Lantronix is an internet stock. This company is a designer, as well as a developer of network device servers, optimized for the access, configuration, control, and management of IoT protocols. Internet futures are usually very profitable. For the past several years, they multiplied and gathered strength. And the demand is always growing, as more and more people use the internet for work or entertainment.
While lots of stocks collapsed this year due to the pandemic and the resulted crisis, the internet sector fared much better than others. After the lockdowns, the internet became the main source of connection with others, as well as a way to pass the time. Millions of people also use it to work from home.
Some internet stocks skyrocketed, while others managed to avoid a bearish market. Lantronix is one of them. The company’s revenue showed a significant gain in its fiscal second quarter in 2019. It grew by 9% year-over-year and 4% sequentially, reaching $13.2 million.
Lantronix expects to continue gaining, and so far, the stock’s forecast is favorable. Even though the company’s EPS came in at a net loss of 6 cents, compared to the 11-cent loss of the previous quarter, it’s still a success.
Why is this stock a good choice?
Lantronix is moving toward $15 to $17 million in fiscal third-quarter revenue despite supply chain disruptions due to the pandemic and the current crisis. That is down by 11% from previous guidance but still presents 21% sequential growth.
According to Scott Searle, Roth Capital’s analyst, the company performance during the current downturn is satisfying, as the market demand appears to be healthy. He advises grabbing Lantronix due to its strong-buy rating. And currently, it has a good entry point, as the price is lower due to the crisis.
The stock is presently traded at $2.84. The $5 average price target has a 76% upside potential in the next 12 months. However, Searle set his prices to target at $6 for Lantronix, with a 111% upside potential.
