Stocking Stuffers: 5 Best Stocks Under $20

‘Tis the season! The holidays are right around the corner, and people around the world are preparing for this most wonderful time of gifting and receiving. While you are scoping out the best deal on a new TV, it can be easy to forget about stocks, but it’s important that you treat also treat your portfolio with a gift this holiday season!

Here at Zacks, we tend to avoid classifying stocks as “cheap” or “inexpensive.” Instead, we have a proven system that is based on earnings estimate revisions to find stocks that will hopefully have our readers seeing green.

That being said, low-priced stocks are often attractive to investors that can’t necessarily afford big stakes in higher priced stocks. Money can be especially tight this time of year, and investors might be interested in these five stocks that are currently trading below $20 per share.

1.       Photronics (PLAB - Snapshot Report)

Photronics is a leading manufacturer of photomasks. Photomasks are quartz plates that contain microscopic images of electronic circuits. These products are a key element in the manufacture of semiconductors and flat panel displays. Based in Brookfield, Connecticut, Photronics operates nine manufacturing facilities, two of which are in Europe, three in Taiwan, one in Korea, and three in the United States.

Photronics has been on a good run as of late, beating the Zacks Consensus Estimate for earnings by an average of 31.13% in the trailing four quarters. Photronics has also seen positive earnings estimate revision activity recently; the consensus estimate for the company’s annual earnings is 9 cents higher than it was a week ago. Grades of “A” for Value and Momentum in our Style Scores system also illustrate the strength of this stock.

2.       Lufthansa (DLAKY - Snapshot Report)

Lufthansa is a German airline operating as an autonomous unit within the Lufthansa Group. It maintains its own stations, check-ins, and ticket sales at basically all of the major international airports. Lufthansa is also the largest airliner in Europe.

Lufthansa has been on an incredible earnings run recently, beating the Zacks Consensus Estimate by an average of 310.59% in the trailing for quarters. We’ve recently seen two positive estimate revisions for the company’s annual earnings, and with a Value Score of “A” and a Forward P/E of 4.67, Lufthansa looks like a solid value pick right now.

3.       Cross Country (CCRN - Snapshot Report)

Cross Country, Inc. is a provider of healthcare staffing services. The company also provides staffing of clinical research professionals, radiology technicians, rehabilitation therapist, and respiratory therapists. To complement its staffing services, Cross Country also provides consulting, education, and trainings resources.

An aging population and the Affordable Care Act have been positives for the healthcare industry overall, and Cross Country has certainly felt the good effects. With a recent earnings beat of 109% and shares up nearly 44% on the year, CCRN has earned “A” scores for Value and Momentum in our Style Scores system. Furthermore, the staffing industry is in the top 3% of the Zacks Industry Rank, and we have seen four positive revisions for Cross Country’s annual earnings within the last 60 days.

4.       JA Solar (JASO - Analyst Report)

JA Solar Holdings is a manufacturer of solar cells. These solar cells are sold to solar module manufacturers who assemble and integrate the cells into modules that convert sunlight into electricity. Based in China, JA Solar is the world’s largest maker of solar cells.

With the ongoing Paris Climate Conference in the headlines and climate change becoming an increasingly talked about issue, the demand for green energy products is only going up. The solar industry is already in the top 12% of the Zacks Industry Rank, and a recent earnings beat of 134.48% and projected sales growth of 11.94% puts JA Solar at the top of the fray. A low Forward P/E of 5.64 and a Value score of “A” also shows that JASO could be a good buy for value-minded investors.

5.       Achillion Pharmaceuticals (ACHN - Snapshot Report)

Achillion is an innovative pharmaceuticals company that develops news treatments for patients with infectious diseases. The company is focused on solutions and cures for the most challenging diseases, including HIV, hepatitis, and resistant bacterial infections. In general, anti-infectious treatments tend to have shorter development cycles than other therapies, meaning Achillion has an interesting market advantage.

Last quarter, Achillion posted a surprise profit and shattered the Zacks Consensus Estimate by 1,400%. With an Earnings ESP of 40%, Achillion is in a good position to beat on earnings in the upcoming quarter as well. Additionally, Achillion fits into the top 28% of the Zacks Industry Rank and holds Style Score grades of “A” for both Growth and Momentum.

Bottom Line

Investors who look for low-priced stocks have a chance to sweeten their holiday season with these five stocks. While the kids unwrap the latest toys and you secretly hope you bought your wife the right color of sheets, your gift could be a swollen portfolio. Regardless, be sure to keep an eye on these companies going forward.

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