Despite the stock market’s impressive rally after its slump last March, not every stock is now highly priced. Despite decent returns over the past year, some stocks are still trading at affordable price levels. However, it is also true that not every stock that is trading at an attractive price is a good investment. Most lower-priced stocks are priced lower than their peers for sound reasons…
However, some of these stocks have proven business models and the fundamental strength to generate increased revenues and earnings. So, betting on them at affordable prices could reward investors handsomely.
Ericsson ADS (ERIC – Get Rating), Panasonic Corporation (PCRFY – Get Rating), and United Microelectronics Corporation (UMC – Get Rating) are three companies that are innovating quickly in their respective spaces, but are priced below $15. And recent announcements by these companies indicate that it is just a matter of time before they gain high valuations. So, we think it would be wise to pick up these stocks right now.
Ericsson ADS (ERIC – Get Rating)
Ericsson is involved in providing technology communications and related services. The company offers services related to mobile, broadband, and cloud communications. ERIC’s stock has gained 54.2% over the past year to close yesterday’s trading session at $13.52.
Ericsson recently signed a deal with steel and mining company EVRAZ to provide an LTE/5G-ready network for private communications. The company has also signed a six-year agreement with Vivo to make Ericsson Charging the strategic monetization platform for Vivo’s charging requirements.
For the quarter ended December 31, 2020, Ericsson saw a 13% increase in year-over-year. The company’s network sales grew 20% during the same period.
ERIC is expected to see a revenue growth of 26.9% for the quarter ended March 31, 2021 and 14.7% in 2021. Its EPS is estimated to grow 15.9% in 2021 and at a rate of 13.6% per annum over the next five years.
ERIC’s strong fundamentals are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.
The stock has an overall rating of A, which equates to Strong Buy in our proprietary ratings system. It has a grade of B for Value, Growth, and Sentiment. In the B-rated, 55-stock Telecom- Foreign industry, it is ranked #2.
In total, we rate ERIC on eight different levels. Beyond what we stated above, we have also given ERIC grades for Stability, Momentum, and Quality. Get all the ERIC ratings here.
Panasonic Corporation (PCRFY – Get Rating)
PCRFY develops, manufactures, and markets electronic products. The company has worldwide operations. PCRFY closed yesterday’s trading session at $13.82, representing a 24.5% gain over the past year.
PCRFY recently developed the Vixell, a vacuum insulated cooling box. It can store items at a temperature of -70 degrees. The company has also completed a field test of a home delivery service using a robot.
PCRFY’s revenue is estimated to…
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