3 Penny Stocks to Buy in July 2018

Penny stocks are a great way for investors to chase triple-digit gains without a huge initial investment. That's why we're bringing you the three penny stocks to buy in July 2018.

You see, penny stocks can generate significant returns for retail investors. Just last month, we identified a little-known education company that jumped 267% in just one week.

In order to identify penny stocks with this kind of potential, we use the Money Morning Stock VQScore™ system to find the best stocks under $5 – the SEC's official definition of a penny stock.

Our favorite penny stocks for July have the potential to generate considerable returns. In fact, our top penny stock to buy could jump over 60%.

Here are our top penny stocks for July…

Top Penny Stock to Watch in July, No. 3: Mizuho Financial Group Inc.

The second-largest financial services company in Japan, Mizuho Financial Group Inc. (NYSE: MFG) is a Japanese banking holding company headquartered in Tokyo.

Mizuho controls $1.8 billion in assets, ranking just behind Mitsubishi UFJ Financial Group Inc. in size.

Mizuho divides its financial services among retail banking, global asset management, financial strategy, and corporate investment, giving the company a diverse stream of revenue for the company and its investors.

Thanks to this diversity, Mizuho's business is protected against the volatility that often rocks financial companies in turbulent markets. It also allows Mizuho to tap profit centers throughout the financial industry.

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This is certainly evident in the company's bottom line. Over the last year, Mizuho managed to generate over $57 million in profit while growing earnings by over 2%.

Mizuho currently trades for $3.36. However, analysts see the company's stock heading to $4.00 by the end of the year, locking in a gain of 23% for investors.

While Mizuho's profit potential is promising, our second penny stock to watch is even better.

Top Penny Stock to Watch in July, No. 2: Turquoise Hill Resources Ltd.

Headquartered in British Columbia, Turquoise Hill Resources Ltd. (NYSE: TRQ) is a Canadian mineral exploration firm focused on the Pacific Rim region.

Over the last several years, Turquoise Hill has developed several significant mining projects, including the Oyu Tolgoi Project in Mongolia – one of the world's largest copper and gold porphyry deposits.

Over the last fiscal year, Turquoise Hill has beat earnings by an average of 225% while heavily investing in the expansion of its mining operations across the globe.

The company's rapid expansion and investment has given Turquoise Hill some aggressive production estimates for 2018.

The company's 2017 projections estimated that Turquoise Hill will pull between 125,000 to 155,000 tons of copper and 280,000 tons of gold over the course of 2018.

Last month, Turquoise Hill doubled down on these figures and stated that it had the potential to outpace initial estimates.

Turquoise Hill currently trades for $2.76. However, with rapid expansion fueling rising profit potential, analysts estimate that the company could hit $4.00 in the near future. This is a gain of 43%.

Both Turquoise Hill and Mizuho are great penny stock investments for July. But our top penny stock has better profit potential than both of these picks.

An international steel company, our top penny stock to buy in July, is set to generate substantial returns as trade war tensions continue to rise…