SURG - SurgePays Stock Is An Exciting Undervalued Small Cap To Buy
2024-03-08 06:29:05 ET
Summary
- SurgePays, Inc. is a Tennessee-based tech firm providing mobile broadband, fintech solutions, cloud services, blockchain software, and lead generation services.
- SurgePays reported strong financials with a significant increase in gross profit and positive EBIT.
- The company's main growth driver, the Affordable Connectivity Program, is at risk of losing funding, but I believe it will be extended before the U.S. election.
- Considering the company's relatively small market cap, and looking at the median P/E ratio of its peers, I think SURG should be trading at $10-$12 by the end of 2024.
- Given the upside potential of 43-71%, I rate SURG as a "Strong Buy" today.
My Investment Thesis
With a market capitalization of just under $100 million and a price-to-earnings ratio of 4.54x, SurgePays, Inc. ( SURG ) stock seems to me to be a very attractive investment in the medium term in light of the recent news about the new cooperation with SIN PIN and the prospects for maintaining margins in general.
My Reasoning
Based on Seeking Alpha's description, SurgePays, Inc. is a Tennessee-based tech and telecom company offering mobile broadband services, fintech solutions for corner stores, ShockWave cloud-based services for telecoms, Surge Blockchain software for wholesale goods, and lead generation for law firms. SurgePays serves over 250 thousand subscribers and more than 8,000 locations nationwide, according to the recent IR presentation material :
SURG's IR materials