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 tech companies stick out right now:
1. SITO Mobile, Ltd. (SITO - Free Report)
Prior Close: $3.60
SITO Mobile is a provider of location-based advertising and mobile messaging platforms that allow brands to launch targeted mobile advertising campaigns. The stock is sporting a Zacks Rank #2 (Buy), and the company has witnessed strong earnings estimate revision activity and is now expected to improve its bottom line by 94% in the current fiscal year.
That earnings growth is projected to come on the back of 25% revenue growth. The company is still expected to be in the red this year, but earnings are estimated to turn positive soon, and EPS expansion is expected to reach an annualized rate of 25% over the next three to five years. Meanwhile, the stock is trading with a respectable P/S ratio of 2.1.
2. Camtek Ltd. (CAMT - Free Report)
Prior Close: $7.88
Camtek is a developer of automatic optical inspection systems that are used to enhance both production processes and yield for manufacturers in the circuit board and semiconductor industries. After posting better-than-expected earnings results last week, CAMT has moved to a Zacks Rank #2 (Buy), and its resulting share price surge has earned it an “A” grade for Momentum in our Style Scores system.
Camtek is also an exciting growth pick, with EPS figures expected to improve by 81.5% in the current fiscal year and an additional 25.5% in 2019. Still, the stock is trading with a Forward P/E of just 16.1 and a P/S of 2.8—so its valuation is hardly stretched considering its rapid expansion opportunities.
3. Attunity Ltd. (ATTU - Free Report)
Prior Close: $9.61
Attunity is a provider of software solutions that enable access, management, sharing, and distribution of data across enterprise platforms and the Cloud. The stock is currently holding a Zacks Rank #2 (Buy) and looks like one of our hottest growth and momentum options right now. Shares have soared 31% over the past month, while its full-year EPS estimates have improved by 74% in that time.
The company is now expected to be profitable on the back of 280% earnings growth in 2018. That EPS growth is projected to be supported by revenue growth of 24%. Attunity is expected to witness a long-term earnings growth rate of 20%.
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.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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