05. Conduent Incorporated (NASDAQ:CNDT)
Latest TTM Net Income: $266.00 Million
Closing price on June 26: $2.69
Conduent Incorporated (NASDAQ:CNDT) is gaining traction as one of the most promising penny stocks in the digital services space. With a trailing twelve month net income of $266 million and a share price of just $2.69 (as of June 26), Conduent is a low cost, high potential play that’s worth a closer look.
The company had a solid start to 2025, beating earnings expectations in Q1 with an EPS of 0.13 vs. an expected 0.19. It posted $751 million in adjusted revenue and delivered $37 million in adjusted EBITDA, improving its margin to 4.9%, a 50 basis point increase from the previous year. While total revenue declined year over year, key segments like transportation showed meaningful margin improvement, up 380 basis points, highlighting operational progress.
A major catalyst behind Conduent Incorporated (NASDAQ:CNDT) optimism is its active portfolio restructuring. The company has already completed $800 million in divestitures, paid down $639 million in debt, and repurchased 61 million shares, moves that strengthen its balance sheet and pave the way for leaner, more profitable operations. Management is targeting another $350 million in asset sales in 2025, signaling more upside ahead.
Growth in government and commercial sales pipelines, currently at $3.2 billion, up 16% YoY, further supports the company’s recovery story. Strategic investments in AI based fraud detection and offshore capacity are also starting to bear fruit, especially in the government segment.
Although Q1 free cash flow was negative (typical for H1), the company expects a turnaround in H2 as cost saving programs take full effect. For investors seeking a profitable, undervalued digital transformation stock with improving fundamentals, Conduent Incorporated (NASDAQ:CNDT) offers a compelling penny stock opportunity in 2025.