Category Archives: Best Stocks

Top 5 Gold Stocks To Buy For 2019

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 stocks.

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. We are also keenly aware of the latest sector trends and make sure to cover all of the hottest industries.

Today we’ve highlighted three stocks that fall into the broad “technology” sector. Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #2 (Buy) or better. Take a look at the strong estimate revision activity and other factors that make these tech companies stick out right now:

Top 5 Gold Stocks To Buy For 2019: Elevate Credit, Inc.(ELVT)

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.

Top 5 Gold Stocks To Buy For 2019: LM Ericsson Telephone Company(ERIC)

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.

Top 5 Gold Stocks To Buy For 2019: 21Vianet Group, Inc.(VNET)

21Vianet is one of China’s leading carrier-neutral internet data center services providers. The firm provides hosting and related services, managed network services, and cloud computing infrastructure. VNET is currently holding a Zacks Rank #2 (Buy) and looks like an interesting pick for anyone trying to find strong Chinese tech stocks.

Shares have added a staggering 54% in the past three months but could break higher if 21Vianet lives up to its growth expectations, with current estimates calling for earnings to improve by 83% in 2018. Meanwhile, the company is seeing cash flow growth of 103% right now. Still, with the stock sporting a P/S ratio of just 2.2, investors are clearly getting a solid price at the moment.

Top Undervalued Stocks To Watch Right Now

We’re now just past the halfway mark of the year, which means businesses will soon be announcing second-quarter 2018 operating results. But investors don’t necessarily have to wait for management teams to hop on quarterly earnings conference calls to know if a stock is a buy this July.

Sometimes a high-yield stock gets punished without good reason, Sometimes an industry leader is quietly positioning itself to exploit a market rebound, and sometimes it’s just tough to pass up a global energy leader boasting a 6% dividend yield while it transitions to renewable energy fits that bill. Here’s why they’re my top stocks to buy in July.

Top Undervalued Stocks To Watch Right Now: International Paper Company(IP)

Entering 2018, International Paper stock had kept pace with the total returns of the S&P 500 over the previous three years. But shares are down 11% year to date just past the halfway mark. That sets up an intriguing opportunity for long-term investors with an appetite for dividends, as the stock currently yields 3.6%. Management has big plans for increasing that over time.

As one of the leading manufacturers of cardboard and with a stable of low-cost production facilities in North America, International Paper has expertly exploited the growing trend of online shopping in the last decade. In the last five years, the business has averaged $1.9 billion in free cash flow. Management intends to deploy 40% to 50% of that in efforts to create shareholder value, either through share buybacks or dividend increases (or lately, both). 

While a massive deal to acquire peer Smurfit Kappa was abandoned in early June, there are still other long-term growth opportunities for investors to look forward to. For instance, International Paper owns part of a joint venture in Russia called Ilim, which just delivered record equity earnings of $92 million in the first quarter of 2018. That compares to $183 million in all of last year. Throw in continued portfolio optimization efforts, together with low-cost production, and the company is poised to keep making progress on its near- and short-term goals while rewarding investors with a hefty dividend.  

Top Undervalued Stocks To Watch Right Now: Weight Watchers International Inc(WTW)

Weight Watchers stock has rallied tremendously in the last few years. However, trading at a forward price to earnings ratio of 27, WTW stock is still priced at a reasonably level.

The company reported significantly better than expected first-quarter results, citing strong recruitment trends. Its membership reached a record 4.6 million, and its total paid weeks jumped 27% year-over-year last quarter. Furthermore, the company predicted that its overall revenue would surge almost 20% in fiscal 2018.

A number of analysts were very enthusiastic about the outlook for Weight Watchers in the wake of the results.

For example, SunTrust analyst Michael Swartz started coverage of WTW stock with a $90 price target and a “buy” rating on May 15. According to the analyst, who was upbeat about the company’s strategy, Weight Watcher’s products are “one of the first stops” for someone considering a structured weight loss program, The Fly reported.

Also starting Weight Watchers stock with a “buy” rating was Bank of America’s Olivia Tong. The analyst, who placed a $95 price target on Weight Watchers stock, wrote that the company “has a proven operational model and sustainable momentum,” The Fly noted.

Finally, Craig-Hallum’s Alex Fuhrman expects the company’s summer ads to cause its recruiting trends to accelerate, The Fly noted. He kept a $120 price target and a “buy” rating on Weight Watchers stock.

WTW has excelled at recruiting well-known, highly respected celebrities to endorse its products. Of course, the company has convinced Oprah Winfrey to invest in Weight Watchers stock and tout its products in ads. More recently, the company signed up music producer DJ Khaled and actor Kevin Smith in an effort to appeal to more young people and males.

Judging by Weight Watcher’s first-quarter results, that effort seems to be bearing fruit.

Top Undervalued Stocks To Watch Right Now: Aphria Inc. (APHQF)

Aphria is one of the Canadian marijuana stocks that has experienced a miserable year so far. Its stock is currently down 39% since the beginning of 2018 — and that reflects improvement over the last couple of months.

However, most of the same catalysts for Canopy Growth also apply to Aphria. The company should be a big winner from recreational marijuana legalization in Canada. Aphria is on pace to produce 225,000 kilograms of cannabis annually by early 2019. The company also has a solid retail distribution network thanks to its recent deal with Southern Glazer’s, the largest wine and spirits distributor in North America.

Like Canopy Growth, Aphria has targeted the global medical marijuana market. If U.S. laws change to prevent interference with states that have legalized marijuana, Aphria should be in great shape to jump into the U.S. market because of its relationship with Liberty Health Sciences. It’s even possible that Aphria could join Canopy by moving into the cannabis-infused beverage business: Reports surfaced recently that Molson Coors Brewing is in discussions with Aphria and three other Canadian marijuana growers about a potential deal.