We recently compiled a list of the 8 most profitable penny stocks to invest in. In this article, we’ll take a look at how Paysign Inc. (NASDAQ:PAYS) stands compared to other profitable penny stocks.
Potential of small cap stocks
Misallocation of capital to less productive sectors can create inflationary pressures and impede economic growth. Many experts are now suggesting that investors should be cautious and focus on small- and medium-sized stocks (SMid caps) that have the potential to grow in a low interest rate environment. The overall strategy includes updating price targets for interest rate-sensitive companies, with a soft landing scenario also showing the potential for strong revenue and profit growth. As September draws to a close, Curtis Nagel, senior internet analyst for U.S. mid-cap stocks at BofA Securities, appeared on CNBC to discuss potential opportunities for small-cap stocks should the Fed decide to cut interest rates. Here is a short excerpt from the article “7 Best Small Company Stocks To Invest In” which explains this in detail.
“Curtis Nagel shared insights into the performance and potential opportunities for small and mid-cap stocks after the Fed rate cut.Since the rate cut, the Russell 2000 Index has underperformed the major averages, but this He believes there could be significant opportunities for SMID cap stocks in a variety of sectors, including service services.
SM mid-cap stocks are seen as a promising area for investors as the target price of companies with high interest rate sensitivity is revised upward. However, some experts tend to disagree based on the recent performance of small-cap stocks.
Tom Lee, co-founder of Fundstrat, appeared on CNBC’s “Power Lunch” on October 7 to discuss the sustainability of the bull market, touch on small-cap stocks, and the outlook for the market as a whole. While most market analysts emphasize the resilience of the bull market amid looming threats, especially with the US presidential election just four weeks away, Tom Lee expressed optimism about the S&P 500 index, saying, He suggested it could end at 5,700 or higher by the end of the year. He said he believes this potential growth is due to the dovish Federal Reserve starting to cut interest rates and the stimulus measures being implemented in China, which will have a positive impact on the market. With plenty of cash still on hand, Lee sees a favorable environment for stocks over the next three to 12 months.
Despite his bullish outlook, Lee acknowledged that small-cap stocks have shown weakness since the Fed started raising interest rates. He noted that while small-cap stocks are within a few percentage points of their all-time highs, they haven’t performed as well as expected. Current market risk appetite is mixed, and investors may be hesitant to take on new risks as upcoming elections and rising oil prices contribute to uncertainty.
Discussing oil prices, Li said any disruption to Iran’s oil supply, which accounts for only about 3% of global production, could have a psychological impact on the market. Such disruptions may not significantly impact economic conditions, but could lead to increased volatility and consumer distress if oil prices rise. He stressed that markets generally dislike uncertainty, and even a temporary spike in oil prices could cause discomfort to consumers.
While there are challenges ahead, especially as elections approach, underlying economic conditions and potential policy shifts could present opportunities for investors. The interplay between monetary policy, geopolitical factors and market sentiment will be critical in shaping market trends in the coming months. Investors need to closely monitor the market and streamline their research process before making decisions.
methodology
We scoured Finviz to create an initial list of the top penny stocks with a stock price under $5. From that list, we narrowed down our selection to 15 companies with positive TTM net income and a high five-year compound annual growth rate of net income. We then selected eight stocks that are most popular among elite hedge funds and that analysts are bullish on. Stocks are ranked by the number of hedge funds that own the stock as of Q2 2024.
Why are we interested in stocks that hedge funds invest in? The reason is simple. Our research shows that by mimicking the top stock picks of the best hedge funds, you can outperform the market. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, outperforming the benchmark by 150 percentage points (Learn more ).
Close-up view of a hand swiping a prepaid card. Demonstrates secure transaction processing for cardholders.
Paysign Co., Ltd. (NASDAQ:PAYS)
TTM Net Income: $7.7 million
5-year net profit CAGR: 13.78%
Stock price as of October 9: $3.67
Number of hedge fund holders: 6 people
Paysign Inc. (NASDAQ:PAYS) is a global payment services company that develops and manages payment solutions, prepaid card programs, and customized payment services. Primarily serving small and medium-sized businesses, it provides tools to efficiently manage payments and currently manages programs for six of the world’s 20 largest pharmaceutical companies.
The company’s patient affordability business posted 267% year-over-year revenue growth in Q2 2024, accounting for 59% of total revenue growth. Additionally, the number of claims processed increased by an additional 365%. Total revenue was $14.33 million, an increase of 29.80% year-on-year. Plasma donor compensation business increased 13%.
This quarter, we added eight new patient affordable programs, bringing our total to 61 locations. It has also added eight new plasma centers, bringing the total to 477 centers, and plans to add another five to 10 centers by the end of 2024. A major customer of Paysign Inc. (NASDAQ:PAYS), the company expanded its program portfolio from four programs to 12 programs, covering diverse treatment classes and including both new launches and transition initiatives.
The company has demonstrated strong financial performance, primarily driven by exceptional growth in its patient-facing affordable business. With a robust pipeline and focus on innovation, Paysign Inc. (NASDAQ:PAYS) is well-positioned to continue its upward trajectory and deliver significant value to shareholders.
Overall, PAYS ranks 8th on our list of the most profitable penny stocks to invest in. While we recognize the potential of PAYS as an investment, we also believe that AI stocks have great potential to deliver high returns and do so in the short term. time frame. If you’re looking for AI stocks that are more promising than PAYS but are trading at less than 5x P/E, check out our report on the cheapest AI stocks.
Read next: $30 trillion opportunity: 15 humanoid robot stocks to buy, according to Morgan Stanley and Jim Cramer, says NVIDIA has ‘become a wasteland.’
Disclosure: None. This article was originally published on Insider Monkey.
