This company is a play on the Internet of Things, as well as rising auto sales.
Telenav (TNAV)
From Top Stocks under $10
The demand for connectivity and the “Internet of Things” is happening everywhere—in your home, your cars, your gadgets, and more. There is no limit to how far this trend can go in the next few years – and there is a great way in the sub-$10 stock universe to play it.
My target: Telenav (TNAV) This company counts Ford as its biggest customer. But companies like General Motors, AT&T, and Verizon Communications also round out the list for its location-based and “connected car” products. The stock briefly traded above $10 recently, before being shot down after a quarterly earnings miss.
But opportunity lurks, because in that same quarterly report, the company reported 14.9% sales growth and $5.5 million in free cash flow. Meanwhile, there’s another catalyst that should drive this company in the near term. Tax season refunds should encourage folks to go to the dealer to put a down payment on new cars. That depletes inventories and ramps up manufacturers’ orders to replace them—bullish—for Telenav.
I want you to have exposure to this beaten-down name if our market keeps taking off to the upside, given that Telenav is very close to support levels and has strong upside potential. So, get in now. The average analyst thinks the stock is worth $13, though my initial target is $10.
Mandeep Rai, Top Stocks under $10, published by Money and Markets, a Division of Weiss Research, Inc.,
www.moneyandmarkets.com/services/trading-services/top-stocks-under-10, issues@e.moneyandmarkets.com, 1-800- 291-8545, March 1, 2017