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3 Strong Tech Stocks Trading Under $10 a Share to Buy for September

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At Zacks, we try to avoid labeling stocks as “cheap” or “expensive.” Instead, we opt to look beyond a stock’s face value, and our system puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.

There are overarching macroeconomic factors at play that might make some investors more than a bit nervous right now. Stocks around the world did bounce back Thursday after news broke that the U.S. and China are set to begin another round of trade negotiations in early October.

Of course, global economic worries still persist. Yet amid the current interest rate environment, investors still need to search for returns somewhere. Stocks trading under $10 are often more volatile than their pricier peers. But investors can still scoop up big returns with the right low-priced stocks.

Therefore, when searching for these low-priced stocks, we still look for similar trends in growth, value, and momentum. Then we apply the Zacks Rank to properly analyze the potential that these companies have.

Today we’ve highlighted three stocks that fall into the broader “technology” sector that investors might want to buy right now…

1. MobileIron, Inc.

Prior Close: $7.08 USD

MobileIron is an enterprise-level cybersecurity firm with a focus on “zero-trust” unified endpoint management. The mobile-focused company operates under the “never trust, always verify” model that assumes threats are always present. A year ago, shares of the Mountain View, California-based firm traded at $4.85, and its growth prospects appear strong as it continues to expand its customer base. MOBL posted its third straight period of double-digit revenue growth last quarter and saw its annual recurring revenue jump 19%. Meanwhile, MobileIron in Q2 rolled out its Zero Sign-On solution, which it said would remove the No. 1 source of corporate breaches: passwords.

The firm boasts that it is now the only security provider with the ability to eliminate passwords. If MobileIron is able to wow clients with this offering, it could catch on quickly. Looking ahead, our current Zacks Consensus Estimates call for the firm’s full-year fiscal 2019 revenue to jump 8.5% to $209.7 million, with 2020’s figure projected to come in nearly 11% above our current-year estimate. Perhaps more importantly, MobileIron is expected to report a much smaller full-year loss this year. And its adjusted 2020 EPS figure is projected to soar from -$0.02 in 2019 to +$0.08. MOBL is a Zacks Rank #2 (Buy) that also sports a “B” grade for Growth in our Style Scores system. And MobileIron operates a business that will likely be in high demand for years to come.

2. Digital Turbine, Inc. (APPS - Free Report)

Prior Close: $7.47 USD

Digital Turbine connects OEMs, mobile operators, and publishers with advertisers and app developers. The firm just recently announced a partnership with Razer, a lifestyle-focused brand for gamers that will see it “power curated app recommendations to users of Razer Cortex Mobile—which is a one-stop Android (GOOGL - Free Report) games client—enabled smartphones.” APPS shares have soared from roughly $1.40 a share 12 months ago to its current price point.

The Austin, Texas-based company’s longer-term earnings estimate revision activity has trended in the right direction over the last 60 days, which helps APPS earn its current Zacks Rank #1 (Strong Buy) standing. Digital Turbine also sports an “A” grade for Growth. The firm is projected to see its adjusted current-quarter (Q2 2020) earnings soar 300% on 32.3% revenue expansion. Meanwhile, its full-year EPS figure is expected to surge 150% on 26.4% stronger sales. On top of that, APPS has crushed our earnings estimates over the trailing four periods by an average of 125% and it is expected to post double-digit top and bottom-line growth in fiscal 2021 as well.

3. Vipshop Holdings Limited (VIPS - Free Report)

Prior Close: $8.56 USD

This Guangzhou, China-based online discount retailer sells popular branded products such as clothing from the likes of Nike (NKE - Free Report) and more regional-specific brands to cosmetics and much more. Vipshop’s second-quarter fiscal 2019 active customers base jumped 11% from the year-ago period to 33.1 million. Along with its under $10 price tag, VIPS shares are currently trading at 10.6X forward earnings, which marks a discount against its industry’s 14.4X average. Vipshop’s 0.44 price/sales ratio also falls well below its industry’s 0.74 mark.

Vipshop is a Zacks Rank #2 (Buy) right now that rocks “A” grades for both Value and Growth in our Style Scores system. Looking ahead, the company’s full-year 2019 EPS figure is projected to soar nearly 40% to reach $0.81 per share on 2% revenue expansion. Peeking further down the line, VIPS’ adjusted 2020 earnings are projected to climb 24.3% above our current year estimate on 6.4% higher revenue.

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