Tech Stocks Under $10 with Low P/E Ratio: DELL, GA, XRX

PUBLISHED: 10 Oct 2012 @ 16:22 | Comments (0) | More info about Ed Liston

I use a wide variety of financial ratios to make decisions about my portfolio. These ratios are helpful in determining the robustness of the company’s policies and its financial health. One of the most important financial ratios is Price Earnings ratio. This ratio tells the relationship between the stock’s current trading price and its earnings.

All else being equal, lower Price Earnings ratio is considered to be better as it denotes that the stock is comparatively cheaper to buy in comparison to its peers. However, as with all the investment metrics, even this ratio should not be used in isolation and you should carry out proper fundamental analysis of the stock you are deciding about. So, here is my list of top technology stocks under $10 with good P/E ratio:

Dell Inc. (NASDAQ:DELL): Once a tech behemoth, the company is now struggling in the post-PC era but it is not down and out yet and is looking to adapt itself to the changed environment. Dell is currently trading at $9.59, up 0.31 percent from its previous close of $9.56. The stock is trading at the Price Earnings ratio of 5.66. It has traded in the range of $9.35 and $18.36 in the past 52 weeks and is currently hovering around its lowest price point. However, the stock is trading above its 20 days moving average price of $9.54 and 50 days moving average price of $9.55. Dell has market capitalization of $16.60 billion and its stock is trading at beta of 1.40. Citigroup has given Sell verdict on the stock. The analysts are concerned about the company’s ability to survive in the emerging mobile computing market. The company is now gearing to get its market position back in the wake of introduction of Windows 8. Dell is also trying to go through mergers and acquisition. It has made a couple of acquisitions but these transactions have failed to make any impact on the company’s fortunes. Dell reported its latest Earnings per share at $1.68.

Giant Interactive Group Inc. (NYSE:GA): This $1.23 billion company stock is currently trading at $5.17, up 0.19 percent from its previous close of $5.16. The stock had opened at $5.19 and has traded in the range of $5.16 and $5.17 in the current trading session. Giant Interactive Group stock commands the Price Earnings ratio of 6.34. The company recently announced the extension of its share repurchase program. The extension is applicable for 12 months. Under this new extension, the company is authorized to repurchase up to the remaining balance of the $50 million worth of open market purchases. Giant Interactive Group stock is trading in line with its 20 days moving average price of $5.17 and above its 50 days moving average price of $5.16. The company has solid growth pipeline of the products to be released in future. Giant Interactive Group currently holds Buy rating from Citigroup and its price target is set at $5.80. The stock is also rated Buy by Bank of America with the price target of $6.40. Giant Interactive Group is engaged in the business of developing and operating online games. The company is based out of the People’s Republic of China and it was formed in 2004.

Xerox Corp. (NYSE:XRX): The company is engaged in the business of providing business process services. It also offers document management services. Xerox Corp. stock is currently trading at $7.09, down 0.98 percent from its previous close of $7.16. This stock commands Price Earnings ratio of 7.87. Xerox recently won a new contract from the state of Nevada and the contract is said to be worth $72 million. Xerox Corp. will be required to use its cloud technology to help the state’s Health Insurance Exchange. The company is looking to reinvent itself to meet changing business environment. The company stock has received Neutral rating from Citigroup and BMO Capital Markets have also rated the stock as Market Perform. Both the firms have set the price target of $8 for the stock. The stock is currently trading below both the short term as well as long term moving average price of $7.10 and $7.12 respectively. Xerox commands market capitalization of $9.27 billion and its stock is trading at the beta of 1.58.

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