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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.

1.       Legal & General Group (LGGNY)

Prior Close: $16.72

Legal & General is a British financial services company offering products such as life insurance, general insurance, pensions, and investments. The company is leading a multi-line insurance industry that currently sits in the top 34% of the Zacks Industry Rank, and the stock has displayed its own individual strength recently. LGGNY currently sports an “A” grade for Value and an overall VGM score of “B.” Furthermore, it has seen one positive estimate revision within the past 60 days, and analyst coverage has been favorable—Goldman Sachs recently raised its price target to $24 from $22.


2.       Mobile TeleSystems (MBT)

Prior Close: $9.67

Mobile TeleSystems is the largest mobile operator in Russia and the Commonwealth of Independent States, with well over 100 million customers in the region. While the Russian economy is struggling, the company’s market share puts it in a strong position to benefit from any upturn. Furthermore, it has always been the best Russian dividend play, yielding nearly 7% right now. The stock currently has an “A” grade for Value, as well as a “B” grade for Growth and an overall VGM score of “B.”


3.       Nomura Holdings (NMR)

Prior Close: $6.18

Nomura Holdings is a Japanese financial services company that provides brokerage, trading, underwriting, M&A advising, and other financial products. With “B” grades for Value and Growth, the stock is an interesting trend-based pick. Based on current estimates, EPS is expected to grow by more than 10% over the next 3 to 5 years, and the stock’s PEG, P/E, and P/B ratios all best the industry average. Furthermore, the stock has an overall VGM grade of “A.” Currency headwinds may pose challenges for the company, but the stock looks ready to rally regardless.


4.       Alpha and Omega Semiconductor (AOSL)

Prior Close: $18.98

Alpha and Omega Semiconductor is a developer of power semiconductors that are used in high-end market applications, such as notebooks, flat panel displays, and battery packs. Shares are surging after the company outperformed the Zacks Consensus Estimate by 600% in its latest earnings report, and after three positive revisions in the past week, current full-year estimates are calling for EPS growth of more than 650%. The stock currently has an “A” grade for Momentum and an overall VGM score of “B.”


5.       Black Diamond (BDE)

Prior Close: $5.80

Black Diamond, formerly known as Clarus Corporation, makes outdoor recreation equipment and active lifestyle products, such as rock-climbing equipment, backpacks, and skis. The stock is moving higher following a solid earnings report, and consensus estimates point to EPS growth of 88% this quarter and 280% this year. Overall, the leisure products industry is surging thanks to the strength of the economy; this group of businesses currently sits in the top 17% of the Zacks Industry Rank. We can also see that this stock has an “A” grade for Growth and an overall VGM score of “B.”


6.       RWE AG (RWEOY)

Prior Close: $16.87

RWE AG is a German electric generation and transmission company that is among the five largest utilities companies in Europe. With solid Style Scores across the board, including an “A” for Value and an overall VGM grade of “A,” this stock is clearly fundamentally sound. Also, we have seen two positive revisions for its full-year earnings within the past 60 days. Despite its relative size, our current consensus estimates call for EPS growth of more than 40% and sales growth of nearly 10% this quarter. Investors will hope this stock can break into a new range and continue the momentum that has seen it gain 20% over the past 12 weeks.


7.       Commercial Vehicle Group (CVGI)

Prior Close: $9.25

Commercial Vehicle Group is a provider of interior and vision safety systems for the global commercial vehicle industry. The company is coming off another solid quarter, as it has now surpassed the Zacks Consensus Estimate for earnings by an average of 161% in each of the trailing four quarters. Our full-year consensus estimate has moved up 12 cents in the past week, and we now expect to see EPS growth of more than 40% this year. Also, the fundamental strength of the stock is underscored by its “A” grades for Value and Momentum, as well as its overall VGM score of “A.”


8.       Kemet Corporation (KEM)

Prior Close: $13.69

Kemet and its subsidiaries are among the largest manufacturers of solid tantalum capacitors and ceramic capacitors in the world. Tantalum and ceramic capacitors are the two fastest growing sectors of the United States capacitor industry. Also, the miscellaneous electronics industry is in the top 27% of the Zacks Industry Rank right now. The company most recently surpassed the Zacks Consensus Estimate for earnings by four cents, and share prices are surging. Continued strength could result in this stock breaking into a new range.


9.       Lantheus Holdings (LNTH)

Prior Close: $16.20

Lantheus Holdings is a developer of medical imaging agents and products for diagnosis of cardiovascular and other diseases. The company recently surpassed the Zacks Consensus Estimate for earnings and has now beaten these expectations by an average of 118% in each of the trailing four quarters. Earnings per share are expected to grow at a rate of 12% over the next three to five years. Furthermore, this stock is currently sporting “B” grades for Value and Momentum, as well as an overall VGM score of “B.”


10.   Rocky Brands (RCKY)

Prior Close: $14.90

Rocky Brands is a leading footwear and apparel maker, and its portfolio includes brands such as Durango, Lehigh, Dickies, and Georgia Boot. The stock has swept the board in our Style Scores system, posting “A” grades for Value, Growth, Momentum, and VGM. Shares of moved more than 33% higher over the past 12 weeks, and a recent earnings beat of nearly 43% is helping the stock move even higher.


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RWE AG (RWEOY): Free Stock Analysis Report
Commercial Vehicle Group, Inc. (CVGI): Free Stock Analysis Report
Alpha and Omega Semiconductor Limited (AOSL): Free Stock Analysis Report
Kemet Corporation (KEM): Free Stock Analysis Report
Nomura Holdings Inc ADR (NMR): Free Stock Analysis Report
Black Diamond, Inc. (BDE): Free Stock Analysis Report
Lantheus Holdings, Inc. (LNTH): Free Stock Analysis Report
Rocky Brands, Inc. (RCKY): Free Stock Analysis Report
Mobile TeleSystems OJSC (MBT): Free Stock Analysis Report
Legal & General Group PLC (LGGNY): Free Stock Analysis Report
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