Penny stocks can be risky investments, but they also have the potential to generate huge returns. One penny stock worth considering is Corero Network Security, currently trading at just 19p on the London Stock Exchange’s AIM.
Corero Network Security is a UK-based cybersecurity company specializing in Distributed Denial of Service (DDoS) protection solutions. The cybersecurity market is rapidly growing as businesses and government organizations seek to protect themselves from cyber threats, with cybercrime projected to cost the world $9.5 trillion this year.
The company’s revenue is expected to increase by 25% to $27.9 million this year, with earnings per share expected to reach 3.4 cents compared to 0.0 cents last year. In April, the company reported “significant order momentum” for its SmartWall ONETM DDoS protection solution.
While there are risks associated with investing in penny stocks, such as the evolving nature of cybercrime and competition from larger players in the industry, the low valuation of Corero Network Security with a price-to-earnings (P/E) ratio of just 6.5 makes it an attractive opportunity for investors.
Overall, the risk/reward potential of investing in Corero Network Security looks promising at its current share price. Consider adding this penny stock to your watchlist for potential investment opportunities.