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. Kemet Corp. (KEM - Free Report)
Prior Close: $4.27
Kemet Corporation is the world’s largest manufacturer of solid tantalum capacitors and a leading manufacturer of multilayer ceramic capacitors. The company’s full-year Zacks Consensus Estimate for EPS has gained nine cents over the past 30 days, which has helped it earn an “A” grade for Growth and a VGM score of “A.” Our current estimates also indicate that Kemet could post EPS growth of a staggering 217% this quarter. The stock’s Value grade of “A” also shows that it could be a solid pick for value-minded investors.
2. Ocwen Financial Corp. (OCN - Free Report)
Prior Close: $4.90
Ocwen Financial is a financial services company engaged in asset acquisition and resolution, residential finance, commercial finance, investment management and hotel operations. Ocwen’s full-year Zacks Consensus Estimate for EPS has gained 68 cents in the last 30 days, and the stock currently holds a Value grade of “A,” along with its overall VGM score of “A.” Ocwen belongs to a group of financial services companies that currently fall into the top 12% of the Zacks Industry Rank, and although it is currently a loss-making company, we expect Ocwen to show EPS growth of nearly 82% this quarter.
3. The Container Store (TCS - Free Report)
Prior Close: $5.87
The Container Store operates as a specialty retailer of storage and organization products. Over the past 30 days, we’ve seen the company’s full-year Zacks Consensus Estimate for EPS gain four cents, and we now expect its full-year earnings to represent growth of 145% on revenue growth of about 8.5%. The Container Store currently holds an “A” grade for all three categories of our Style Scores system, which has helped it earn an overall VGM score of “A.”
4. Ultra Petroleum
Prior Close: $4.80
Ultra Petroleum is an independent, exploration and production company focused on developing its long life natural gas reserves. This company has also seen solid estimate revision activity; in just the past month, we have seen Ultra Petroleum’s full-year Zacks Consensus Estimate for EPS gain 86 cents. We now expect the company to post EPS growth of about 425% during this fiscal year, which has helped it gain an “A” grade for Growth and an overall VGM score of “A.”
5. StarTek (SRT - Free Report)
Prior Close: $8.48
StarTek is a global provider of process management services and owns and operates branded vertical market Internet web sites. Yet again, we’ve seem impressive revisions to this company’s full-year Zacks Consensus Estimate for EPS. Our current consensus estimate has gained nine cents over the last 30 days. This stock also holds an “A” grade in both the Growth and Momentum categories of our Style Scores system. For the full fiscal year, we expect StarTek to post EPS growth of 106% on revenue growth of 11.5%.
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!
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 >>