Here at Zacks, we try to avoid labeling stocks as “expensive” or “cheap.” Instead, we look far beyond face value, and our system puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.
With that said, lower-priced stocks can be more volatile than stocks trading at higher prices. Nonetheless, stocks that trade for $20 or less can still be highly attractive to investors for many reasons. They also present the chance to take a larger position in a company.
When searching for these low-priced, or cheap 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 found 10 stocks currently trading for under $20 per share using our Zacks Stock Screener that investors might want to buy heading into October…
The AES Corporation (AES - Free Report)
Prior Close: $16.22 USD
AES Corporation is a global power firm that operates a diverse energy portfolio from diesel, gas, and oil to renewables. AES shares have surged 18% in the last 12 months to match its industry’s climb and blow away the S&P 500. Our Zacks Consensus Estimates call for the firm’s adjusted full-year earnings to jump 8% on 1.1% higher sales, with 2020’s sales projected to pop nearly 3% higher to help lift earnings by another 7.5%. The Arlington, Virginia-based company is currently a Zacks Rank #2 (Buy) that boasts an “A” grade for Value in our Style Scores system. AES also pays an annualized dividend of $0.55 per share, for a 3.39% yield that blows away the 10-year U.S. Treasury note’s 1.69%.
Snap Inc. (SNAP - Free Report)
Prior Close: $17.00 USD
Snapchat’s parent company has gone on a stellar run over the last past 52 weeks, up 95%, which blows away Facebook's (FB - Free Report) 9% and Twitter’s (TWTR - Free Report) 48%. SNAP stock has also skyrocketed 200% in 2019 as the disappearing photo and video sharing company proves it can make some real money. The social media firm’s daily active user base jumped from 190 million in Q1 2019 to 203 million in Q2 2019. Along with the whopping sequential user expansion, Snap’s Q3 revenue is projected to soar 47% to help lift its full-year sales by 43% to $1.69 billion. The company’s fiscal 2020 revenue is then projected to surge 37% higher to hit $2.3 billion, with its adjusted earnings expected to climb significantly over a two-year stretch, from a loss of $0.47 per share in 2018 to even in 2020.
Pure Storage, Inc. (PSTG - Free Report)
Prior Close: $17.16 USD
Pure Storage is an enterprise data storage and solutions firm that topped our second-quarter fiscal 2020 estimates on both the top and bottom lines in late August. Shares of PSTG have surged 9% over that last month. Looking ahead, the firm is projected to see its full-year fiscal 2020 revenue jump 23.3% to $1.68 billion, with 2021 expected to come in 21.3% higher at $2.03 billion. Meanwhile, its bottom-line is projected to pop roughly 5% this year and 94% next year. Pure Storage is a Zacks Rank #2 (Buy) right now that rocks an “A” grade for Growth.
Callaway Golf Company ELY
Prior Close: $19.23 USD
Callaway is a golf equipment powerhouse that makes everything from clubs and balls to apparel and footwear. The company beat quarterly estimates in August, upped its earnings guidance, and announced a new $100 million stock repurchase program. ELY stock has jumped over 25% in 2019 to easily outpace its industry and the S&P. Callaway’s adjusted third-quarter earnings are projected to soar 130% to reach $0.23 per share, on the back of 60% sales growth. The firm’s impressive expansion is projected to continue in the fourth quarter. ELY holds a Zacks Rank #2 (Buy) at the moment, along with an “A” grade for Value.
Digital Turbine, Inc. (APPS - Free Report)
Prior Close: $6.69 USD
Digital Turbine connects OEMs, mobile operators, and publishers with advertisers and app developers. The Austin, Texas-based company has seen its stock price skyrocket 440% from $1.24 per share last September to its current price point. Digital Turbine is a Zacks Rank #1 (Strong Buy) at the moment and rocks an “A” grade for Growth. APPS’ adjusted fiscal-year (ending in March) earnings are projected to soar 150% from $0.08 to hit $0.20 per share on 26.4% stronger revenue. The company is then expected to see its sales climb another 20.5% next year to help lift its bottom line 11.7% higher.
Ford Motor Company (F - Free Report)
Prior Close: $9.14 USD
Ford stock has easily outpaced its industry sideways movement in 2019, up 20% against a group that includes GM (GM - Free Report) and Tesla (TSLA - Free Report) . The historic auto giant is set to launch roughly 40 electric offerings by 2022 in order to compete in an industry that is trending toward electric. Ford’s third-quarter sales are projected to jump 1.9% and the company has easily topped our quarterly earnings estimates in each of the last two periods. F stock is a Zacks Rank #2 (Buy) that boasts an “A” for Value and a “B” for Growth. Ford, which currently rests in the top 15% of our Zacks Industries, also pays an annualized dividend of $0.60 per share at the moment, for a massive 6.56% yield.
Vipshop Holdings Limited (VIPS - Free Report)
Prior Close: $9.29 USD
VIPS shares have climbed 74% in 2019 and 17% in the last month. Vipshop is a Guangzhou, China-based discount e-commerce retailer that sells popular branded products, from the likes of Nike NKE and more regional-specific companies. The firm’s active customer base popped 11% last quarter to reach 33.1 million, with total orders up 33%. Vipshop is a Zacks Rank #2 (Buy) at the moment that rocks “A” grades for both Value and Growth to help it earn an overall “A” VGM score. The company’s full-year earnings are projected to soar over 41% this year and an additional 23% in the following year, on 6.4% higher sales.
Danone S.A. (DANOY - Free Report)
Prior Close: $17.37 USD
Danone is a food and beverage brand that sells everything from Evian water to Silk milks and its namesake yogurts. DANOY stock has jumped over 25% in 2019 and 13% in the last year to crush its industry’s roughly 1% climb. The firm’s bottom-line estimates have moved upward recently for both fiscal 2019 and 2020 to help it earn a Zacks Rank #2 (Buy) at the moment. DANOY also rocks “B” grades for both “Growth” and “Value.” Plus, the food and drink powerhouse is a dividend payer, with a 1.97% yield, which tops the 10-year U.S. Treasury note’s 1.69%.
Barrick Gold Corporation GOLD
Prior Close: $18.10 USD
Barrick’s gold mining operations and projects are spread across 15 countries. GOLD stock is up 60% over the last 12 months to blow away the S&P’s 1.1% climb. Barrick’s jump comes as investors put more money into safe-haven assets amid broader global economic uncertainty. The price of gold continues to hover at around $1,500 and the firm’s revenue is projected to jump 33.3% this quarter and 29% next period. At the bottom end of the income statement, GOLD’s adjusted Q3 earnings are expected to jump over 37%, with Q4 projected to soar 83%. Barrick is a Zacks Rank #2 (Buy) right now that also pays a dividend.
Credit Suisse Group (CS - Free Report)
Prior Close: $12.19 USD
Credit Suisse is a global financial services firm that has underperformed its peers, who have also struggled, over the last year. The firm has also faced some legal troubles recently, including a somewhat odd case of spying on a departing executive. Nonetheless, the multinational investment bank holds a dividend yield of 2.10%. Plus, the Swiss bank’s earnings are projected to soar over the next two years. Credit Suisse’s positive longer-term earnings estimate revision activity helps it earn a Zacks Rank #1 (Strong Buy) at the moment. CS also holds an “A” grade for Value and an “A” for Momentum.
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