Tech Stocks predicted by Wall Street to surge:
Hit the Up-and-Coming Markets
In the realm of tech innovation and dreams-come-true, these two penny stocks are making waves. These pocket-sized powerhouses are tied to upcoming tech companies, carving out their spots in respective markets.
Penny stocks, priced under $5, can offer investors a shot at mega-returns, though they often bring along risk. Volatility is the name of the game for these stocks, with price fluctuations driven by sentiment, conjecture, and mere whispers of news. The hope for investors? That the returns will outshine the risks.
Let's dive deeper into Expensify (EXFY) and Bridgeline Digital (BLIN):
Penny Stock #1: Expensify
Expensify (EXFY) serves up a sleek cloud-based platform for handling expenses, bills, corporate cards, and travel. Their offerings span from individuals to enterprises, streamlining everything from invoicing to reimbursements.
Valued at a market cap of $239 million, shares of Expensify skyrocketed 85% over the past 52 weeks. The company shocked investors with fantastic Q4 earnings, leading to a staggering 20.3% surge the following day. Revenue climbed 5% year-over-year to $37 million, while non-GAAP net income hit $8.7 million or $0.10 per share. Adjusted EBITDA rocketed 111.7% to $12.4 million.
In Q4, Expensify showcased its financial might, generating a hefty $7.2 million in adjusted operating cash flow and $6.2 million in free cash flow. Looking ahead, management is projecting free cash flow between $16 million and $20 million for 2025, paving the way for an epic transformation. Expensify plans to roll out "Concierge everywhere," shifting from a chat-first model to an AI-first experience. This shift allows users to simply ask Concierge for anything, from adjusting settings to examining expenses.
Analysts monitoring Expensify foresee the company's profit reaching $0.03 per share in fiscal 2025, while revenue is anticipated to be roughly $148.8 million. Overall, EXFY has a "Moderate Buy" consensus rating, reflecting analysts' optimism towards the stock. Out of the five analysts in coverage, two urge a "Strong Buy," while the remaining three are playing it safe with a "Hold" rating.
The stock's mean price target of $4.25 suggests that it could gallop as much as 44% from the current levels.
Penny Stock #2: Bridgeline Digital
Bridgeline Digital (BLIN) serves up AI-powered marketing tech. Their suite of products includes HawkSearch, Celebros, Woorank, Unbound, TruPresence, and OrchestraCMS - tools designed for personalized search, SEO, content management, and digital transformation.
Targeting industries ranging from finance to health to manufacturing, Bridgeline helps brands boost digital engagement and e-commerce performance. Its market cap currently stands at $17.86 million.
Shares of Bridgeline have weathered a rough sea, plunging 38% from their YTD high of $2.80. However, if you zoom out, the penny stock still boasts a 41.5% gain over the past 52 weeks, hinting that beneath the volatility, there's resilience.
On Feb. 13, Bridgeline reported its fiscal Q1 earnings report, pulling in $3.8 million in revenue, merely above last year's figure. Loss per share remained unchanged at $0.06.
Delving deeper into Bridgeline's Q1, subscription and license revenue dipped 1% year-over-year but picked up sequentially, pointing towards a possible recovery. Core products displayed stronger growth, with both total and subscription revenues expanding over 10% compounded annually.
Bridgeline inked 28 new subscription deals worth $2.7 million in total contract value, triggering over $800,000 in fresh annual recurring revenue.
Analysts predict Bridgeline's loss per share to decrease by 10.5% year over year to $0.17 in fiscal 2025, with the losses expected to narrow by another 29.4% to $0.12 per share in fiscal 2026. BLIN stock has a consensus "Strong Buy" rating overall - an upgrade from the "Moderate Buy" three months back. Out of the three analysts tracking the stock, two advocate for a "Strong Buy," and one suggests a "Moderate Buy."
The mean price target of $3.96 indicates that the tech stock has upside potential of 127% from current prices. The Street-high target of $4.62 implies that the penny tech stock could rocket as much as 165%.
- The stock-market phenoms Expensify (EXFY) and Bridgeline Digital (BLIN) are surging in the technology sector, with Expensify serving as a cloud-based platform for expenses and bills, while Bridgeline offers AI-powered marketing tech.
- Expensify (EXFY) recently reported outstanding Q4 earnings, skyrocketing 85% over the past year, and currently has a "Moderate Buy" consensus rating from analysts, with a mean price target of $4.25 suggesting potential gains of 44%.
- Bridgeline Digital (BLIN), despite a recent plunge in shares, has demonstrated remarkable resilience, recording a 41.5% gain over the past 52 weeks and presently has a consensus "Strong Buy" rating from analysts, with the mean price target of $3.96 indicating upside potential of 127%.
- Investing in penny stocks, such as Expensify and Bridgeline Digital, can bring high returns but comes with inherent risks, as demonstrated by their volatile nature, driven by sentiment, conjecture, and news whispers.
