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Wall street has grown even more bullish of late in anticipation of increased government spending under the Biden administration and a return to national economic health with an accelerated coronavirus vaccine rollout. While many stocks are riding very high price-wise, not all are. On close examination, there are several high-quality stocks that are still trading at affordable prices and could yield high returns.

While investing in low-priced stocks is typically riskier than investing in large-cap companies, the potential returns from some of these companies more than offset the investment risks. In fact, taking a position in stocks at affordable prices can benefit an investor significantly from the company’s long-term growth.

We think Alliance Resource Partners (ARLP), Rimini Street, Inc. (RMNI), and Orion Group Holdings, Inc. (ORN) are three such stocks. They have been trading at less than $10 despite witnessing a solid run over the past year. These companies have proven to have efficient business models and the required fundamental strength to continue driving the performance of their stocks.

Alliance Resource Partners (ARLP)

ALRP produces and markets coal to enterprise and industrial consumers in the U.S. The company has coal mines in Kentucky, Maryland, Indiana, Illinois, and West Virginia. ALRP’s stock has gained 91.3% over the past six months to close Friday's trading session at $6.12.

The company recently opened a new mining operation in Appalachia. It has also booked commitments for the supply of 9.9 million tons of coal until 2025. For the quarter ended Dec. 31, 2020, ALRP reported an increase in revenue of 3.1% sequentially. Its EBITDA rose 28.8% during the same period.

ARLP is expected to see a revenue growth of 26.9% for the quarter ended Mar. 31,2021 and 14.7% in 2021. Its EPS is estimated to grow 15.9% in 2021 and at a rate of 13.6% per annum over the next five years.

The POWR Ratings are also high for ARLP. It has an Overall Rating of A, which translates to a Strong Buy. The POWR Ratings are calculated by considering 118 different factors, with the weighting of each optimized to improve overall performance. In total, we rate ARLP on eight different levels. Beyond what we stated above, we also have given ARLP grades for Stability, Value, Momentum, and Growth. Get all the ARLP ratings here.

Rimini Street, Inc. (RMNI - Get Rating)

RMNI delivers software support services to enterprise clients. The company’s services include support for PeopleSoft, Oracle Database, Oracle Retail, Hyperion, and many others. RMNI’s stock has returned 79.3% over the past year to close Friday’s trading session at $8.51.

RMNI recently became an approved supplier in New Zealand’s open marketplace. This means new clients there can more easily obtain RMNI’s services without incurring the cost of negotiating their own contract. Also of note, Pulse Electronics, a leading provider of automotive components, recently signed with RMNI to provide SAP software support services.

For the quarter ended Sept. 30, 2020, RMNI reported an increase in revenue of 19.3% year-over-year. The company’s calculated billings were up 33.3% during the same period. RMNI’s revenue is estimated to increase 9.4% for the quarter ended Dec. 31, 2020 and 13.7% in 2021. Its EPS is expected to rise 20.8% in 2021 and at the rate of 15% per annum over the next five years.

It’s no surprise that RMNI has an overall rating of A, which equates to Strong Buy in our POWR Ratings system. RMNI has an A grade for Quality. In the 60-stock Software – Business industry, it is ranked #2. Click here to see the additional POWR Ratings for RMNI (Growth, Value, Stability, Momentum, and Sentiment).

Orion Group Holdings, Inc. (ORN)

ORN is a marine infrastructure contractor that services the civil marine industry. The company has operations in the U.S., Canada, and the Caribbean. ORN’s stock price has increased 23.2% over the past year to close Friday’s trading session at $6.11.

ORN recently announced that it had been awarded contracts totaling $27 million. The company also recently elected Austin J. Shanfelter as the chair of its board of directors as a part of the company’s board refreshment process.

For the quarter ended Sept. 30, 2020, the company’s operating income increased 114% versus the same period last year. Its EBITDA increased 14% during the same period. ORN’s revenue is expected to grow 1.7% for the quarter ended Mar. 31, 2021. Its EPS growth is expected to be 700% for the quarter ended Dec. 31, 2020.

ORN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which equates to Strong Buy in our proprietary ratings system. ORN has an A grade for Sentiment and Value. In the B-rated, 86-stock Industrial – Services industry, it is ranked #2. Beyond what we stated above, we also have given ORN a grade for Growth, Quality, Stability, and Momentum. Get all the ORN ratings here.

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