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.
With that said, low-priced stocks can still be attractive to investors as they present the chance to take a larger position in a company, which they might not be able to in higher-priced stocks. 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 five stocks that are currently trading for under $10 per share. All of these stocks also sport a Zacks Rank #2 (Buy) or better, and are showing signs of outpacing the market.
Check out these five great stocks under $10 to buy right now:
1. The Meet Group, Inc. MEET
Prior Close: $5.23 USD
The Meet Group is a social media company offering several different social entertainment apps, including MeetMe, Skout, and Lovoo. These apps are primarily focused on streaming video, mobile chat, gifting, and photo sharing. MEET is coming off a fiscal 2018 that saw its revenue surge 44%. The firm also put together a solid year in terms of earnings beats, and its shares have skyrocketed 175% over the last 12 months.
Despite the climb, MEET still looks pretty cheap at the moment, trading at 15X forward 12-month Zacks Consensus EPS estimates, which marks a discount compared to its industry's 27X average. The company’s adjusted first-quarter earnings are projected to soar 80% on the back of roughly 27% revenue growth. And the company’s positive earnings estimate revision activity recently helps it earn a Zacks Rank #2 (Buy).
2. AudioEye, Inc. AEYE
Prior Close: $9.10 USD
AudioEye is a cloud-based digital accessibility company. In short, it works with other firms that are looking to make their own websites and online platforms accessible and usable to use for people with disabilities. For instance, AudioEye can help make a website controllable through voice commands, so that people who might not be able to use a keyboard and mouse can have the complete experience of that web-page. The Tucson Arizona-based firm’s Q4 revenues jumped 103% to a record $1.78 million.
Clearly, AudioEye is an extremely small company, with a market cap of $71.14 million. Still, looking ahead, AEYE is projected to see its current full-year revenue jump 95% to $11.02 million, based on our Zacks Consensus Estimate. Meanwhile, its adjusted fiscal 2019 earnings are expected to surge nearly 50%. Peeking further ahead, the company’s 2020 EPS figure is projected to soar 97% above our current year estimate as it races toward positive earnings. AEYE is a Zacks Rank #2 (Buy) at the moment.
3. Digital Turbine, Inc. APPS
Prior Close: $3.63 USD
Digital Turbine is coming off a fiscal third quarter that saw it top earnings and revenue estimates. The company operates in our Internet – Software industry and its business tries to connect OEMs, mobile operators, and publishers with advertisers and app developers. APPS’ positive earnings revision activity helps it earn a Zacks Rank #1 (Strong Buy) right now. Plus, Digital Turbine’s price/sales ratio of 2.93 falls well below its industry’s 4.17 average.
The Austin, Texas-based company is expected to swing from an adjusted loss of $0.01 per share in the year-ago period to earnings of $0.02 a share in its fourth quarter of fiscal 2019, for a 300% expansion. Digital Turbine’s bottom-line expansion is expected to be supported by 26.7% revenue growth in Q4. And the company’s sky-high earnings growth is projected to continue in the following quarter and the coming fiscal year, with its adjusted full-year EPS figure expected to be up 240% and then jump 67% above that in 2020.
4. Telenav, Inc. TNAV
Prior Close: $ 5.77 USD
Telenav provides connected car and location-based services and saw 1.3 million vehicles equipped with its technology enter the global market last quarter. The company works with companies such as General Motors GM and Toyota TM. Investors might also be happy to note that Telenav earlier this year announced a partnership with Amazon AMZN to bring its widely popular Alexa voice assistant technology to Telenav’s navigation system offerings.
TNAV stock has soared 47% in 2019 and the company’s positive earnings estimate revision activity helps it sport a Zacks Rank #2 (Buy). Telenav is expected to see its current-quarter revenue skyrocket 269% to $51.01 million, to help lift its adjusted earnings by 78.3%. Meanwhile, the connected car tech firm’s full-year EPS climb is projected to surge roughly 76%, with its top-line expected to soar 101.7% to reach $214.17 million. The company also rocks “A” grades for Growth and Momentum and has a P/S ratio of 1.88, which falls below some of its peers.
5. Radiant Logistics Inc. RLGT
Prior Close: $ 6.44 USD
Radiant Logistics is a global transportation and supply chain management firm that operates everything from retail sector white-glove delivery services to heavy machinery transportation. Shares of RLGT have soared over 50% so far this year and the company is part of the Transportation – Air Freight and Cargo industry that rests in the top 7% of our 256 Zacks industries at the moment.
Radiant is a Zacks Rank #2 (Buy) right now and boasts “A” grades for Value and Growth in our Style Scores system. Plus, the company is trading at a forward P/E of 13.1, which comes in below the S&P’s 17.1X average. The company is also expected to see its adjusted current-year earnings surge 60% on the back of 15.2% revenue growth. Meanwhile, the company’s full-year revenues are projected to pop 13.5%, with earnings expected to soar 62%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
MeetMe, Inc. (MEET) : Free Stock Analysis Report
Digital Turbine, Inc. (APPS) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Toyota Motor Corporation (TM) : Free Stock Analysis Report
Radiant Logistics, Inc. (RLGT) : Free Stock Analysis Report
Telenav, Inc. (TNAV) : Free Stock Analysis Report
Audioeye, Inc. (AEYE) : Free Stock Analysis Report
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