The 3 Best Penny Stocks to Buy Right Now

Penny stock investing can bring large gains in a short period of time - and with a moderate amount of risk - if you know where to look.

You see, not all penny stocks are high-risk investments...

This list of the best penny stocks to buy right now is narrowed to shares that trade on major exchanges.

That means they're closely watched by regulators. And while they don't trade for pennies a share (penny stocks are defined as equities that trade for under $5), they still offer triple-digit profit potential.

They also aren't your average penny stocks. They're not pump-and-dump schemes. They're real companies, with real products and solid balance sheets. And they have some real potential.

Here are the three best penny stocks to buy right now...

Best Penny Stocks to Buy Right Now No. 1: Frontier Communications

Frontier Communications Corp. (Nasdaq: FTR) provides voice, data, and video services to residential, business, and wholesale customers in the United States.

Best Penny Stocks to Buy Right NowAs of Dec. 31, it had approximately 3.2 million residential customers, 304,700 business customers, 2.3 million broadband subscribers, and 586,600 video subscribers.

The Stamford, Conn.-based company reported better than expected Q2 results this week. Earnings per share (EPS) came in at $0.03, a penny better than estimates. Revenue of $1.368 million was in line with projections. The company also raised its FY2015 cash guidance to $825 to $855 million, up from $785 to $825 million.

In mid-July, Jefferies upgraded Frontier to "Buy" from "Hold," with a $6 price target. The company is "well positioned financially and doesn't face the same dividend risk that its peers must confront," the firm said.

In May, Frontier received Federal Trade Commission (FTC) approval for its pending acquisition of Verizon's wireline operations in California, Florida, and Texas.

"The financial benefits of the pending Verizon Communications Inc. (NYSE: VZ) deal may be under-appreciated, providing ample support to the dividend," Jefferies analysts said in a statement.

Frontier pays a semi-annual dividend of $0.10 for a 6.9% yield. Shares are up 8% in the last month and currently trade just over $5 each.

Continue reading for two more of the best penny stocks to buy right now...

Best Penny Stocks to Buy Right Now No. 2: GlobalSCAPE Inc.

GlobalSCAPE Inc. (NYSEMKT: GSB) is a leading developer of secure information exchange solutions.

On July 30, the company reported Q2 revenue of $7.9 million. That was an 18% increase year over year (YOY).

Revenue for the first six months of 2015 jumped 19% YOY to $14.7 million. EPS came in at $0.06, up from $0.02 in the same quarter a year ago. The San Antonio, Texas-based company has cash, cash equivalents, and long-term investments of $16.1 million with no debt.

In June, GlobalSCAPE was named to the San Antonio Business Journal's 2015 Fast Track list of companies with $10 million or more in revenue. The Fast Track award recognizes the fastest growing companies in San Antonio based on percentage growth in revenue. GlobalSCAPE also made the list in 2012 and 2013.

GlobalSCAPE enjoyed record-breaking revenue growth in three of four quarters in 2014, and for 2014 overall. The launch of several new products, and enhancements to its sales and engineering structure, spurred the growth.

At $3.40, shares are up 53% year to date. The stock has a dividend yield 1.8%.

Best Penny Stocks to Buy Right Now No. 3: GigOptix Inc.

GigOptix Inc. (NYSEMKT: GIG) is a leading supplier of advanced high-speed semiconductor components for use in long haul, metro, cloud connectivity, data centers, consumer electronics links, and interactive applications, through optical and wireless communications networks.

In early May, GigOptix announced it received a $7.9 million order with a large aerospace and defense contractor to deliver ASIC (application-specific integrated circuit) products.

These chips are used in digital voice recorders or high-efficiency Bitcoin miners.

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"This significant order, with scheduled shipments throughout early 2017, confirms the acceptance of GigOptix's mature products in the field of ASIC for advanced mil-aero applications," the company said.

"GigOptix continues to serve legacy customers and acquire new accounts in established and emerging government and commercial markets."

On July 27, the San Jose, Calif.-based company reported Q2 2015 revenue rose for the fifth consecutive quarter to $9.8 million. That was up 22% YOY and up 9% quarter over quarter. Revenue for the first half of fiscal 2015 was $18.9 million, up 23% YOY.

Looking ahead, revenue in Q3 is projected to come in at roughly $10.3 million. That would be a record for the company and would represent an increase of approximately 21% YOY.

At $2.31, shares are up 92.5% year to date.

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