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 throughout the remainder of the calendar year.
Check out these five great stocks under $10 for 2018:
1. FGL Holdings (FG - Free Report)
Prior Close: $8.92
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 stock pulled back a bit after its recent earnings bit, and now that’s appearing to be a buying opportunity as it levels out.
2. Glu Mobile Inc. (GLUU - Free Report)
Prior Close: $7.25
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.
3. inTest Corporation (INTT - Free Report)
Prior Close: $8.55
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 8.6 and a PEG of 0.9. Meanwhile, shares are responding to investor excitement and have climbed nearly 21% in the past twelve weeks.
4. North American Construction Group Ltd. (NOA - Free Report)
Prior Close: $7.60
North American Construction provides heavy construction and mining services, primarily in Canada, to large oil, natural gas and resource companies. NOA is a Zacks Rank #1 (Strong Buy) with “A” grades for Growth and Value. The company crushed bottom-line estimates in its most recent quarter, and after positive estimate revisions, it is now expected to witness EPS growth of 229% this fiscal year. Growth is expected to continue into next year, but the stock has hardly gotten expensive at just 16.5x forward earnings.
5. Commercial Vehicle Group, Inc. (CVGI - Free Report)
Prior Close: $9.45
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 #1 (Strong Buy) and looks undervalued at its current share price levels. The stock is trading at just 6.8x forward earnings and has a P/S of 0.4. And that’s not due to share price weakness, as CVGI has added about 32% over the last month. That momentum should continue as CVGI nears its next earnings report, in which it is expected to report earnings growth of 113%.
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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