3 Tech Stocks That Could Be Multibaggers in the Making: February Edition


  • These technology firms will add great growth potential and help diversify any portfolio.
  • Arcturus Therapeutics Holdings (ARCT): A biotechnology gem with rapidly expanding financials and intriguing future growth prospects.
  • Cisco Systems (CSCO): A communications technology company with amazing growth potential and solid financial backing.
  • SurgePays (SURG): A unique industry leader learning to balance strong growth with improved profitability.
Tech Stocks - 3 Tech Stocks That Could Be Multibaggers in the Making: February Edition

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We’ve all heard the story with AI by now, and for good reason. It has massive potential to overhaul almost every aspect of our lives. With crazy earnings growth expectations over the next few years, it is no wonder that analysts and just about anyone you know are talking about it.

Alongside AI, technology in general is an industry with explosive potential. These are highly innovative companies coming out with breakthroughs to fundamentally change how we live. And with low dividend yield rates, these companies are investing back into the business to grow it even further. However, many investors don’t have the time to find which technology companies are worth an addition to their portfolio. In fact, many of these companies can be quite risky with their high upside. As such, we have done the research for you and found three tech stocks likely to be multi-baggers in the making.

Arcturus Therapeutics Holdings (ARCT)

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Arcturus Therapeutics Holdings (NASDAQ:ARCT) is a biotechnology company that creates and commercializes treatments for disorders and diseases, most notably COVID-19 and influenza. Yahoo! Finance analysts predict the stock to trade in a one-year price range of $18 to $140 with an average of $65.25.

At the beginning of February, Arcturus announced the success of its newest COVID-19 vaccine booster that produces longer immunity periods and antibody strength. That success will only continue to place Arcturus as a major player in the next rollout of COVID-19 boosters. On top of that growth opportunity, Arcturus has multiple groundbreaking drugs in the pipeline, including treatments for cystic fibrosis and influenza undergoing clinical trials.

Along with intriguing drug developments, Arcturus has an undervalued P/E ratio of 9.82x compared to the industry average of 16.38x. Additionally, with a year-over-year (YoY) revenue growth of 30% and a YoY EPS growth of 974%, Arcturus proves that it has the financial backing and growth potential necessary to be a strong biotechnology candidate for the foreseeable future.

Cisco Systems (CSCO)

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Cisco Systems (NASDAQ:CSCO) is a communications technology company that develops and sells communication hardware and software. Yahoo! Finance analysts predict the stock’s one-year price range to be $43 to $76 with an average of $53.47.

Earlier this month, Cisco collaborated with Microsoft (NASDAQ:MSFT) to renovate the transatlantic cable with high-tech wiring required to support growing cloud and AI services. While this collaboration is only a temporary trial, Cisco’s continued initiative to be involved in the delivery of new services like AI will only drive future growth.

Looking into the financials, Cisco currently holds an undervalued P/E ratio of 14.72x compared to the industry average of 30x. Additionally, it has a YoY EPS growth of around 7%. Cisco’s combination of solid financials and potential to be involved in future worldwide projects proves to be a recipe for a great investment.

SurgePays (SURG)

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SurgePays (NASDAQ:SURG) is a leading telecommunications and financial technology company that utilizes a grassroots-level approach to provide telecom and financial services to unbanked populations. The company’s specialty of empowering lower-income consumers and smaller clerks in convenience stores has garnered an optimistic one-year price target between $13.25 and $15.

Based on the latest management call, SURG is well-positioned to penetrate convenience stores further and expand its national footprint. For example, SURG recently made plans to transition its ACP sign-up approach to convenience stores. That will allow SURG to drive recurring revenues through improved store relationships, enhance customer stickiness and solidify its niche as an innovative wireless telecom and fintech market leader.

Looking at its financials, SURG has made momentous profitability improvements to its hyper-growth strategy in the recent quarter. In its Q3 report, the company improved its EBITDA from a loss of -$0.8 million to $7.5 million. SURG also saw its gross profit margin skyrocket from 5.3% to 30.7% 

With SurgePays’ focus on continuing to manage cash flow and deploy capital for maximum growth, investors should consider this rapidly growing technology stock as their next potential stock pick.

On the date of publication, Ian Hartana and Vayun Chugh did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chandler Capital is the work of Ian Hartana and Vayun Chugh. Ian Hartana and Vayun Chugh are both self-taught investors whose work has been featured in Seeking Alpha. Their research primarily revolves around GARP stocks with a long-term investment perspective encompassing diverse sectors such as technology, energy, and healthcare.

Article printed from InvestorPlace Media, https://investorplace.com/2024/02/3-tech-stocks-that-could-be-multibaggers-in-the-making-february-edition/.

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