8 Penny Stocks with Biggest Upside Potential According to Analysts

5. Globalstar, Inc. (NYSE:GSAT)

Share Price: $1.20

Upside Potential: 231.20%

Number of Hedge Fund Holders: 16

Globalstar (NYSE:GSAT) is an international telecom infrastructure provider offering wholesale capacity services and mobile satellite services such as voice and data communication through its global satellite network. The company offers these services over its network of ground stations and in-orbit satellites. Its communication services include an elaborate portfolio, including two-way voice communication and data transmissions via its GSP-1600 and GSP-1700 phone, one-way or two-way communication and data transmissions using mobile devices, one-way data transmissions using a mobile or fixed device, and others.

Globalstar (NYSE:GSAT) experienced a solid second quarter, undergoing a 10% year-over-year total revenue increase. Total revenue reached a record high of $60.4 million in Q2, with cash on hand reaching $64 million. The company is continually building liquidity ahead of its milestone payments because of its next-generation satellite vendors in the coming months. 95% of these costs are recovered through contractual service fees throughout the satellite lifetime. These satellites are on schedule, with the first launch expected in 2025.

The company boasts a fully funded business plan with a solid foundation of contractual cash flows expected to grow, positioning the company in a robust financial landscape. It is also making targeted investments in consumer retail offerings, capitalizing on the opportunity to make reasonable economic returns in the domain.

In addition, Globalstar’s (NYSE:GSAT) consumer IoT business is continuing to grow, experiencing substantial success in testing new technologies that boost the company’s profitability. It is also engaging its existing consumer base to develop an efficient plan to roll these capabilities out.

The company has also made substantial additions to its product development organizations on both the engineering and commercial sides. This positions the company to bring its technologies and products to market in a streamlined fashion.