For Immediate Release
Chicago, IL –July 6, 2018 – 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 Commercial Vehicle Group, Inc. (CVGI - Free Report) , IEC Electronics Corp. (IEC - Free Report) , Elevate Credit, Inc. (ELVT - Free Report) , PFSWeb, Inc. (PFSW - Free Report) and Ericsson (ERIC - Free Report) .
Here are highlights from Thursday’s Analyst Blog:
5 of the Best Stocks Under $10 for 2018
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 shares. 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 sport a Zacks Rank #2 (Buy) or better, and the selected companies are showing signs of outpacing the market in the current calendar year.
Check out these five great stocks under $10 for 2018:
1. Commercial Vehicle Group, Inc.
Prior Close: $7.52
Commercial Vehicle Group supplies interior systems, vision safety solutions and other cab-related products for the global commercial vehicle market. CVGI is holding a Zacks Rank #2 (Buy) and looks undervalued at its current share price levels. The stock is trading with a P/E of just 5.7, which is a significant discount compared to its industry and the broader market. CVGI also has a P/S of 0.3 and a P/CF of 7.6%—both of which support a value argument. And of course, it is worth noting that CVGI’s earnings are expected to grow by 200% in 2018, so this undervaluation is not necessarily coming during a period of business weakness.
2. IEC Electronics Corp.
Prior Close: $5.90
IEC Electronics is a provider of electronic contract manufacturing services, including circuit cards, cable loads, and wire harness assemblies. This stock is one with strong earnings momentum, beating estimates by more than 200% in its most recent quarter. It is also an incredible growth stock, with current estimates calling for adjusted profits to improve by quadruple digits this fiscal year. Still, IEC’s P/E of 12.1 and P/S of 0.6 imply that investors are getting a solid price for the stock, which is currently sporting a Zacks Rank #1 (Strong Buy).
3. Elevate Credit, Inc.
Prior Close: $9.51
Elevate Credit offers online credit solutions—including installment loans, lines of credit, credit building, and credit reporting products—to non-prime consumers. ELVT has emerged as one of our hottest low-priced picks lately, surging more than 24% in the past month. But even with these gains, the stock is trading at a relatively cheap 12.2x forward 12-month earnings. Plus, it should be able to break higher by posting solid earnings results later this month. Current estimates have the company reporting EPS growth of 87.5% for the period. ELVT will also hope to carry its Zacks Rank #1 (Strong Buy) into that report date.
4. PFSWeb, Inc.
Prior Close: $9.89
PFWSWeb is an international provider of transaction management services for both traditional commerce and e-commerce companies. PFSW is currently sporting a Zacks Rank #1 (Strong Buy) and appears to be yet another strong growth stock for the remainder of 2018 and beyond. Earnings growth is expected to reach 13.2% in the current year and 40% in the next year. Meanwhile, the firm has stepped up its cash flow growth, tallying cash expansion of 21.2%—which is ahead of its historical average. PFSW’s P/E of 23.0 is slightly stretched, but its P/S of 0.6 seems quite reasonable.
Prior Close: $7.62
Ericsson is a world-leading supplier in the telecommunications and data communications industries, offering advanced solutions for mobile and fixed networks, as well as consumer products. ERIC is holding a Zacks Rank #2 (Buy) and looks appealing from growth and momentum perspectives. Earnings are expected to improve by more than 135% in the current fiscal year, and the stock has surged more than 22% in the trailing 12 weeks. Still, ERIC is trading with a P/S of just 1.1, which is a nice discount compared to its industry’s average of 1.3.
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, and sales and earnings growth projections can prove to be tough to live up to.
Nevertheless, we can always 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.
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.