5. Evolv Technologies Holdings, Inc. (NASDAQ:EVLV)
Share Price as of July 12: $2.86
Number of Hedge Fund Holders: 21
Our 5th best NASDAQ penny stock to invest in, Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) offers artificial intelligence (AI)-based weapons detection for security screening. The company’s product offerings include a touchless security screening system called Evolv Express and Evolv Insights that offers self-serve access to data and analytics for clients to be able to carry out security screening operations.
All over the world, concerns over public safety have reached an all-time high with the increasing frequency of tragic events such as mass shootings and other acts of violence. Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) is one of the companies of choice because of its approach to security screening. The company uses touchless screening technology powered by AI and advanced sensors to offer solutions designed to assess threat levels while minimizing false alarms to venues across various sectors like schools, retail outlets, workplaces, hospitals, and more.
Evolv Technologies (NASDAQ:EVLV) has been continuously seeing new customer acquisitions, expanded deployments among existing customers, and strengthened partnerships with channel distributors, which led to a 17% year-over-year increase in revenue in Q1. The growth points to the company’s focus on subscription-based models, and its moving away from traditional one-time product sales.
Evolv has seen significant adoption across major sporting events, as it has deployed around 75 Evolv Express systems since the beginning of 2024, including at high-profile events like the world’s largest sporting event in France (which one, name it) and in support of security operations for the Detroit Police Department.
Evolv Technologies Holdings, Inc.’s (NASDAQ:EVLV) management has mentioned that its Evolv Visual Gun Detect has sparked customer interest as it addresses a critical need across multiple vertical markets. The new offering enhances security measures by identifying individuals carrying concealed or openly displayed firearms within or near venues.
The strong market interest in Evolv Visual Gun Detect points to its potential to become an important solution in the ever-changing landscape of threat detection technologies. Evolv Technologies (NASDAQ:EVLV) expects its subscription-based products to further customer relationships and extend the reach of the Evolv ecosystem.
Evolv Technologies Holdings, Inc. (NASDAQ:EVLV) was part of 21 hedge funds’ portfolios in the first quarter with a total stake value of $91.515 million. The stock has a consensus Buy rating among 6 analysts, and its average price target of $5.88 represents an upside of 105.5% from current levels, as of July 12.
Even though Evolv Technologies (NASDAQ:EVLV) is unprofitable right now and might even be risky to invest in, its offerings, which will be both digital and physical, will be designed to meet the specific security requirements of diverse customer segments. The company is part of an industry that is expected to reach $2.3 billion by 2033 from $707 million in 2023, growing at a CAGR of 12.4%, as per a report by Future Market Insights.
Evolv Technologies (NASDAQ:EVLV) is one of the best penny stocks to invest in, given that its addressable market is going to expand and it has a lot of room to run, as evidenced by its balance sheet. As of Q1, the company had cash, cash equivalents, marketable securities, restricted cash of $81.3 million, and no debt. Moreover, the company has a strong recurring revenue model which grew by 96% annually by the end of Q1 to $82.5 million.
