Category Archives: Tech Stocks

Hot High Tech Stocks To Own 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 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:

Hot High Tech Stocks To Own For 2019: Commercial Vehicle Group, Inc.(CVGI)

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 #2 (Buy) and looks undervalued at its current share price levels. The stock is trading with a P/E of just 5.7, which is a significant discount compared to its industry and the broader market. CVGI also has a P/S of 0.3 and a P/CF of 7.6%—both of which support a value argument. And of course, it is worth noting that CVGI’s earnings are expected to grow by 200% in 2018, so this undervaluation is not necessarily coming during a period of business weakness.

Hot High Tech Stocks To Own For 2019: IEC Electronics Corp.(IEC)

IEC Electronics is a provider of electronic contract manufacturing services, including circuit cards, cable loads, and wire harness assemblies. The stock obviously sticks out because of its Zacks Rank #1 (Strong Buy), but investors might also believe it is undervalued at current share prices for a number of other reasons.

Notably, IEC is trading at just 13x forward earnings, which is sharp discount from its industry’s average of 19.6x. Meanwhile, IEC has a P/S ratio of 0.6, which is also a discount to its industry peers. We should also note that IEC is expected to witness quadruple-digit EPS growth in 2018, and its earnings estimates have trended significantly higher over the past quarter.

Hot High Tech Stocks To Own For 2019: Vuzix Corporation(VUZI)

Vuzix is a supplier of smart-glasses and augmented reality (AR) technologies and products for the consumer and enterprise markets. Its wearable displays are used for 3D gaming, manufacturing training, and military tactical equipment. VUZI is a obviously a member of a trendy growth industry, but the stock is also interesting right now due to its Zacks Rank #2 (Buy).

Vuzix is still in the red, but the company is inching toward profitability and is expected to improve EPS figures by 31% this year and 29% next year. Meanwhile, revenue growth is expected to touch nearly 200% in 2018 and 93% in 2019.

New products and mainstream adaption should continue to fuel these estimates. VUZI still feels like a speculative growth stock that could be volatile, but an improving outlook is signaling that now is a solid time to buy.

Top Stocks To Invest In 2019

Money Morning Quantitative Specialist Chris Johnson has two top picks for the best healthcare stocks to buy in July.

Chris’ proprietary "Best in Breed" (BiB) system finds both aggressive companies and discovers undervalued sectors poised for massive gains.

The Gains on This One $10 Stock Alone Could Earn You Enough to Retire – Click Here Now for Details

And his BiB system has uncovered breakout potential for the healthcare industry.

That led Chris to take a deep dive into the sector, and he came away with two healthcare stocks with huge upside potential…

Top Stocks To Invest In 2019: Celgene Corporation(CELG)

I’ve owned Celgene when its stock was hot, and I’ve owned it when it was not. There hasn’t been much heat for the big biotech over the last year. However, my hunch is that will change.

Celgene stock trades at less than eight times expected earnings. The biotech stock is cheap for two primary reasons. First, Celgene depends on Revlimid for 63% of its total revenue, and generic-drug makers are challenging the patents for Revlimid. Second, the company has experienced some pipeline setbacks, which makes investors even more anxious about the potential threat to Revlimid. These factors arguably make Celgene the riskiest big biotech stock on the market.

But Celgene continues to deliver exceptionally strong earnings. I don’t see the stock going much lower as long as that doesn’t change — and I don’t think it will. Any good news should provide a nice catalyst for the biotech. What’s more, the mere anticipation of good news should boost the stock.

Investors have plenty of anticipating to do. Celgene should file yet again for approval of ozanimod in treating multiple sclerosis in early 2019. Solid phase 3 results for luspatercept in treating myelodysplastic syndromes (MDS), a group of rare blood disorders, should lead to regulatory filings in the first half of next year. Celgene also expects to submit cell therapy liso-cel (formerly known as JCAR017) for approval in 2019.

Those are just three potential blockbusters that Celgene has percolating in its pipeline, and there are more. In my view, the growth prospects for the biotech are really good. They’re so good that I don’t think Celgene will remain such a bargain for much longer.

Top Stocks To Invest In 2019: Royal Dutch Shell plc(RDS-A)

Royal Dutch Shell put up an almost unbelievable $14.2 billion in free cash flow in the last 12 months. That allows it to simultaneously reward shareholders with a 5.5% dividend yield and and position itself as a prime player in the future of energy — more specifically, in the coming transition from gas to electric transportation. 

The world’s largest oil companies are getting hip to that game by making giant, multibillion-dollar investments in electric utilities and renewable energy technologies. Holland’s prized oil producer isn’t risking getting left behind, planning to spend up to $2 billion per year on non-fossil energy sources. So far, so good. 

Royal Dutch Shell owns a 44% stake in solar project manager Silicon Ranch, it acquired U.K. electricity provider First Utility, and it owns natural gas distributor and solar technology developer MP2 Energy. That provides a solid foundation upon which to build, but it’s important for investors to note that management sets a high bar for its renewable investments.

All of its acquisitions in electricity distribution and electricity generation are expected to deliver equity rates of return of 8% to 12%, in addition to free cash generation within the next five years. In other words, Royal Dutch Shell (and a few other oil majors) isn’t just gobbling up renewable energy assets to collect shiny objects for an expensive PR game; it’s thinking strategically when deploying capital. That long-term thinking, when coupled with its impressive dividend yield, makes this oil stock a buy for investors committed to the long haul. 

Top Stocks To Invest In 2019: Eli Lilly and Company(LLY)

On Feb. 9, LLY dropped to a three-year low. Since then, it’s risen 16%. That climb moved the stock to trading higher than its 50-day and 200-day moving averages.

That sort of momentum – pushing it above its moving averages – is a sign the stock is heading even higher.

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In fact, the trend lines just formed a "golden cross," one of the most bullish technical indicators investors can use. In a golden cross, the 50-day moving average rises higher than the 200-day moving average, a classic bullish sign.

The last time that happened was in February 2017 when LLY was in the midst of a killer rally that sent the market up 35% over a five-month stretch.

It gets even better. Short interest grew 20% over the past month, which means a short squeeze could push the stock even higher if the rally continues.

Given that all the signals are indicating more upside, Chris has a price target on LLY of $90 per share. That’s slightly above the highs of October and December. That move might give a double if investors play the $85 call with an Aug. 17, 2018 expiration.

But LLY isn’t the best healthcare stock on our list…

Best Medical Stocks To Buy Right Now

Unfortunately, America’s obesity epidemic continues to deteriorate, as more and more children and adults are becoming obese. Meanwhile, more information is emerging about the dangers of obesity.

In addition to heart disease and diabetes, scientists increasingly agree that obese people are more likely to get cancer, which in many cases spells a death sentence. Against this background, it’s worth looking at several companies and stocks that are likely to benefit by helping people combat this worsening trend.

Best Medical Stocks To Buy Right Now: TripAdvisor, Inc.(TRIP)

TripAdvisor’s (NASDAQ:TRIP) 62% spike makes it the fifth-best performer on the S&P 500 to date. The travel booking giant has delivered plenty of good news to investors lately. In February it announced that it had ended a brutal streak of profitability declines in its core hotel booking business even as management promised stronger earnings ahead. Executives delivered on that goal with a solid first-quarter report that sent shares soaring by 39% in May. To keep the good times rolling, TripAdvisor will need to show that it can sustain its sales growth even as it slashes spending in key areas like marketing.

Best Medical Stocks To Buy Right Now: ABIOMED, Inc.(ABMD)

Medical device specialist Abiomed (NASDAQ:ABMD) has seen its shares more than double this year. The company, which focuses on heart pumps, logged 40% sales growth in the first quarter and 34% gains in the second quarter. Both periods were marked by sharp global demand gains for its Impella pumps, along with surging profitability. Yet investors are even more excited about the future, given the low penetration of its products in major international markets like Germany and Japan. Abiomed also has a growing pool of patents that could extend its competitive lead in this key medical niche in the coming years.

Best Medical Stocks To Buy Right Now: Adobe Systems Incorporated(ADBE)

Cloud giant Adobe Systems Incorporated (NASDAQ:ADBE) has long been one of my favorite stocks in the market.

This is a 20%-plus revenue growth, 20%-plus earnings growth company with a ton of visibility due to secular growth tailwinds in cloud adoption and mitigated competition in the professional creative solutions space. That lack of competition also gives Adobe a big runway for price hikes, which creates a powerful long-term margin expansion narrative.

That being said, Adobe stock got slightly ahead of itself from a valuation perspective in mid-June when it was trading above $250. That is why the stock dropped after the Q2 earnings report, despite strong numbers. The valuation was just too big, and needed to normalize lower.

Adobe stock dropped. Then it hit its 50-day moving average, which has served as a strong support for this stock for the past several years. Adobe stock bounced off that 50-day moving average, and is now back to rally mode.

This rally will persist because nothing is wrong with the growth narrative at Adobe. The stock just dropped due to valuation. It came back down, tested a key technical level, and is now rallying again. Thus, July could be a big month for this cloud giant.

Top 5 Casino Stocks To Buy Right Now

While the oil price rally has been a major catalyst driving up oil stocks this year, it wasn’t the only factor. Another common one is that oil companies are beginning to return more cash to shareholders, primarily by repurchasing shares, which has acted like lighter fluid for oil stocks. That catalyst could continue playing a significant role this year, which is why investors should consider oil stocks that have big-time share repurchase programs underway (like this one) since they’ll have more fuel to drive outperformance.

Top 5 Casino Stocks To Buy Right Now: ConocoPhillips(COP)

Higher oil prices have also given ConocoPhillips some extra money to allocate in creating value for its investors this year. Not only did the company increase its dividend by 7.5%, but it also now expects to buy back $2 billion in stock this year, which is an increase of $500 million from its initial plan. On top of that, the company expects to hit its debt reduction target more than a year ahead of schedule. Meanwhile, ConocoPhillips has also been allocating capital toward future growth by acquiring land in two emerging shale plays and buying out its partner in Alaska. These initiatives set the oil giant up for continued success in 2018 and beyond.

Top Energy Stocks To Own For 2019

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When considering valuation metrics, price-to-earnings ratio has always been the obvious choice as calculations based on earnings are easy and come in handy. However, price-to-sales has emerged as a convenient tool to determine the value of stocks that are incurring losses or are in an early cycle of development, generating meager or no profits.

While a loss-making company with a negative price-to-earnings ratio falls out of investor favor, price-to-sales could indicate the hidden strength of its business. This underrated ratio is also used to identify a recovery situation or ensure that a company’s growth is not overvalued.

A stock’s price-to-sales ratio reflects how much investors are paying for each dollar of revenues generated by the company.

If the price-to-sales ratio is 1, it means that investors are paying $1 for every $1 of revenues generated by the company. So, it goes without saying that a stock with a price-to-sales below 1 is a good bargain, as investors need to pay less than a dollar for a dollar’s worth.

Thus, a stock with a lower price-to-sales ratio is a more suitable investment versus a stock with a high price-to-sales ratio.

Price-to-sales is often preferred over price-to-earnings as companies can manipulate their earnings using various accounting measures. However, sales are harder to manipulate and are relatively reliable.

However, one should keep in mind that a company with high debt and low price-to-sales is not an ideal choice. The high debt level will have to be paid off at some point, leading to further share issuance and a rise in market cap and ultimately a higher price-to-sales ratio.

In any case, the price-to-sales ratio used in isolation can’t do the trick. One should also analyze other ratios like Price/Earnings, Price/Book and Debt/Equity before arriving at any investment decision.