The global economy has been in an uproar after the coronavirus outbreaks developed into a pandemic. Investors are trying to save cash, avoiding risky ventures. However, the epidemic won’t last forever, and it is worth thinking about the future. In the face of crisis, experts recommend buying those stocks, which are easily affordable but still will bring hefty profits to shareholders. Penny stocks are of such a variety.
Zix is a small-cap cybersecurity company that specializes in providing safety for emails. Zix’s products allow loss prevention and data encryption for mobile applications. The company has over 20,000 customers and 30% of U.S. banks use its cloud app.
While 2019 was a mixed year for Zix, the company saw strong YoY growth thanks to its reliable product. Even though its earnings and revenue missed the forecasts, they both surpassed last year’s results. The top-line revenue reached $50.4 million, which was significantly higher than $18.5 million in the fourth quarter of 2018.
Furthermore, Zix’s product is widespread, and the company already owns a 22% share of the market. Analyst Nehal Chokshi from Northland Securities noted that the company has great potential. His offered price at $8 per share has a 100% upside. Craig-Hallum’s Chad Bennett set his price target at $9, with the possibility of a 125% gain for shareholders.
What about Plug Power stock?
Plug Power is the other penny stock that holds promising reports. This company is a designer as well as a manufacturer of hydrogen fuel cells, a technology with the potential to replace conventional batteries. Unlike batteries, hydrogen fuel cells can run at a constant power output. It means they can avoid the power drop that batteries experience when their charge runs low.
Plug Power has a deal with the USPS, and it also provides power cells for a fleet of electric mail delivery vehicles in Maryland. The stock is on track to achieve its goal of $1 billion in revenue by 2024. It has already provided guidance toward $300 million in billings for the current year. H.C. Wainwright’s analyst Amit Dayal raised his price target to $6.00 for this stock, which implies an upside of 63%.
