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. Rosehill Resources Inc. (ROSE - Free Report)
Prior Close: $8.01
Rosehill Resources is an oil & gas exploration company. It holds producing assets in Texas and New Mexico and will have investment activity in the Permian Basin. ROSE is a Zacks Rank #1 (Strong Buy) with an “A” grade for Growth in our Style Scores system. Oil prices have been trending upward over the long term, and that spells good news for exploration firms like Rosehill. In fact, earnings growth is expected to finish in the quadruple-digit percentages for the company this year. Plus, the stock looks cheap at less than 5x forward earnings.
2. FGL Holdings (FG - Free Report)
Prior Close: $9.23
FGL is a holding company offering fixed annuities and life insurance products, forming after the merger of CF Corp. and Fidelity & Guaranty Life was completed late last year. The stock is sporting a Zacks Rank #1 (Strong Buy) and looks like the right option for those searching for a low-priced value play. Shares are trading at just 8x earnings, which is a nice discount to the industry average. The company is expected to report this week, which could present risk, but considering recent sentiment and performance, it might just be ready to run higher.
3. Glu Mobile Inc. (GLUU - Free Report)
Prior Close: $6.16
Glu Mobile is a leading global publisher of mobile games, including top-rated original titles and titles based on major brands from partners like Activision and Hasbro. GLUU holds a Zacks Rank #2 (Buy) and tells a remarkable earnings growth story. Current estimates are calling for Glu to finish the year with bottom-line growth of more than 156%, and the company is projected to see a long-term annual EPS growth rate of 15%. GLUU is also a hot momentum pick after nearly doubling over the past year.
4. inTest Corporation (INTT - Free Report)
Prior Close: $8.35
InTest makes ATE interface solutions and temperature management products, which are used by semiconductor manufacturers to perform important testing of certain circuits and wafers. INTT currently sports a Zacks Rank #2 (Buy) and an “A” grade in the Growth category of our Style Scores system. Earnings and cash flow growth are skyrocketing, and investors are getting a great price for that improvement, as the stock has a P/E of 8.4 and a PEG of 0.8. Meanwhile, shares are responding to investor excitement and have climbed nearly 13% in just the past four weeks.
5. Francesca’s Holdings Corporation (FRAN - Free Report)
Prior Close: $7.65
Francesca’s Holdings is a specialty retailer of women’s apparel operating a chain of boutique stores in the United States. The stock is holding a Zacks Rank #2 (Buy), as well as “A” grades in the Value and Momentum categories. Shares are trading under 13x forward earnings and have a PEG of just 1.0. Meanwhile, the stock is taking off and has surged more than 36% over the trailing 12 weeks. Its earnings outlook has improved too, with our consensus projection for its full-year EPS results improving by about 4% in the past month.
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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