For Immediate Release
Chicago, IL – Dec 7, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Ribbon Communications, Inc. (RBBN - Free Report) , A10 Networks, Inc. (ATEN - Free Report) and Pixelworks, Inc. (PXLW - Free Report) .
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Here are highlights from Wednesday’s Analyst Blog:
3 Tech Stocks Under $10 to Buy Now
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. We are also keenly aware of the latest sector trends and make sure to cover all of the hottest industries.
Today we’ve highlighted three stocks that fall into the broad “technology” sector. Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #2 (Buy) or better. Take a look at the strong estimate revision activity and other factors that make these companies stick out right now:
1. Ribbon Communications, Inc.
Prior Close: $7.60
Ribbon Communications is a leading provider of voice infrastructure products for the new public network, and the company offers a variety of cloud-based, VoIP, and IP-based communications solutions. Formed by the merger of Sonus and GENBAND, Ribbon is expected to finish with full-year EPS growth of 22% and sales growth of 30%.
More impressively, that expansion is expected to continue, with current estimates calling for EPS growth of 25% and revenue growth of 90% next year. The company has also met or surpassed estimates in 10 consecutive quarters, and with a P/E ratio of 18.44, its valuation has not gotten out of hand. What’s more, RBBN is sporting a Zacks Rank #1 (Strong Buy).
2. A10 Networks, Inc.
Prior Close: $7.66
A10 Networks provides software-based networking solutions, enabling enterprises and government organizations to optimize the performance of their datacenter applications. To the delight of investors, management recently debuted a new software subscription model. This strategy has proven valuable throughout the industry and could be a catalyst to push this Zacks Rank #2 (Buy) even higher.
We also know that investors love to reward a company’s first profits. A10 posted a surprise profit and crushed earnings estimates by 250% in its latest quarter, helping it move closer to consistent profitability. Earnings estimates have been on the rise since, and we expect EPS figures to swell by another 350% in the upcoming fiscal year. A10 is also nearly debt-free and has plenty of cash in hand, so it is in a strong financial position for a young tech company.
3. Pixelworks, Inc.
Prior Close: $5.39
Pixelworks designs semiconductors and software that enable the visual display of broadband content through a wide variety of electronic devices. Currently, PXLW has a Zacks Rank #1 (Strong Buy) and is sporting “A” grades in the Growth and Momentum categories of our Style Scores system, making it a dynamic pick for different types of investors.
What’s more, earnings estimates are on the rise, and the company has successfully surpassed estimates by an average of 150% in each of the trailing four quarters. Semiconductors are poised for more strength in 2018, and this could be an option for smaller investors looking to load up on shares in this industry.
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. For smaller investors looking to find solid tech stocks at lower prices, this list is a great place to start.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
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About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.