3 Tech Stocks Under $10 To Buy Now

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 three stocks that fall under the broad “technology sector.” Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #1 (Strong Buy). Take a look at the strong estimate revision activity and other factors that make these companies stick out right now:

1. Daktronics Inc. (NASDAQ:DAKT)

Previous Close: $9.43

Daktronics is a leading manufacturer of electronic scoreboards, computer-programmable displays, and large screen video displays. The Zacks Consensus Estimate for the company’s current-quarter earnings has gained three cents over the past 30 days, and our consensus estimate for its quarterly revenue predicts sales growth of 43% this quarter. The stock also has an “A” grade for Momentum after shares gained more than 56% in the past 12 weeks.

2. Everyday Health, Inc. (NYSE:EVDY)

Previous Close: $7.25

Everyday Health is a provider of digital health and wellness solutions, including websites, mobile applications, YouTube shows, and social media destinations that are focused on weight loss, exercise, and nutrition. The stock’s current-quarter Zacks Consensus Estimate has gained nine cents in the past 30 days, and it currently has a positive Earnings ESP of 90% for the quarter.

Everyday Health has legitimized its business by growing its partnerships with professional brands by 40% in the first half of the year; this helped the company post 5% revenue growth in the previous quarter.

3. Oclaro Inc. (NASDAQ:OCLR)

Previous Close: $8.20

Oclaro is a leading provider of high performance optical components, modules, and subsystems for the telecommunications market. The Zacks Consensus Estimate for Oclaro’s current-quarter earnings has gained four cents over the last 60 days, and the company has surpassed the Zacks Consensus Estimate by an average of 101.25% in each of the trailing four quarters.

Our consensus estimates also call for Oclaro to see revenue growth of 31% and earnings growth of 373% this year; this has helped the stock earn an “A” grade for Growth in our Style Scores system.

Bottom Line

A stock’s market price is not a clear indicator of whether it is a good investment. However, the nice thing about the Zacks Rank is that it can be applied to stocks of any price. All of the stocks highlighted here hold a Zacks Rank #1 (Strong Buy) rankings, while also possessing other qualities that help them stick out. For smaller investors looking to find solid tech stocks at lower prices, this list is a great place to start.