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3 Cheap Tech Stocks Under $10 to Buy Now After Strong Earnings Results

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The technology sector has proven more resilient to the coronavirus in terms of stock price performance and actual sales and earnings. Tech stocks have continued their rally recently, to help the Nasdaq jump over 11,000 for the first time ever last week.

The big names such as Apple (AAPL - Free Report) , Amazon (AMZN - Free Report) , Facebook , and others have helped fuel the recent climb. That said, there are valuation worries, mounting tensions between the U.S. and China, and other concerns.

But third quarter earnings estimates are improving, and Wall Street seems poised to remain in don’t fight the Fed mode as they chase returns wherever they can.

With this in mind, let’s dive into three tech stocks that are coming off strong quarterly earnings results and trade for under $10 per share…

Nokia (NOK - Free Report)

Prior Close: $4.91 USD (end of regular trading on Monday, August 10)

Nokia is a global telecommunication firm, with a portfolio that includes network equipment, software, services, licensing, and more. NOK topped our second quarter earnings estimates on July 31 and it raised its 2020 outlook. Nokia expanded its margins and profit amid the tough times.

NOK shares are up 85% since the market’s March lows and 10% since its Q2 report. Despite the climb, the telecom firm’s stock price rests 10% below its 52-week highs at around $4.90 a share.

Nokia earns a Zacks Rank #2 (Buy) right now, and our Zacks estimates call for its adjusted earnings to jump 8% this year and another 26% in FY21. NOK also holds a “B” grade for Value in our Style Scores system.

Investors should note that Nokia’s new CEO, Pekka Lundmark, took over on August 1. Nokia also stands to benefit over the long haul from the expansion of everything from 5G to data centers—and it could possibly profit as more countries reevaluate their relationships with Huawei.

Cars.com (CARS - Free Report)

Prior Close: $8.73 USD (end of regular trading on Monday, August 10)

Cars.com, as its name suggests, is an automotive market place built for the e-commerce age. The company, which also provides digital solutions, topped our second quarter estimates at the end of July, even though its sales and earnings took a hit as consumers avoided larger purchases during the initial wave of economic uncertainty and layoffs. Despite the setbacks, average monthly unique visitors popped 6% to 22.8 million, with total traffic up 10%, driven by mobile.

CARS has seen its longer-term earnings revisions turn far more positive recently to help it earn a Zacks Rank #1 (Strong Buy) at the moment. Cars.com also sports an “A” grade for Value and a “B” for Momentum in our Style Scores system. On top of that, our estimates call for its fiscal 2021 sales and earnings to bounce back right near its 2019 levels—after expected declines in 2020.

CARS has soared 50% in the past month to $9 per share. Luckily for investors, this still comes in 35% below its 52-week highs and it’s worth noting that Cars.com traded all the way at $30 in 2018.

Plus, consumers might avoid ride-sharing and public transportation for as long as the coronavirus is with us. “Although business conditions remain uncertain, we are confident in the demand for cars as a preferred mode of transport, with new and used car sales bouncing back sequentially during the quarter,” CEO Alex Vetter said in prepared remarks.

Limelight Networks, Inc.

Prior Close: $6.10 USD (end of regular trading on Monday, August 10)

Limelight provides digital content delivery, video, cloud security, and edge computing services. The Scottsdale, Arizona-based firm allows its customers to deliver streaming video and other digital content to “any device, anywhere.”

Limelight’s offerings are geared toward industries from media and broadcasting to gaming, which makes it an attractive coronavirus play and possible longer-term investment. LLNW beat our Q2 earnings and revenue estimates on July 20, with revenue up 28%, while it swung from an adjusted loss to +$0.03 per share.

Limelight’s strong quarter helped executives raise the firm’s full-year sales guidance, which is no easy task at the moment. Our Zacks estimates now call for the company’s fiscal 2020 revenue to jump 18%, with FY21 expected to come in another 10% higher. On top of that, Limelight is expected to soar from an adjusted loss of -$0.02 in FY19 to +$0.07 a share in FY20, with FY21 projected jump another 81% higher to $0.13 per share in

Limelight’s positive post-release earnings revisions help it earn a Zacks Rank #2 (Buy) at the moment. LLNW has crushed our bottom-line estimates in the past two quarters and it sports “B” grades for Growth and Momentum. LLNW stock has soared 160% over the last 12 months.

Despite the run, the stock sits 20% off its recent highs as some investors likely used its recent report as a chance to take home profits. Alongside its cheap price, LLNW also trades at 2.9X forward 12-month sales vs. the tech sector’s 4.1X.

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