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8 Stocks Under $10 Analysts Love in 2019

8 Stocks Under $10 Analysts LovePosted on Monday, March 4th, 2019 by Chris Markoch

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.

#1 - Nokia (NYSE:NOK)

Nokia Oyj logo

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 Corporation engages in the network and technology businesses worldwide. The company operates in four segments: Ultra Broadband Networks, Global Services, IP Networks and Applications, and Nokia Technologies. It provides hardware, software, and services for telecommunications operators, enterprises, and related markets/verticals, including public safety and Internet of Things (IoT). It also offers fixed networking solutions, such as copper based solutions; fiber technology solutions, including gigabit passive optical networks, Ethernet point-to-point, and 10 gigabit next generation fiber technologies; and fiber access products, solutions, and services. In addition, the company provides network infrastructure and implementation, care, and professional services comprising network planning and optimization, and systems integration services for mobile networks; and managed services for the fixed, mobile, applications, Internet protocol (IP), and optical domains. Further, it offers network planning and optimization services to enhance the network performance and quality, and analytics-based services. Additionally, the company provides IP/optical networking solutions, including IP routing and optical transport systems, software, and services; software solutions, such as customer experience management, network operations and management, communications and collaborations, policy and charging, as well as Cloud, IoT, security, and analytics platforms; and submarine networks and radio frequency systems. It has a collaboration agreement with CommScope Holding Company, Inc. Nokia Corporation was founded in 1865 and is headquartered in Espoo, Finland.

Current Price: $3.52
Consensus Rating: Buy
Ratings Breakdown: 9 Buy Ratings, 4 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $5.29 (50.3% Upside)

#2 - Ericcson (NASDAQ:ERIC)

Telefonaktiebolaget LM Ericsson logo

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
Telefonaktiebolaget LM Ericsson (publ) provides information and communications technology solutions for service providers. It operates through four segments: Networks, Digital Services, Managed Services, and Emerging Business and Other. The Networks segment provides mobile radio access networks, transport solutions, and site solutions, as well as related services, such as network rollout, network tuning, and customer support. The Digital Services segment offers products and services for service providers in the areas of business support systems, operations support systems, cloud core, cloud communication, network functions virtualization, and cloud infrastructure, as well as consulting, learning, and testing services. The Managed Services segment provides vendor agnostic services, including networks and IT managed, application development and modernization, and network design and optimization services to manage service providers networks. The Emerging Business and Other segment consists of emerging businesses; iconectiv that offers software-based interconnection solutions; media solutions; and Red Bee Media, which consists of technology enabled services to manage the play-out platform for broadcasters and content owners. It operates in Europe and Latin America, the Middle East and Africa, North America, North East Asia, South East Asia, Oceania, and India. The company was founded in 1876 and is headquartered in Stockholm, Sweden.

Current Price: $9.06
Consensus Rating: Buy
Ratings Breakdown: 6 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $10.08 (11.3% Upside)

#3 - Blackberry Limited (NYSE:BB)

BlackBerry logo

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 enterprise software and services worldwide. The company offers BlackBerry Enterprise Mobility Suite, which combines and integrates mobile security, management, productivity, and collaboration solutions, such as BlackBerry UEM, BlackBerry Dynamics, and BlackBerry Workspaces; BlackBerry AtHoc, a networked crisis communications solution; SecuSUITE for Government, a voice encryption software solution; BlackBerry Enterprise Consulting and BlackBerry Cybersecurity Consulting services; and BBM Enterprise, an enterprise-grade instant messaging solution, as well as BlackBerry Spark Communication services. It also provides CylancePROTECT, an endpoint threat prevention solution; CylanceOPTICS, an endpoint detection and response solution; BlackBerry QNX real-time operating systems, middleware, development tools, and professional services; BlackBerry Jarvis, a cloud-based binary static application security testing platform; and BlackBerry Certicom that offers device security, anti-counterfeiting, and product authentication. In addition, the company offers Paratek, which provides adaptive radio frequency antenna tuning technology; and BlackBerry Radar, an asset tracking and telematics solution, as well as intellectual property and licensing, mobility licensing, and other licensing programs. Further, it is involved in developing BlackBerry 10 platform, and delivering BlackBerry productivity applications to Android smartphone; developing and licensing of device software and outsourcing to partners; and providing of Android smartphones, smartphone accessories, and non-warranty repair services. Additionally, the company engages in the operations related to subscribers using mobile devices with its legacy BlackBerry 7 and prior operating systems. The company was formerly known as Research In Motion Limited and changed its name to BlackBerry Limited in July 2013. BlackBerry Limited was founded in 1984 and is headquartered in Waterloo, Canada.

Current Price: $5.66
Consensus Rating: Hold
Ratings Breakdown: 1 Buy Ratings, 10 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $7.50 (32.5% Upside)

#4 - Sirius XM (NASDAQ:SIRI)

Sirius XM logo

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. provides satellite radio services in the United States. The company broadcasts music, sports, entertainment, comedy, talk, news, traffic, and weather channels, including various music genres ranging from rock, pop and hip-hop, country, dance, jazz, Latin, and classical; live play-by-play sports from principal leagues and colleges; multitude of talk and entertainment channels for various audiences; national, international, and financial news; and limited run channels. It also streams music and non-music channels over the Internet; and offers applications to allow consumers to access its Internet radio service on smartphones, tablets, computers, home devices, and other consumer electronic equipment. In addition, the company distributes satellite radios through the sale and lease of new vehicles; and acquires subscribers through the sale and lease of previously owned vehicles with factory-installed satellite radios, as well as sell satellite radios directly to consumers through its Website, automakers, and retailers. Further, the company provides location-based services through two-way wireless connectivity, including safety, security, convenience, maintenance and data services, remote vehicles diagnostics, and stolen or parked vehicle locator services. Additionally, it offers satellite television services, which offer music channels on the DISH NETWORK satellite television service as a programming package; Travel Link, a suite of data services that include graphical weather, fuel prices, sports schedule and scores, and movie listings; and real-time traffic and weather services. The company was founded in 1990 and is headquartered in New York, New York. Sirius XM Holdings Inc. is a subsidiary of Liberty Media Corporation.

Current Price: $6.92
Consensus Rating: Buy
Ratings Breakdown: 8 Buy Ratings, 2 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $7.47 (7.9% Upside)

#5 - General Electric (NYSE:GE)

General Electric logo

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 operates as a high-tech industrial company worldwide. It operates through Power, Renewable Energy, Aviation, Oil & Gas, Healthcare, Transportation, Lighting, and Capital segments. The Power segment offers technologies, solutions, and services related to energy production, including gas and steam turbines, generators, and high voltage equipment; and power generation services. The Renewable Energy segment provides wind turbine platforms, and hardware and software; offshore wind turbines; solutions, products, and services to hydropower industry; and blades for onshore and offshore wind turbines. The Oil & Gas segment offers oilfield and oilfield equipment, turbomachinery and process solutions, and digital solutions. The Aviation segment provides jet engines and turboprops for commercial airframes; maintenance, component repair, and overhaul services, as well as replacement parts; and additive machines and materials, and engineering services. The Healthcare segment provides healthcare technologies in medical imaging, digital solutions, patient monitoring, and diagnostics, drug discovery, biopharmaceutical manufacturing technologies and performance enhancement solutions. The Transportation segment provides freight and passenger locomotives, and rail and support advisory services; parts, integrated software solutions, and data analytics; software-enabled solutions; mining equipment and services; and marine diesel engines, and stationary power diesel engines and motors for drilling rigs, as well as overhaul, repair and upgrade, and wreck repair services. The Lighting segment offers light emitting diode products; and energy efficiency and productivity solutions. The Capital segment leases and finances aircraft, regional jets, turboprops, freighters, engines, helicopters, as well as offers financing and materials; financial and underwriting solutions; and insurance services. The company was founded in 1892 and is based in Boston, Massachusetts.

Current Price: $11.34
Consensus Rating: Hold
Ratings Breakdown: 7 Buy Ratings, 6 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $10.75 (-5.2% Upside)

#6 - Trivago (NASDAQ:TRVG)

Trivago logo

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 as a hotel and accommodation search platform. It offers online meta-search for hotels by facilitating consumers' search for hotel accommodation through online travel agents, hotel chains, and independent hotels. The company provides access to its platform through 55 localized Websites and apps in 33 languages. As of December 31, 2018, its hotel search platform offered access to approximately 3.0 million hotels and other types of accommodation worldwide. The company was founded in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. is a subsidiary of Expedia Group, Inc.

Current Price: $2.85
Consensus Rating: Hold
Ratings Breakdown: 1 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $5.50 (93.0% Upside)


NIO logo

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. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was founded in 2014 and is headquartered in Shanghai, the People's Republic of China.

Current Price: $2.39
Consensus Rating: Hold
Ratings Breakdown: 2 Buy Ratings, 4 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $3.95 (65.1% Upside)

#8 - Arcos Dorados (NYSE:ARCO)

Arcos Dorados logo

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, Curaçao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the United States Virgin Islands of St. Croix and St. Thomas, and Venezuela. As of March 27, 2019, the company operated or franchised approximately 2,200 McDonald's-branded restaurants in Latin America. Arcos Dorados Holdings Inc. was founded in 2007 and is based in Montevideo, Uruguay.

Current Price: $7.91
Consensus Rating: Buy
Ratings Breakdown: 3 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $9.75 (23.3% 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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