Investors can leverage TipRanks’ penny stock screener to narrow down on penny stocks that are more likely to outperform the broader market than others. Using the tool, we have zeroed in on Surgepays (NASDAQ:SURG). This penny stock has earned an Outperform Smart Score on TipRanks with a significant upside potential (based on analysts’ average price target), making it an attractive bet at current levels.
What Is SurgePays?
SurgePays is a financial technology and telecom company. It offers prepaid products and mobile broadband services to low-income consumers. SURG stock has more than doubled year-to-date (up about 114%), thanks to the stellar growth in its revenue and subscriber base.
In Q2, SurgePays’ top line jumped 146% year-over-year to $28 million. Further, its wireless subscribers crossed 150,000.
SurgePays continues to focus on expanding its broadband footprint, and through the Affordable Connectivity Program (ACP), it expects to end 2022 with 200,000 customers.
While SurgePays’ business is growing fast, its stock is trading cheaper than its peers, noted Maxim Group analyst Michael Diana.
The analyst said, “Trading at only 2.2x our 2023 EPS estimate, SURG shares are very undervalued, in our view.”
Diana added, “Our $10 price target equates to a 2023E P/E of only 3.4x (unchanged), a very substantial discount to peers.” The analyst has a Buy rating on SURG stock.
Along with Diana, Edward Woo of Ascendiant also has a Buy rating on SurgePays stock.
Overall, SURG’s average price target of $9.38 implies 117.1% upside potential. Further, with positive signals from insiders (who bought SURG stock worth $54.9k last quarter) and retail investors (7.9% of them increased holding in SURG stock in one month), SurgePays sports an Outperform Smart Score of nine out of 10 on TipRanks.
Can You Get Rich from Penny Stocks?
Penny stocks are the shares of companies with a market cap of $300 million or less. Their low dollar price and potential to deliver stellar returns attract investors.
However, Penny stocks are a risky investment and quite speculative. Thus, investors with a high appetite for risk could consider investing in penny stocks. Also, investing all of your savings into penny stocks is not advisable, and investors should only put a small fraction of it into them.
As for SurgePays, the company is growing fast and is on course to acquire more wireless subscribers, which should support its growth.
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