3 Cheap Tech Stocks Trading Under $10 To Buy With Market At New Highs

The Dow, the S&P 500, and the Nasdaq all surged again Wednesday to close at new records. The continued climb comes as Wall Street shakes off coronavirus worries, driven by strong quarterly earnings results, boosted by giants like Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) .

Investors were also pleased with last Friday’s U.S. jobs report. Therefore, it seems that investors should still be on the hunt for stocks as the market rises. And today we are taking a look at a more niche category of stocks that might be worth buying: tech stocks trading under $10 per share.

Stocks trading under $10 can be more volatile than their pricier peers, but investors can still scoop up big returns with the right low-priced stocks. So here are three cheap tech stocks that we found with our Zacks Stock Screener that investors might want to buy right now amid February’s surge…

Pixelworks, Inc. (NASDAQ:PXLW)

Prior Close: $4.48 USD

Pixelworks makes visual display processing semiconductors, software, custom application specific integrated circuits solutions, and more geared toward video applications. PXLW’s addressable markets include smartphones, tablets, OTA streaming devices, and digital projection systems.

The firm’s earnings estimates have climbed since it topped our Q4 bottom-line projection on February 6, with the stock up over 8%. PXLW’s recent run is part of a larger 40% jump in the last three months. Yet the stock still sits well below its three years highs, which could give it more room to climb.

Pixelworks has seen its Q1 and fiscal 2020 earnings revisions trend upward to help it earn a Zacks Rank #2 (Buy) and it’s projected to swing from an expected loss this year to positive earnings in 2021. PXLW also holds an “A” grade for Momentum in our Style Scores system, is part of an industry that rests in the top 4% of our more than 250 Zacks industries, and its sales are projected to jump 9% and 15%, respectively in 2020 and 2021.

Mitek Systems, Inc. (NASDAQ:MITK)

Prior Close: $9.67

Mitek Systems utilizes artificial intelligence and machine learning to help financial institutions and other enterprises verify a user’s identity during digital transactions. Mitek’s solutions are embedded into the apps of over 6,500 organizations and used by more than 80 million consumers to perform tasks such as mobile check deposit. MITK at the end of January topped our Q1 estimates, with sales driven by double-digit growth in mobile deposit and identity verification products.

The San Diego-based company’s fiscal 2020 and 2021 earnings estimates have popped since then. Our Zacks estimates call for Mitek’s adjusted 2020 earnings to surge 21.4% to $0.51 per share on 18.3% higher revenues, with 15% top and bottom-line growth expected next year as well. MITK has also crushed our bottom-line estimates recently, and its shares have surged 185% in the past five years.

Despite the overall jump, a post Q4-selloff has MITK sitting below its 52-week highs of over $12 pre share. Mitek is currently a Zacks Rank #1 (Strong Buy) that also sports “A” Grades for both Growth and Momentum in our Style Scores system, and stands to benefit in our digital and mobile-heavy economies.

Orion Energy Systems, Inc. (NASDAQ:OESX)

Prior Close: $5.74 USD

Orion Energy Systems makes high quality LED lighting products and its “turnkey energy project solutions,” which feature controls and integrated IoT capabilities, have become a hit with some enterprise customers. In fact, its Q3 fiscal 2020 (reported on Feb. 6) revenue skyrocketed 110%, driven by a “large turnkey LED lighting retrofit contract for a major national account.”

The firm is actively expanding its sales team to go after other large accounts throughout the U.S. Long-term, Orion stands to benefit as companies retrofit and modernize their lighting in offices and warehouses. The company’s adjusted ESP figure is projected to soar from an adjusted loss of -$0.23 a share in 2019 to +$0.46 in 2020. OESX’s fiscal 2020 revenue is expected to climb 135% from $66 million to $155 million.

Orion shares have jumped 93% in the last three months and over 515% in the last year. OESX’s positive bottom line revision activity helps it earn a Zacks Rank #1 (Strong Buy) and it holds “A” grades for Growth and Momentum. And OESX could become more popular as companies big and small look to cut long-term costs through energy-efficient LED offerings.

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