As investors are pricing in a Covid-19 vaccine from Pfizer, Inc. (PFE) and BioNTech SE (BNTX), stocks in industries that were beaten down by the pandemic are witnessing some investor attention. However, high-flying tech companies have experienced downward pressure following the vaccine news, as the remote digital lifestyle is likely to take a back-seat post vaccine roll out.

In these uncertain times, it is always possible to come across some great deals in a neglected corner of the market. The opportunity with low-priced stocks is that you’re looking where no one else is looking. Stocks trading at less than $10 have a disreputable charm. It is certainly hard to imagine a giant tech stock tripling from their high prices, but it is easier to imagine some $10 stock going to $30. These stocks can be particularly attractive if they have the potentiality to generate a substantial capital gain.

Low-priced stocks like Wipro Limited (WIT), United Micro Corporation (UMC), and B2Gold Corp. (BTG) have demonstrated strength in their fundamentals and should soar in the near future.

Wipro Limited (WIT)

WIT is a leading IT, consulting and business process services (BPS) company operating globally through three segments – IT Services, IT Products, and India State Run Enterprise Services (ISRE). The company serves customers in banking, financial services, and insurance, consumer business, manufacturing, technology, and communications.

On November 2^nd, WIT announced the launch of its Wipro AWS Business Group to allow customers to fast-track their cloud transformation journey on AWS. This strategic move will further accelerate WIT’s growth.

WIT recently announced its intention to expand its IBM Hybrid Cloud Practice to help customers manage their digital operations across hybrid cloud environments. This expansion could strengthen their business-first strategy and increase their client-base.

WIT’s revenue increased 1.4% sequentially to $2.10 billion in the fiscal second quarter that ended September 2020. Gross profit grew 5.8% from the year-ago quarter to $622 million, while EPS rose slightly from the prior-year quarter to $0.06.

The consensus EPS estimate of $0.25 for next year indicates a 4.2% improvement year-over-year. The consensus revenue estimate of $8.91 billion for next year indicates 7% growth from the same period last year. The stock has gained 35.5% year-to-date to close yesterday’s trading session at $5.08.

How does WIT stack up for the POWR Ratings?

A for Trade Grade

B for Buy & Hold Grade

B for Peer Grade

B for Industrial Rank

B for Overall POWR Rating.

The stock is ranked #4 out of the 14 stocks in the Outsourcing – Tech Services industry.

United Microelectronics Corporation (UMC)

UMC is a semiconductor wafer foundry business operating globally through Wafer Fabrication and New Business segments. The company manufactures products in the solar energy and LED industries, and provides testing services, circuit design and wafer fabrication.

UMC has recently collaborated with Cadence Design Systems to help customers gain access to an integrated RF design flow that accelerates time to market. This partnership will enable UMC to extend its services to mobile phone and automotive industries and thereby, diversify its global network.

UMC’s revenue increased 18.9% year-over-year to $44.87 billion in the third quarter that ended September 2020. Net income increased 210.9% from the prior-year quarter to $9.11 billion, while EPS rose 200% from the year-ago value to $0.75.

The consensus EPS estimate of $0.05 for the current quarter ending December 2020, indicates a 40% improvement year-over-year. The consensus revenue estimate of $1.48 billion for the current quarter indicates 7.5% growth from the same period last year. The stock has gained 111.9% year-to-date to close yesterday’s trading session at $5.68.

It’s no surprise that UMC is rated “Buy” in our POWR Ratings system. It has an “A” for Trade Grade and Peer Grade, and a “B” for Buy & Hold Grade and Industry Rank. Among the 86 stocks in the Semiconductor & Wireless Chip industry, it is ranked #26.

B2Gold Corp. (BTG)

BTG is a gold mining company that operates mines in Mali, the Philippines, and Namibia. It has an 81% interest in the Kiaka Project in Burkina Faso. The company additionally offers other evaluation and exploration services as well.

On September 17^th, BTG announced the successful completion of 33,000 metres of drilling exploration near Fekola. This indicates a potential increase in the company’s gold deposits. The company has recently announced an expansion of its mill at the Fekola mines.

BTG’s gold revenue increased 56.8% year-over-year to $486.17 million in the third quarter that ended September 2020. Operating income grew 269.2% from the prior-year quarter to $426.93 million, while EPS rose 400% year-over-year to $0.25.

The consensus EPS estimate of $0.50 for the current quarter ending December 2020 indicates a 118.7% improvement year-over-year. Moreover, BTG beat the street EPS estimates in three out of trailing four quarters, which is impressive. The consensus revenue estimate of $1.80 billion for the current quarter indicates 55.9% growth from the same period last year. The stock closed yesterday’s trading session at $6.44, gaining 60.6% year-to-date.

BTG’s strong fundamentals are reflected in its POWR Ratings. It has a “Buy” rating with an “A” in Peer Grade and a “B” in Trade Grade and Buy & Hold Grade. It is also ranked #4 out of 30 stocks in the Miners – Gold industry.

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WIT shares were unchanged in after-hours trading Tuesday. Year-to-date, WIT has gained 31.69%, versus a 11.58% rise in the benchmark S&P 500 index during the same period.

About the Author: Imon Ghosh

Imon is an investment analyst and journalist with an enthusiasm for financial research and writing. She began her career at Kantar IMRB, a leading market research and consumer consulting organization. More...

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