Tech penny stocks could very well be the biggest winners in 2019. When you have FAANG stocks in your industry, it’s hard to ignore other companies that may be the next under-the-radar winners.
The CSLT penny stock has been getting some attention lately. Let’s see what the fuss is about.
Currently selling for $2.96 USD and up 5.34% at the time of writing, the CSLT penny stock has been on a bull run as of late. The company has been steadily climbing across January, growing 25.89% in value over the month. Year-to-date, the stock has grown almost 30%. Now, analysts are setting a price target of $4.51 to be reached in the next year period.
This figure represents a growth of approximately 60% from its current selling price.
Castlight Health Inc
Castlight Health Inc (NYSE:CSLT) provides a software-as-a-service platform. Based in San Fransisco, the company’s service is used for health benefits navigation for employees in the US. Its platform links employees in the healthcare sector to resources made available to them by their employer. In essence, the platform helps employees to manage their benefits.
The company derives its revenue from sales of cloud-based subscription service and professional services contracts. Castlight generates its geographical revenue from the United States.
The CSLT penny stock suffered a massive blow in mid-2018 when one of Castlight’s largest customers, Walmart (NYSE:WMT), announced it would let its contract with the company expire. The loss prompted Castlight to restructure its business “to align its operations with its evolving business needs.”
The result of the loss meant the company dropped significantly from its highs of $5.60 per share. It has found it difficult to recover since.
The Bottom Line
This penny stock is in a lucrative position as it marries two very exciting sectors for investors; tech and healthcare. All this company needs is another major contract to heal the damage done by Walmart. 2019 is showing promising signs already and with analysts predicting the stock to more than double, now could be a time to take a closer look at CSLT stock.
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