We recently published a list of 7 Best Nanotech Penny Stocks to Invest In. In this article, we are going to take a look at where Lightwave Logic Inc. (NASDAQ:LWLG) stands against other best nanotech penny stocks to invest in.
Nanotech involves working with tiny particles which are about the size of molecules. This field is being used to improve products in many different industries, like electronics, medicine, and energy. By manipulating matter at this tiny scale, materials and devices with special properties can be made. The global nanotech market was valued at $3.69 billion in 2022 and is projected to grow at a 33.1% CAGR from 2023 to 2030, as reported by Grand View Research. This is driven by the increased use in medical diagnostics and imaging, technological advancements, substantial R&D funding, and the creation of advanced materials for healthcare, electronics, aerospace, textiles, transportation, manufacturing, and agriculture.
In 2022, nanodevices dominated the nanotech market, accounting for over 58% of global revenue. This was due to their potential in healthcare (targeted drug delivery, imaging, diagnostics, regenerative medicine) and electronics (smaller transistors, memory devices, sensors). Nanosensors, which are crucial for nanoscale detection and measurement across many industries, are projected to grow. Healthcare and pharmaceuticals led applications in 2022, with over 26% market share. This was driven by the increased use of nanotech in areas like surgical nano-robots, nano-diagnostics, and targeted drug delivery, as well as rising chronic disease prevalence and surgical procedures. The automobile segment is also expected to grow due to nanotech’s improvements in materials, energy efficiency, safety, and functionality.
While the nanotech industry as a whole holds promise, it is still in its early innings and many companies are in the small-cap territory.
Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the top nanotech stocks under $5. We then selected the 7 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A photograph of a technician using a microscope to examine a photonic device.
Lightwave Logic Inc. (NASDAQ:LWLG)
Number of Hedge Fund Holders: 3
Share Price as of February 11: $1.7
Lightwave Logic Inc. (NASDAQ:LWLG) develops nanotech-enabled photonic devices and electro-optical polymer materials for fiber-optic communications and optical computing. It designs and synthesizes organic chromophores for its electro-optic polymer systems, which align with nanotech applications. These are used in modulators and polymer photonic integrated circuits for converting electrical signals to optical signals.
The company has a unique electro-optic (EO) polymer technology. These polymers are designed to transmit data at much higher speeds while using less power, all within a smaller device footprint. This is an advantage in today’s data-intensive world. The company is using these polymers to develop next-generation photonic devices. These devices convert data from electrical signals into light (optical) signals. This conversion is essential for high-speed data transmission, with key applications in telecommunications and GenAI.
A significant achievement for Lightwave Logic Inc. (NASDAQ:LWLG) is demonstrating drive levels below 0.5V with its EO polymer modulators. This is an improvement in performance and power efficiency, making its technology attractive for data centers. The company had $27 million in cash and cash equivalents as of September 30, 2024. This funding is sufficient to support its operations through February 2026.
Overall, LWLG ranks 3rd on our list of best nanotech penny stocks to invest in. While we acknowledge the growth potential of LWLG, 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 LWLG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
