Shares of IoT solutions provider Inseego (NASDAQ:INSG) are currently selling for $5.13 USD on the NASDAQ exchange. Shares have been volatile year-to-date in 2019, with highs of $5.87 and lows of $4.24. At present, INSG stock is selling for $5.13, up 1% approximately on the day.
INSG Stock
With a market cap of $403.90 million, Inseego is a small-cap play in the IoT sector offering bags of potential. According to analyst Anders Bylund:
“Inseego looks like a slam-dunk winner in this sea change, no matter what the big boys end up doing.”
The reason for the optimistic sentiment is that Inseego is already a leading supplier of 4G wireless connectivity solutions for the current generation of the Internet of Things. Now, it is evolving to be a leader in 5G opportunities—the next generation of IoT.
The company offers enterprise-grade cloud computing and IoT solutions for businesses of all sizes. Now, analysts at Cowen are expecting “Inseego to harvest average revenue growth of roughly 20% per year over the next five years, valuing Inseego’s stock at nearly 80% above its current price.”
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INSG Stock and Verizon
The company recently partnered with Verizon Communications (NYSE:VZ). The communications giant launched its fifth 5G-enabled device, Inseego’s MiFi M1000.
The MiFi M1000 is Inseego’s technology at its finest; it gives Verizon customers a “business-ready 5G device that combines bandwidth and speed to meet customers’ expectations, with enterprise-grade security for businesses.”
Partnering with giants such as these, demonstrate the company’s dominance within the 5G market place. It is admirable for a small-cap company.
The Takeaway
Bylund goes on to say that at present, INSG is “unprofitable…alongside negative free cash flows.” For some investors, that might be a deal-breaker.
However, keep in mind the massive 5G market that Inseego is already exploring and seems to be excelling in. There is long-term potential here, but what are your thoughts on INSG stock?
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