Penny stocks are not everyone’s cup of tea due to their inherent volatility, and any stock not named Nvidia (NASDAQ:NVDA), up 152% this year, is struggling for relevance. Notwithstanding, aggressive investors choose penny stocks for the prospect of making monster returns with only a few cents and dollars. After all, some of the world’s most successful companies are former penny stocks, with Apple (NASDAQ:AAPL), Monster Beverage Corporation (NASDAQ:MNST), and Ford (NYSE:F) being classic examples.
The average of price targets set by Wall Street analysts indicates a potential upside of 162.8% in Phunware (PHUN). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.
Here is how Arista Networks (ANET) and Phunware (PHUN) have performed compared to their sector so far this year.