8 Most Profitable Penny Stocks To Invest In

1. OraSure Technologies Inc. (NASDAQ:OSUR)

TTM Net Income: $27 million 

5-Year Net Income CAGR: 6.71% 

Share Price as of October 9: $4.09

Number of Hedge Fund Holders: 29

OraSure Technologies Inc. (NASDAQ:OSUR) is a medical technology company that develops and manufactures oral fluid-based diagnostic tests. These tests are used for various purposes, including HIV screening, sexually transmitted infection (STI) testing, and other medical diagnostics.

It is experiencing growth in Syphilis Health Check and multiproduct sales for HIV, HCV, and Syphilis tests. The company achieved a WHO PQ milestone and launched new FDA-cleared packaging for OraQuick HIV self-test. It expanded Syphilis Health Check and ORAcollect Dx partnerships. It continues investing in innovation and operational improvements to drive sustainable growth. The sample management solutions are expanding into emerging markets, such as liquid biopsy and animal health.

OraSure Technologies Inc.’s (NASDAQ:OSUR) Q2 2024 revenue was $54.34 million, including $18.9 million from COVID-19 products. Core revenue declined 7% year-over-year, impacted by the exit of Diversigen Molecular Sequencing Services. The overall revenue declined 36.41% this quarter.

It’s making progress on cost reduction initiatives, including exiting Diversigen, closing a Belgian site, and internalizing production. These actions are expected to save over $15 million annually and help achieve breakeven in operating cash flow. The company has a strong balance sheet with $267 million in cash. Q3 revenue is expected to be $37-41 million, with a core revenue of $36-39 million.

The company’s strategic transformation is progressing well. It’s focused on improving operational efficiency, streamlining its portfolio, and expanding market access, and is therefore well-positioned for long-term success.

While we acknowledge the growth potential of OraSure Technologies Inc. (NASDAQ:OSUR), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than OSUR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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