Top Ten Stocks Under $20

Stocks have struggled for direction over the past few months, and that presents a certain amount of risk to investors right now. But those willing to meet that risk have watched valuations shrink and per-share price tags diminish, which could mean new buying opportunities for those with specific strategies.

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. These stocks currently have seen positive earnings estimate revisions, and a variety of other factors make these companies stand out as having strong upside potential.

1. Cleveland-Cliffs (CLF - Free Report)

Prior Close: $9.59

Cleveland-Cliffs is an iron ore mining company and key supplier of iron ore pellets to the steel industry. The firm’s CEO recently made negative headlines for lashing out at analysts, but that doesn’t necessarily change the fundamentals here. CLF sports a Zacks Rank #2 (Buy) and an “A” grade in the Value category of our Style Scores system. Earnings are expected to improve a whopping 248% this year, and estimates have moved up for next year, but investors are undervaluing the stock at just 5.3x forward 12-month earnings.

2. AVX Corporation (AVX - Free Report)

Prior Close: $16.67

AVX is a global supplier of electronic components, primarily capacitors, and connectors used in the automotive, mobile phone, and medical industries. The firm is majority owned by Kyocera and is a member of the Russell 2000. AVX holds a #1 (Strong Buy) coming off its impressive earnings beat, and growth prospects now look better than ever. In fact, earnings are projected to expand by 59% and 79% in the next two quarters. Plus, with a P/E of 11.4 and a P/S of 1.6, AVX looks to be reasonably priced.

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