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.
Today we've highlighted five stocks that are currently trading for under $10 per share. These stocks are also showing signs for solid growth in 2017, and all of them currently hold a Zacks Rank #1 (Strong Buy).
1. Codexis, Inc. ( CDXS )
Prior Close: $4.60
Codexis is a protein engineering company that applies its technology to the development of biocatalysts for the commercial manufacture of pharmaceuticals and fine chemicals. While analysts expect Codexis to remain a loss-making company in 2017, we have seen one positive earnings estimate revision for the year and current estimates would represent sales growth of 12.88% and EPS growth of 64.29%.
2. EMCORE Corporation ( EMKR )
Prior Close: $8.70
Emcore is a provider of compound semiconductor-based products for the broadband, fiber optic, satellite, and terrestrial solar power markets. After ending 2016 with a month that saw the stock gain over 30%, the company is looking to continue its momentum in 2017. Right now, our consensus estimates for the year would represent sales growth of 8.11% and EPS growth of 14.71%.
3. Intevac, Inc. ( IVAC )
Prior Close: $8.55
Intevac is a supplier of static sputtering systems and related manufacturing equipment used to manufacture thin-film disks for computer hard disk drives. This stock gained nearly 82% in 2016, and its projected growth metrics suggest that it continue climbing this year. Our current consensus estimates would represent sales growth of 27.00% and earnings growth of 103.91%. In fact, Intevac is projected to post an annual profit in 2017.
4. Organovo Holdings ( ONVO )
Prior Close: $3.39
Organovo Holdings is a three-dimensional biology company focused on delivering breakthrough bioprinting technology and creating tissue on demand for research and medical applications. This is an incredibly innovative field, and Organovo looks poised to become a leader in the industry soon. For its fiscal year that ends in March, the company is expected to post sales growth of 264.96%. Sales growth for the fiscal year that ends in March 2018 is expected be nearly 100%.
5. StarTek, Inc. ( SRT )
Prior Close: $8.45
StarTek is a global provider of process management services and owns and operates branded vertical market Internet web sites. StarTek was another one of 2016's biggest success stories, as the stock gained nearly 120% on the year. The company is poised for another solid year with consensus estimates that project sales growth of 6.21% and earnings growth of 660%.
A stock's market price is certainly not the most important factor to consider when considering whether or not to add it to your portfolio, and sales and earnings growth projections can prove to be tough to live up to. Nevertheless, we can use Zacks' proven methods of finding quality stocks, and these five companies just happen to be showing strength while also trading for under $10 per share. If you would like to check out more of these low-priced stocks, look no further than our Stocks Under $10 portfolio service!
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report INTEVAC INC (IVAC): Free Stock Analysis Report EMCORE CORP (EMKR): Free Stock Analysis Report STARTEK INC (SRT): Free Stock Analysis Report CODEXIS INC (CDXS): Free Stock Analysis Report ORGANOVO HLDGS (ONVO): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research