Many investors would love to have gotten in on Amazon and Netflix when they were trading for just a few dollars per share. Unfortunately to get in on those stocks today would mean setting aside a sizable percentage of their portfolio. And while some of the biggest stocks on the market today may still have room to go higher, the cost of entry may be an obstacle that is simply too big for an investor of modest means to overcome. But that doesn’t mean there aren’t attractive buys to be found. In fact, a strategy that many investors use is to find a group of stocks that are currently valued under $10 per share. While they can be volatile, they also are the ones that can offer the highest percentage growth. We’re not talking about penny stocks here. There are many companies that are listed on major exchanges that are drawing the attention of analysts. As you know, when analysts start to pay attention, the institutional investors won’t be far behind. This makes now the perfect opportunity for you to do take a look at some low-priced stocks that may be ready to soar in 2019.
Quick Links
- Nokia
- Ericcson
- Blackberry Limited
- Sirius XM
- General Electric
- Trivago
- NIO
- Arcos Dorados
#1 - Nokia (NYSE:NOK)
Nokia (NYSE: NOK) - If the last time you’ve thought about the name Nokia was with the flip phone you got rid of fifteen years ago, you’re not alone. However, after going through an identity crisis, the Finnish telecom company looks like it’s on the way back. It won’t be returning to the smartphone market, but it is an active player in the 5G space. The company recently announced major 5G deals with China Mobile and Tencent Holdings which should start to impact growth in 2019. Plus, it still has licensing deals in place for some Nokia-branded devices that are still on the market. There’s also a lot to like about Nokia’s fundamentals. Their overall operating margin rose from 6.3% to 8%. As of February 25, 2019, their stock YTD is up approximately 6.0% and it is showing 12-month growth of just over 5.0%. The stock also is currently offering a sweet dividend of 3.62%. With a beta value of 1.04, the stock should be trading in close correlation to the market. While this meant that it was not immune to the correction that affected most stocks in October, it should also take part in the market recovery. As of this writing, Nokia’s stock was trading at $6.16 per share.
About Nokia Oyj
Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments: Network Infrastructure, Mobile Networks, Cloud and Network Services, and Nokia Technologies. The company provides fixed networking solutions, such as fiber and copper-based access infrastructure, in-home Wi-Fi solutions, and cloud and virtualization services; IP networking solutions, including IP access, aggregation, and edge and core routing for residential, mobile, enterprise and cloud applications; optical networks solutions that provides optical transport networks for metro, regional, and long-haul applications, and subsea applications; and submarine networks for undersea cable transmission.
Read More - Current Price
- $4.48
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 4 Buy Ratings, 1 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $6.43 (43.4% Upside)
#2 - Ericcson (NASDAQ:ERIC)
Ericcson (NASDAQ: ERIC) - Ericcson was one of the stocks synonymous with the tech bubble of the early 2000s. At its peak, the stock was priced at over $125 per share. Then came the crash. At one point, ERIC’s stock was down to $2 per share. The recovery has never quite come, with a stock price hanging around $8 for the past 15 years. Part of this was due to declining margins and stubborn adherence to a “growth-above-all” mindset that was reminiscent of the dot-com era. But it seems that in late 2018, the company began to see the light, and with it may be forging its way to profits. Aggressive cost cutting along with an increase in revenue not only allowed the company to show an increase in its gross margin, but it also was able to post positive earnings. Ericcson is looking to benefit from the build-out of the 5G network, even as they are winding up their 4G work in China. However, in the telecom industry, cycles are measured in quarters so Ericcson should continue to post increased revenues which along with its cost-cutting should mean solid margins. All of which can point to profits and share price growth.
About Telefonaktiebolaget LM Ericsson (publ)
Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions for telcom operators and enterprise customers in various sectors in North America, Europe, Latin America, the Middle East, Africa, North East Asia, South East Asia, Oceania, and India. It operates in four segments: Networks; Cloud Software and Services; Enterprise; and Other.
Read More - Current Price
- $8.10
- Consensus Rating
- Sell
- Ratings Breakdown
- 0 Buy Ratings, 1 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $6.70 (17.3% Downside)
#3 - Blackberry Limited (NYSE:BB)
Blackberry Limited (NYSE: BB) - The brand that was an icon at the dawn of the smartphone revolution is attempting to reinvent itself as a supplier of security software. So far, the transition is working. The company has forecast software revenue to increase by 8-10% for the fiscal year 2019. Blackberry has settled nicely into a software security niche and in addition to securing end-point devices for phones, tablets, and other internet-connected equipment, the company is also supplying a variety of software security solutions to the auto industry. This is allowing growth through acquisition. One example has been a recent $1.4 billion cash acquisition of Cylance, a machine learning, and AI company. Fundamentally, the company's gross profit margins remain strong at 77%, but they have yet to show a profit as they transition from their old business to something new. So far in 2019, the stock is up over 15% and is currently trading right around $8.75 a share which is off its 12-month low. The company may still have some kinks to work out, but if you've got some cash that you're willing to speculate with, Blackberry may turn out to be a great buy-and-hold stock.
About BlackBerry
BlackBerry Limited provides intelligent security software and services to enterprises and governments worldwide. The company operates through three segments: Cybersecurity, IoT, and Licensing and Other. The company offers CylanceENDPOINT, an integrated endpoint security solution; CylanceGUARD, a managed detection and response solution; CylanceEDGE, an AI-powered continuous authentication zero trust network access solution; CylanceINTELLIGENCE, a contextual cyber threat intelligence service; BlackBerry Dynamics offers a development platform and secure container for mobile applications; BlackBerry Workspaces a secure Enterprise File Sync and Share (EFSS) solution; BlackBerry Messenger (BBM) Enterprise, an enterprise-grade secure instant messaging solution for messaging, voice and video; BlackBerry SecuSUITE is a certified, multi-OS voice and text messaging solution; BlackBerry AtHoc, a secure networked critical event management solution; and BlackBerry unified endpoint management (UEM) solutions.
Read More - Current Price
- $3.91
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 4 Buy Ratings, 5 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $3.60 (7.9% Downside)
#4 - Sirius XM (NASDAQ:SIRI)
Sirius XM (NASDAQ: SIRI) - Investing in a company that has a base of 34 million subscribers and has delivered positive results to shareholders for 10 consecutive years might seem like an obvious choice. However, you’ll have to be a bit contrarian to buy and hold Sirius XM stock, which is one the most shorted stocks on the NASDAQ exchange. There are speculators who are convinced that the technology behind satellite radio is on the way out. But even as the connected car is becoming a reality, Sirius continues to grow its subscriber base. And although the rate of that growth is slowing, it is still growing. There are other reasons to like the stock as well. To begin with, it offers a dividend. And while SIRI’s 0.8% dividend is not much to talk about right now, it’s been growing over the last couple of years, which is an indication that Sirius XM does not expect to be seeing declining revenue in the near future. The company recently completed a merger with Pandora. While an acquisition of this size will certainly choke profits in the short-term, the company is now well positioned to become a player in the streaming audio category, an area that they have struggled to enter. Plus, analysts are convinced that the two companies will be stronger together (i.e. more profitable) and those profits will either be re-invested in more acquisitions or returned to shareholders either with increasing dividend yields or through stock buybacks.
About Sirius XM
Sirius XM Holdings Inc operates as an audio entertainment company in North America. It operates in two segments, Sirius XM, and Pandora and Off-platform. The company's Sirius XM segment provides music, sports, entertainment, comedy, talk, news, traffic and weather channels, and other content, as well as podcast and infotainment services on subscription fee basis; and live, curated, and exclusive and on demand programming services through satellite radio systems and streamed through applications for mobile and home devices, and other consumer electronic equipment.
Read More - Current Price
- $23.13
- Consensus Rating
- Reduce
- Ratings Breakdown
- 4 Buy Ratings, 5 Hold Ratings, 5 Sell Ratings.
- Consensus Price Target
- $27.58 (19.2% Upside)
#5 - General Electric (NYSE:GE)
General Electric (NYSE: GE) - To be completely transparent, GE’s stock just recently went above $10 and was trading over $11 as of February 25, 2019. Analysts started to pay attention to the battered GE stock when they hired Larry Culp as their Chief Executive Officer. The stock has been up for the year and popped 12% after the announcement of the $21.4 billion sale of its biopharma unit to Danaher. The sale, which is expected to be completed by the fourth quarter, allowed the company to call off its scheduled healthcare IPO. According to Culp, the company will use the proceeds from this sale to pay down debt and strengthen their balance sheet. The sale is one of the latest efforts to provide strength and focus to GE’s business model. In November of 2018, the company announced expedited plans to sell their $4 billion stake in oil-field service provider Baker Hughes. The larger question in investor’s mind is what, aside from selling off assets, the industrial giant has planned to stem the fall of their stock which had dropped 70% since the middle of 2016. In the fall of 2018, the company reduced their dividend to $0.01 per share. In their fourth-quarter earnings report, GE posted mixed results. They posted a slight gain in their top line that was evened out by a miss on their bottom line. The stock was up almost 40% YTD as of February 25, 2019.
About General Electric
General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It also offers aftermarket services to support its products. The company operates in the United States, Europe, China, Asia, the Americas, the Middle East, and Africa.
Read More - Current Price
- $170.08
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $201.93 (18.7% Upside)
#6 - Trivago (NASDAQ:TRVG)
Trivago (NASDAQ: TRVG) - One of the ways you can tell a stock is drawing the attention of analysts is when their earnings estimates are revised upwards. That’s the case for Trivago whose stock has failed to meet the promise of its initial public offering (IPO) of two year ago. The global hotel search platform’s stock began to rise in September of 2018 and while it is down from its six-month peak of around $7.44 (it is currently trading at $5.24), the stock is still well above its 52-week lows, which were reached in July 2018. One reason for the renewed excitement for the stock was when PAR investment, a Boston-based private equity firm, purchased 7 million shares of stock, significantly adding to their position. The market responded with shares rising 35%, they’ve come down a bit since then, but the company did report an improved return on advertising spend. The company has a unique space in the online travel space because they are what is known as a “hotel metasearch” company. Essentially, they are a one-stop shop for consumers who can select a hotel based on their own curated specifications. It’s a complicated model, and one that has already seen revenue decline from companies who have deviated from Trivago’s algorithms.
About trivago
trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Canada, Japan, and internationally. It offers an online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels.
Read More - Current Price
- $2.30
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $2.55 (10.9% Upside)
#7 - NIO (NYSE:NIO)
NIO (NYSE: NIO) - The Chinese electric car manufacturer NIO made its debut on the NYSE in September of 2018 and immediately the stock price more than doubled from $6.25 per share to $13.80. But then the stock went on a roller coaster ride where it fell over 15%, rose over 30% before falling another 17%. So far in 2019, the stock is up nearly 20%, which is quite a bit more than other Chinese stocks such as Alibaba and Baidu. Investors seem to be trading on the news with this stock and recently the news has been good. In February, the company announced that it had made Fast Company list as one of the most innovative companies in China. Investors drove the stock price up 5% as a result. And a recent favorable story on the broadcast 60 Minutes saw the stock climb again. Currently NIO stock is rated as a buy by 40% of analysts and 50% see it as a hold. The company is scheduled to post fourth-quarter earnings in early March. If they meet or exceed analysts' expectations, this stock could be ready to take off.
About NIO
NIO Inc designs, manufactures, and sells electric vehicles in the People's Republic of China. The company is also involved in the manufacture of e-powertrain, battery packs, and components; and racing management, technology development, and sales and after-sales management activities. In addition, it offers power solutions for battery charging needs; and other value-added services.
Read More - Current Price
- $4.48
- Consensus Rating
- Hold
- Ratings Breakdown
- 3 Buy Ratings, 7 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $5.71 (27.5% Upside)
#8 - Arcos Dorados (NYSE:ARCO)
Arcos Dorados (NYSE: ARCO) - One strategy for investing in low-priced stocks is finding a company like ARCO that is the leading franchisee of McDonald’s in Latin America. If you were to invest in McDonald’s directly, it would cost you right around $180 per share at current prices. You can pick up ARCO stock for less than $9 per share. But is it a good investment? The stock took a beating last year, declining 24% while the S&P 500 lost just 6%. However, in the last quarter, the company showed a rebound with sales increasing by 8% and along with that, the company showed higher margins and a slight uptick in profit. The company’s board of directors also authorized a share buyback plan that is also a sign of improved financial health. This is a stock that may require a certain measure of patience, but investors may be rewarded if the company continues to work through its debt issues and the effect of currency swings.
About Arcos Dorados
Arcos Dorados Holdings Inc operates as a franchisee of McDonald's restaurants. It has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S.
Read More - Current Price
- $7.29
- Consensus Rating
- Buy
- Ratings Breakdown
- 1 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $12.00 (64.6% Upside)
In almost every sector of the economy, an investor can find low-priced stocks – even some that are trading for under $10 per share. While these companies sometimes have valid reasons for such a low stock price, some companies have traded for far more than their current price and are showing signs of being ready to reward shareholders with growth in revenue and profits. The companies that we're showing in this report represent some areas like telecom that are at the beginning of the 5G rollout. In the past, these cycles have led to multiple quarters of growth. And then there's a company like General Electric, whose stock has been battered and not without reason. But this sleeping giant is showing signs of getting up off the mat – which could mean huge profits for the investor to get in on the stock at its current price. And for those of you that like a little more speculation in your portfolio, consider the Chinese electric car manufacturer, NIO. This is a company that’s been turning the heads of analysts since its initial IPO in September of 2018 and could be ready for a big year in 2019.
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