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), Panasonic Corporation (PCRFY), and United Microelectronics Corporation (UMC) 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)
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)
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 increase 7.3% for the quarter ended March31, 2021 and 24.2% for the quarter ended June 30, 2021. The company’s EPS is expected to rise 400% for the quarter ended June 30, 2021 and 50.8% in 2021.
It is no surprise that PCRFY has an overall rating of A, which equates to Strong Buy in our POWR Ratings system. PCRFY has a grade of A for Value. Within the B-rated Technology – Hardware industry, it is ranked #2 out of 52 stocks.
Click here to see the additional POWR Ratings for PCRFY (Growth, Quality, Stability, Momentum, and Sentiment).
United Microelectronics Corporation (UMC)
UMC is involved in the production of integrated circuit products. Its products find application in every major electronics sector. The company has worldwide operations. UMC’s stock price has increased 284.8% over the past year to close yesterday’s trading session at $10.35.
UMC recently announced the world’s first puf-based secure embedded flash solution in collaboration with eMemory and PUFsecurity. This breakthrough could position the company as a market leader in the flash solution space.
For the quarter ended December 31, 2020, UMC company reported a revenue increase of 8.2% year-over-year. Its consolidated gross margin for the quarter was 23.9%.
UMC’s revenue is expected to grow 19.7% for the quarter ended March 31, 2021 and 16.8% in 2021. Its EPS growth is expected to be 41.9% in 2021 and 20% per annum over the next five years.
UMC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which equates to Strong Buy in our proprietary ratings system. IMBI has a grade of B for Sentiment, Growth, Momentum, Stability, and Quality. In the 96-stock Semiconductor & Wireless Chip industry, it is ranked #2.
Beyond what we stated above we also have given UMC a grade for Value. Get all the UMC ratings here.
The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.
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ERIC shares were trading at $13.66 per share on Wednesday morning, up $0.14 (+1.04%). Year-to-date, ERIC has gained 14.31%, versus a 4.58% rise in the benchmark S&P 500 index during the same period.
About the Author: Aaryaman Aashind
Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...
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