Investors looking to invest in penny stocks (learn more about penny stocks here) could keep an eye on Arbe Robotics (NASDAQ:ARBE) and Rigetti Computing (NASDAQ:RGTI). These stocks belong to the tech sector and have received Strong Buy recommendations from Wall Street analysts.
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Rigetti Computing stock has outperformed the broader market over the past year. On the other hand, ARBE witnessed a pullback during the same period. With this backdrop, let’s delve deeper into these penny stocks.
Is Arbe Robotics a Good Investment?
Arbe Robotics specializes in 4D imaging radar solutions for the automotive market. The recent declines in electric vehicle (EV) demand have impacted automakers and ARBE stock.
Arbe is nearing the final stages of ramping up production and has yet to generate significant revenue. However, the company expects to win a substantial number of customers in 2024, which is encouraging. Moreover, its large addressable market, focus on maintaining a solid balance sheet, and cost restructuring initiatives likely support growth.
Four analysts cover Arbe stock, and all recommend buying its shares. The analysts’ average ARBE stock price target of $3.33 implies about 88.14% upside potential from current levels.
Is Rigetti a Good Stock to Buy?
Rigetti stock has gained nearly 55% in one year. This growth is due to the company’s growing on-premises quantum processor unit (QPU) sales. Moreover, Rigetti is on its path to commercialization, which will likely accelerate revenue growth in the upcoming years and significantly boost its share price.
RGTI stock has four unanimous Buy recommendations for a Strong Buy consensus rating. Analysts’ average price target on Rigetti stock is $3.17, which implies 180.53% upside potential from current levels.
Bottom Line
These tech-focused penny stocks sport a Strong Buy consensus rating from analysts and have significant upside potential from current levels based on their average price target. Investors can leverage TipRanks’ penny stock screener to find more such top-rated penny stocks.
