Top 10 Stocks Under $20

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 ten stocks that are currently trading for under $20 per share. All of these stocks currently have a Zacks Rank #1 (Strong Buy), and a variety of other factors make these companies stand out as having strong upside potential. We’ve also spread this list across different sectors and industries so investors looking for low-priced stocks can put together a diverse portfolio or find a stock in their favorite market sector:

1. Lionbridge Technologies ( LIOX )

Current Price: 6.06 / Expected Yearly EPS: 0.52

Lionbridge Technologies is a provider of globalization services to other technology companies worldwide. As the world continues to become more connected, Lionbridge provides software and training to help others adapt to and communicate with other cultures. This stock sticks out in particular because of its recent history of outperforming EPS expectations, beating the Zacks Consensus Estimate by 375% last quarter.

2. Orion Engineered Carbons ( OEC )

Current Price: 18.08 / Expected Yearly EPS: 1.36

Orion Carbons is a Luxembourg-based company that operates as a worldwide supplier of Carbon Black. It produces coatings, printing inks, polymers, and rubber products for a variety of different uses and industries. Investors should take not of recent trends in earnings estimate revisions for OEC, as three positive EPS revisions have been made in the last 60 days, indicating that yearly growth could be more than originally anticipated.

3. Skywest Inc. ( SKYW )

Current Price: 14.60 / Expected Yearly EPS: 1.29

Through its subsidiary, Skywest Airlines, Skywest Inc. operates one of the largest regional airlines in the country. Partnerships with Delta and Continental Airlines to offer connecting flights for the two five Skywest and even further service area, and by keeping costs down the company is often seen as a good “budget” option for travelers. In an industry that is gaining momentum due to lower oil prices, Skywest has been able to crush EPS expectations, beating the Zacks Consensus estimate by 1,000% last quarter. With a value grade of “A” in our Style Scores system and a Forward P/E of 11.43, SKYW could also be a good pick for value investors.

4. Isle of Capri Casinos ( ISLE )

Current Price: 18.31 / Expected Yearly EPS: 1.09

Isle of Capri owns and operates 15 casinos in seven states, with over 13 million customers a year. Isle of Capri Casinos have a unique position in the casino industry, as they don’t own any properties in traditional gambling hotspots like Las Vegas, Atlantic City, or Macau. With revenues slipping in Macau, Isle actually benefits from their smaller markets while other casino stocks drop. Additionally, ISLE stock has scored an “A” score in all three of our Style Score categories, which should serve as a strong indicator that investors need to pay attention to the company now.

5. Garrison Capitol (GARS - Snapshot Report)

Current Price: 15.13 / Expected Yearly EPS: 1.63

Garrison Capitol is a relatively newly-formed business development company that looks to invest in the debt and equity of middle-market companies. GARS is a solid small-cap stock that seems to have room to grow. With a Forward P/E of 9.32, Garrison Capitol has above average value, and 5 positive earnings estimate revisions in the last 60 days imply that analysts see good things in the company’s future.

6. Virco Manufacturing ( VIRC )

Current Price: 2.89 / Expected Yearly EPS: 0.29

Virco is a furniture manufacturing company that produces products for contract and education market throughout the world. Virco furniture can be found in schools, convention centers, government institutions, and churches, amongst many other places. Virco is a strong stock in a strong industry, with furniture companies falling into the Top 3% of the Zacks Industry Rank. A Forward P/E of 10.03 is nearly half of the industry average, meaning Virco sticks out in an area of the market that is already impressive.

7. Photronics Inc. ( PLAB )

Current Price: 9.52 / Expected Yearly EPS: 0.47

Photronics is of one the world’s leading producers of photomasks, which are high-precision quartz plates that contain images of electronic circuits. These photomasks are a piece in the production of computer semiconductors and flat-panel displays. While PLAB’s low price helps it stick out for smaller investors, its “A” grades for value and growth in our Style Scores system also highlight its value and potential.

8. Scorpio Tankers ( STNG )

Current Price: 10.25 / Expected Yearly EPS: 1.08

Scorpio Tankers is a worldwide transporter of oil and other petroleum products. The company generally transports products towards the end of the supply chain, with most of their fleet carrying gasoline and fuel from refineries to end users. As oil supplies remain abundant, the worldwide demand for tankers is high, and with an “A” grade for momentum in our Style Score system, it looks like STNG could be on the upswing right now.

9. Intrawest Resorts ( SNOW )

Current Price: 11.70 / Expected Yearly EPS: 0.09

Headquartered in Denver, Intrawest Resorts functions as an adventure vacation company that offers unique vacation experiences for travelers in a variety of locations. The company is also involved in real estate, marketing properties and condos across the country. Although SNOW’s expected growth this year isn’t too impressive, three positive earnings estimate revisions within the past 60 days indicate that the company could perform quite well going forward.

10. Advanced Emissions Solutions ( ADES )

Current Price: 12.78 / Expected Yearly EPS: 2.26

Advanced Emissions Solutions creates products that are directly marketed to coal-fueled power plants to meet emissions standards. Based in Colorado, the company operates primarily in the United States and is quickly becoming an industry leader. With a Forward P/E of 5.63 crushing the industry average of 53.60, paired with an “A” grade in momentum, ADES looks like it could be a good value pick with growth occurring now.

Bottom Line

A stock’s market price is not a clear indicator of whether it is a good investment. However, the nice thing about the Zacks Rank is that it can be applied to stocks of any price. All of the stocks highlighted here hold a Zacks Rank #1 (Strong Buy) rankings, while also possessing other qualities that help them stick out. For smaller investors looking to get into solid stocks at lower prices, this list is a great place to start and all of these companies could be impressive picks going forward. 

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