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.