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. 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.
1. Zynga Inc. ZNGA
Prior Close: $6.39 USD
Zynga is a mobile video game firm that boasts titles from FarmVille to Words With Friends. ZNGA shares have skyrocketed nearly 60% in 2019 and the company just recently raised its full-year revenue and bookings targets after it posted stronger-than-projected Q2 revenue results. The San Francisco-headquarter firm is also ready to roll out new games, which include strategic licenses offerings such as Game of Thrones and Harry Potter. Zynga in June also launched a team-based battle royale game on Snapchat’s SNAP relatively new Snap Games platform. And our current Zacks Consensus Estimates call for ZNGA’s adjusted full-year earnings to soar roughly 190% from $0.08 to $0.23 per share on the back of 51.3% revenue growth that would see it hit $1.47 billion. ZNGA is currently a Zacks Ranks #2 (Buy).
2. Sandstorm Gold Ltd SAND
Prior Close: $6.47 USD
All three major U.S. indexes took a hit Friday after President Trump announced Thursday that the U.S. government will impose 10% tariffs on a new set of Chinse goods starting in September. Therefore, it might be time to dive into some gold, or if not, a gold mining-focused operation. Sandstorm is a gold royalty company that provides upfront financing to gold mining companies. The firm then receives the right to a percentage of the gold produced for the lifetime of that mine. SAND stock is up 48% over the last 12 months to crush the S&P 500’s 3% climb. Sandstorm Gold’s fiscal 2019 EPS is projected to surge 100%, with 2020 expected to come in 67% higher. Meanwhile, SAND’s full-year 2019 revenue is projected to jump 26%. Sandstorm Gold is a Zacks Rank #2 (Buy) at the moment that sports a “B” grade for Growth in our Style Scores system.
3. Digital Turbine, Inc. APPS
Prior Close: $5.58 USD
Digital Turbine operates in our Internet – Software industry and its business aims to connect OEMs, mobile operators, and publishers with advertisers and app developers. APPS’ positive earnings estimate revision activity helps it earn a Zacks Rank #2 (Buy). Digital Turbine also holds an “A” grade for Growth in our Style Scores system. The Austin, Texas-based company, which is scheduled to release its Q1 2020 financial results on Monday, August 5, has seen its stock price soar 208% in 2019. APPS’ Q1 EPS is projected to jump from a loss of $0.01 in the year-ago quarter to +$0.02 a share, on 28.4% revenue expansion. Plus, Digital Turbine’s full-year earnings are projected to surge over 62% on 22% top-line growth.
4. New York Mortgage Trust, Inc. NYMT
Prior Close: $6.09 USD
New York Mortgage Trust is an internally managed real estate investment trust that invests in residential mortgage loans. This REIT currently pays an annualized dividend of $0.80 per share, with an impressive 13.1% yield. New York Mortgage Trust is currently a Zacks Rank #2 (Buy) that is set to release its second-quarter 2019 financial results after the market closes on August 5. Our current estimates call for NYMT’s revenue to surge 88% to $32.90 million in Q2, with full-year fiscal 2019 revenue projected to jump 73.5% to $136.6 million. Peeking further down the road, New York Mortgage Trust’s 2020 revenue is expected to climb 27% higher than our current-year projection to $173.7 million.
5. ADT Inc. ADT
Prior Close: $6.08 USD
ADT is a security and automation solutions firm geared toward homes and businesses that operates mostly in the U.S. and Canada. The Boca Raton, Florida-based firm will report second-quarter earnings results after the close of trading on Tuesday, August 6. ADT pays an annualized dividend of $0.14 per share, with a yield of 2.30% at the moment. ADT also currently boasts “A” grades for Value and Growth in our Styles Scores system, along with a #2 (Buy) ranking. The company is projected to see its quarterly earnings soar from a loss of $0.07 in the prior-year period to reach +$0.16 per share on 10.7% revenue growth to reach $1.25 billion. Similar growth trends are projected for the full-year fiscal 2019.
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Zynga Inc. (ZNGA) : Free Stock Analysis Report
Snap Inc. (SNAP) : Free Stock Analysis Report
Digital Turbine, Inc. (APPS) : Free Stock Analysis Report
Sandstorm Gold Ltd (SAND) : Free Stock Analysis Report
New York Mortgage Trust, Inc. (NYMT) : Free Stock Analysis Report
ADT Inc. (ADT) : Free Stock Analysis Report
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