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Inseego Surges 752% YTD: Is it Too Late to Jump Into the Stock?

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Inseego (INSG - Free Report) shares have surged 751.7% year to date compared with the Zacks Computer & Technology sector’s growth of 25.5% and its Zacks Internet Software industry’s return of 26.2%.

INSG is gaining from its strong portfolio of high-performance 4G and 5G WAN solutions, including MIFI hotspots, routers and gateways, which provide secure and reliable broadband connectivity.

Inseego’s mobile portfolio, supported by Inseego Connect and 5G SD EDGE for secure networking, has strengthened its competitive position in the 5G mobile hotspot market.

Inseego Price and Consensus

 

Inseego Price and Consensus

Inseego price-consensus-chart | Inseego Quote

INSG’s Q3 Earnings Estimates Indicate Solid Y/Y Growth

For the third quarter of 2024, Inseego expects revenues between $54 million and $58 million. Adjusted EBITDA is expected to be $6.5-$7.5 million.

The Zacks Consensus Estimate for the third quarter of 2024 is pegged at $56.3 million, suggesting a year-over-year rise of 15.89%.

The consensus mark for the third quarter of 2024 earnings is pegged at 9 cents per share, indicating a year-over-year surge of 105.63%. The estimate has been unchanged over the past 30 days.

INSG’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed the same in the remaining two, the average negative surprise being 181.39%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

INSG Rides on Expanding Portfolio

Inseego recently announced the exclusive launch of its multi-carrier certified MiFi X PRO 5G mobile hotspot for Inseego Ignite channel partners. Previously, this solution was only available for purchase from mobile network operators with network-specific hardware. 

MiFi X Pro, built with the Snapdragon X62 5G Modem-RF System, provides reliable, secure, and fast Internet. It features multiple connection methods, including Wi-Fi, RJ-45 Ethernet port and USB-C port, and connects up to 32 devices. 

Through the Inseego Ignite Channel, INSG provides its partners access to MiFi X Pro — a flexible mobile hotspot solution that supports all major US networks. This announcement strengthens INSG’s market position and helps its partners offer strong connectivity across various industries.

INSG provides a SaaS wireless subscriber management solution known as Inseego Subscribe for carrier partners to manage customer subscriptions.

In August 2024, INSG announced the availability of the Inseego Wavemaker 5G indoor router FX3110 for channel partners. Inseego Wavemaker FX3110 provides a fast and secure cellular solution that supports various applications across all major U.S. carrier networks.

Strong Partner Base Aids INSG’s Prospects

Inseego's strong partner base, including mobile operators Verizon (VZ - Free Report) , T-Mobile (TMUS - Free Report) , and Vodafone (VOD - Free Report) , has been a catalyst.

INSG collaborated with Vodafone Qatar to launch Wavemaker 5G FX2000 indoor router, which provides high internet access for home and business customers. This collaboration is noteworthy. 

Inseego teamed up with Verizon to expand its footprint across different industries. MiFi X PRO 5G mobile hotspot was first introduced in collaboration with T-Mobile.

INSG Struggles With Significant Debt Challenges

Inseego has a leveraged balance sheet with a total debt of $170.7 million. 

In September 2024, INSG voluntarily paid down 49% of its outstanding short-term loan and signed an agreement with another holder to convert $5 million convertible notes into long-term debt and equity.

INSG - Buy, Hold, or Sell?

The INSG stock is overvalued, as suggested by its Value Score of C.

The company currently carries Zacks Rank #3 (Hold), suggesting that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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