encompassing mobile solutions company. Its current-quarter Zacks Consensus Estimate has gained five cents in the past 30 days, and we expect the company to see EPS growth of nearly 90% this year.
The company is looking to continue its impressive earnings run as of late. BlackBerry has surpassed the Zacks Consensus Estimate by an average of 61.25% in each of the trailing four quarters.
3. GigPeak, Inc.
Prior Close: $2.56
GigPeak provides semiconductor ICs and software solutions. The company is showing impressive growth right now; based on current estimates, we expect to see GigPeak post earnings growth of 33.33% on revenue growth of 45% this year.
Over the past 30 days, GigPeak has seen two positive estimate revisions, which has lifted its current-quarter Zacks Consensus Estimate two cents higher. The company has posted an earnings beat in each of the trailing four quarters, and its recent movement has earned it an “A” grade for Momentum in our Style Scores system.
A stock’s market price is not a clear indicator of whether it is a good investment. However, the nice thing about the Zacks Rank is that it can be applied to stocks of any price. All of the stocks highlighted here hold a Zacks Rank #1 (Strong Buy) rankings, while also possessing other qualities that help them stick out. For smaller investors looking to find solid tech stocks at lower prices, this list is a great place to start.
Stocks that Aren't in the News. Yet.
You are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. Many of these companies are almost unheard of by the general public and just starting to get noticed by Wall Street. They have been pinpointed by the Zacks system that nearly tripled the market from 1988 through 2015 with a stellar average gain of +26% per year. See these high-potential stocks free >>