At Zacks, we try to avoid labeling stocks as “cheap” or “expensive.” Instead, we look beyond face value, and our system puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.
Cheap or less expensive stocks are often more volatile and can be more speculative than stocks that trade at higher prices. Nonetheless, stocks that trade for $20 and under can still be attractive to investors for many reasons, and they present the chance to take a larger position in a company.
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 10 stocks that are currently trading for under $20 per share that investors might want to buy heading into September.
Barrick Gold Corporation GOLD
Prior Close: $19.77 USD
Shares of Barrick Gold have soared nearly 50% in 2019 and 70% in the last three months, with gold prices currently resting over $1,500. Barrick’s jump comes as investors pour into safe-haven assets as the global economic picture becomes more unstable. Barrick’s gold mining operations and projects are spread across 15 countries, and the firm is a dividend payer. Our current Zacks Consensus Estimates call for its Q3 earnings to soar 88% on 28% higher revenue, which is projected to help push fiscal 2019 earnings up 54% on 22.3% stronger sales. Barrick’s positive earnings estimate revision activity also helps it earn a Zacks Rank #2 (Buy) at the moment.
Danone S.A. DANOY
Prior Close: $17.82 USD
Danone is a food and beverage brand that sells everything from Evian water to Silk milks and its namesake yogurts. DANOY shares have soared over 27% in 2019 and have easily outpaced the broader food market’s 6% decline over the last two years, up 12%. Danone is also a dividend payer, with a strong 1.92% yield at the moment. 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 that also hold a “B” grade for Growth.
Digital Turbine, Inc. APPS
Prior Close: $7.22 USD
Digital Turbine connects OEMs, mobile operators, and publishers with advertisers and app developers. Digital Turbine is a Zacks Rank #1 (Strong Buy) right now and sports an “A” grade for Growth in our Style Scores system. Shares of the Austin, Texas-based firm have soared over 400% from $1.40 in August 2018 to its current price of over $7.00 a share. Looking ahead, Digital Turbine’s fiscal-year—which ends in March—earnings are projected to skyrocket from $0.08 to $0.20 per share on 26.4% higher revenue.
NeoPhotonics Corporation NPTN
Prior Close: $6.14 USD
NeoPhotonics makes components for high-speed communications networks and holds a Zacks Rank #2 (Buy) at the moment, along with an “A” grade for Growth. This San Jose, California-based firm has seen its stock price jump 73% in the last three months. Our Zacks Consensus Estimates call for NeoPhotonics’ current-quarter EPS figure to jump from a loss of $0.05 per share in the year-ago period on 10% higher revenues. This positivity on both the top and bottom lines is projected to continue next year as well.
Prior Close: $4.94 USD
NOK, which holds a market cap of over $27 billion, is a Zacks Rank #2 (Buy) that rocks a “B” grade for Value and an “A” for Momentum. Nokia is coming off a better-than-projected second quarter, highlighted by its software and enterprise unit, as well as the expansion of its IP routing business. The network and telecommunications equipment firm also noted that it has continued to improve its 5G position that currently includes 45 commercial 5G deals and nine live networks. Nokia’s current-year earnings are expected to come in flat, but its 2020 EPS figure is expected to soar 62% above 2019 on 4.5% higher revenue.
First Horizon National Corporation FHN
Prior Close: $15.36 USD
Shares of this regional banking, wealth management, and capital market services firm have climbed 12% over in the past three months, while its broader industry slipped 6%. First Horizon National holds a Zacks Rank #2 (Buy) right now, after its earnings estimate revision picture turned far more positive following its Q2 earnings release. FHN also boasts “A” grades for Value and Momentum and its 2019 EPS figure is projected to climb roughly 13% on 5.1% higher sales. Furthermore, First Horizon’s 2.0 price/sales ratio represents an impressive discount against to its industry’s 2.7 average. FHN also pays an annualized dividend of $0.56 a share, along with an strong 3.65% yield.
Ballard Power Systems Inc. BLDP
Prior Close: $4.36 USD
Ballard Power Systems is a Vancouver, Canada-headquartered firm that builds fuel cell products that aim to reduce customer costs and risks. Ballard’s 12-month order book surged 66% to $126.7 million at the end of the second quarter. BLDP stock has soared 86% in 2019 to crush its industry’s 17% average. Ballard’s full-year fiscal 2019 earnings and revenue are expected to come in flat. However, Ballard’s 2020 sales are projected to soar 40.1% over our current-year estimate to reach $135.6 million, with EPS projected to climb 54%. Ballard is a Zacks Rank #2 (Buy), with “B” grade for Momentum.
JetBlue Airways Corporation JBLU
Prior Close: $16.55 USD
JetBlue stock popped Wednesday after Deutsche Bank analysts said the airline stock’s recent dip helps set up a buying opportunity. JBLU is a Zacks Rank #2 (Buy) right now that earns “A” grade across our Style Scores board. The firm is trading at a significant discount compared to its industry in terms of both forward earnings and sales. JetBlue’s fiscal 2019 and 2020 revenue are projected to climb 7.1% and 7.9%, respectively. Better still, JBLU’s 2019 earnings are projected to surge 31%, with an additional 22% bottom-line growth expected in 2020. Plus, JetBlue plans to start its “European service” in 2021, with flights from Boston and New York to London.
New York Mortgage Trust, Inc. NYMT
Prior Close: $6.16 USD
New York Mortgage Trust is an internally managed real estate investment trust that invests in residential mortgage loans. NYMT shares have moved mostly sideways over the last three years and are up roughly 5% in 2019, against the broader real estates market’s 19% climb. Still, the stock has hardly tanked, which makes its whopping 13% dividend yield all the more impressive. NYMT is currently a Zacks Rank #2 (Buy), with a $1.4 billion market cap. This REIT’s Q3 2019 revenue is projected to skyrocket 96%, with full-year revenue excepted to surge 73.5% from $78.7 million to $136.6 million.
Vipshop Holdings Limited VIPS
Prior Close: $7.90 USD
Vipshop is a Guangzhou, China-based discount e-commerce retailer that sells popular branded products, from the likes of Nike and more regional-specific companies. Shares of VIPS have soared 31% since the company posted its Q2 financial results on August 15. The firm saw its active customers jump 11% to 33.1 million, with total orders up 33%. Vipshop stock has also climbed 16% during the last 12 months and its post-second quarter earnings revision activity helps it earn a Zacks Rank #2 (Buy). VISP also boasts an overall “A” VGM score and its full-year EPS figure is projected to soar 40%, with 2020 expected to come in nearly 25% higher.
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JetBlue Airways Corporation (JBLU) : Free Stock Analysis Report
Digital Turbine, Inc. (APPS) : Free Stock Analysis Report
Vipshop Holdings Limited (VIPS) : Free Stock Analysis Report
NeoPhotonics Corporation (NPTN) : Free Stock Analysis Report
Nokia Corporation (NOK) : Free Stock Analysis Report
First Horizon National Corporation (FHN) : Free Stock Analysis Report
Ballard Power Systems, Inc. (BLDP) : Free Stock Analysis Report
Danone (DANOY) : Free Stock Analysis Report
Barrick Gold Corporation (GOLD) : Free Stock Analysis Report
New York Mortgage Trust, Inc. (NYMT) : Free Stock Analysis Report
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