10 Top Penny Stocks to Watch This Week (April 9)

While the Dow Jones rose a modest 1.8% last week, half of last week's top penny stocks posted gains of over 40%. We'll take a close look at these profits in our list of the 10 top penny stocks to watch this week. We'll also share the best penny stock to watch this week for explosive gains.

You see, penny stocks are a great opportunity for investors seeking significant gains without the stumbling block of a large initial investment.

Just look at last week's biggest gainer, Rennova Health Inc. (OTCMKTS: RNVA). Rennova shares surged in high-volume trading last Thursday (April 5). While Rennova did not announce any specific news that would drive trading volume higher, the company's stock experienced a 45% boost in trading volume, driving the stock's price up significantly.

Top penny stocks

Rennova stock ended the week at $0.02, up 73% from the week's starting price.

A 73% gain is exciting, but we aren't anticipating any more gains like that for Rennova. After looking at the 10 top penny stocks to watch this week, we'll take a close look at the best penny stock to keep an eye on for strong future gains...

Penny Stock Current Share Price Last Week's Gain
Rennova Health Inc. (OTCMKTS: RNVA) $0.018 73.63%
CASI Pharmaceuticals Inc. (Nasdaq: CASI) $6.27 68.11%
Eleven Biotherapeutics Inc. (Nasdaq: EBIO) $1.57 42.86%
BioLife Solutions Inc. (Nasdaq: BLFS) $7.52 39.77%
Broadwind Energy Inc. (Nasdaq: BWEN) $2.87 38.64%
Capstone Turbine Corp. (Nasdaq: CPST) $1.44 37.73%
CorMedix Inc. (NYSE: CRMD) $0.23 25.76%
Senseonics Holdings Inc. (NYSE: SENS) $3.84 24.17%
EyeGate Pharma Inc. (Nasdaq: EYEG) $0.37 24.00%
Tintri Inc. (Nasdaq: TNTR) $2.13 23.68%

While penny stocks can provide investors with significant gains like these, it's important to note that they are also inherently risky. While there are a few penny stocks that have tremendous growth potential, many of them pose a significant risk to retail investors.

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In order to avoid these pitfalls, check our five rules for safely investing in penny stocks, on the right.

Rules for Safely Trading Penny Stocks

  • No more than 2% of your overall stock portfolio should consist of penny stocks.
  • Avoid stocks with average daily trading volume of less than 500,000 shares.
  • Avoid penny stocks being aggressively promoted on public discussion forums or websites not focused on investing.

Here are the top three warning signs of a shell company scam, according to the SEC and FINRA...

  • If a company has been dormant for many years and then brought back to life.
  • If a company has changed its name and, especially, business focus multiple times.
  • Check for massive reverse stock splits like 1-for-20,000 or 1-for-50,000.

In addition to following these rules, our team uses the Money Morning Stock VQScore™ to identify penny stocks that have real growth potential.

Developed from our proprietary valuation system, the VQScore identifies undervalued stocks with the highest profit potential by using a blended analysis of a company's earnings potential, growth rate, earnings-per-share acceleration, and market volume.

The VQScore system runs on a scale of 1 to 4, with 4 indicating a stock with strong growth potential.

Our top penny stock to watch this week has a VQScore of 4, indicating that it has strong underlying value and a high chance of providing significant gains for investors.

This company's return on equity (ROE) - the amount of profit a company brings in based on the amount of money invested in the company - is over 400% higher than its industry's average. This indicates that the company is well-managed and has the potential for spectacular growth.

Here's our top penny stock for this week...[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]

Entravision Communications Is the Top Penny Stock to Watch This Week

Entravision Communications Co. (NYSE: EVC) is a Spanish-language media company based in Santa Monica, Calif.

The company maintains both radio and television stations in 20 of the nation's top 50 Spanish-speaking markets and operates 58 primary television stations across the country.

Entravision's profit potential lies with the rapidly expanding Latino community, which makes up the majority of the company's viewing base.

From 2000 to 2014, Latinos accounted for more than 50% of the nation's total population growth, bringing the nation's total Latino population to roughly 55 million people.

Over the next 10 years, the American Latino population is expected to expand by another 24 million Latino Americans - an increase of over 30%.

This growing audience is already showing in the company's growth. Over the last year, the company had a ROE of 49.84%. That's over 400% higher than the industry average of 11.99%.

With an expanding consumer market continually seeking new content from major Hispanic media outlets, it's likely that Entravision will experience sustained growth well into the future.

And Wall Street agrees with us. Analysts have put a high price target of $11 on the company's stock - a 119% increase on today's price of $5.02.

But you don't have to stick with penny stocks to find explosive profits in the stock market. In fact, we can show you how...

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With one tiny company at the heart of this massive shift, even a small investment could create staggering wealth for years to come.

Continue here to learn more...

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