The top penny stocks to buy in 2019 can bring you massive returns and can even double your money in short order. That's why we're bringing you five of the best penny stocks to watch in January.
Penny stocks are defined as shares selling for $5 or less each. So even a small move in share price can result in huge percentage gains for investors.
While penny stocks can be risky, as they tend to be more volatile than shares of higher-priced stocks, the best of the class can yield skyrocketing returns.
There are over 2,500 penny stocks currently on the market. But we've narrowed the list down for you. We've utilized our Money Morning Stock VQScore™ to screen them all and choose only those with major growth potential.
The VQScore system screens thousands of stocks every day and boils a stock's total financial picture into just one number: its VQScore.
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Then, we find the stocks currently trading below a per-share price of approximately $5.
The result is a top five list of top penny stocks. And our very first choice has the potential to skyrocket 75% this year alone...
Penny Stocks to Buy in 2019, No. 5: Central European Media Enterprises Ltd.
Our No. 5 pick is Central European Media Enterprises Ltd. (NASDAQ: CETV), which is based in Bermuda. It's a subsidiary of U.S.-based Warner Media and broadcasts in four major markets in Eastern Europe.
CETV's audience totals over 40 million viewers and listeners. It offers 29 television channels.
In 2009, Warner Media bought a 31% stake in CETV. Over the intervening years, it has purchased more and more, so it owns 75% currently. That speaks well of Warner Media's confidence in the company.
In the past four years, the company has grown gross profits 14% and grown income 121%.
These strong patterns of growth are likely to continue going forward, too. The projection for revenue growth from paid TV, for example, is 20% over the next two years in CETV's four top markets.
The share price is currently $3.24. Analysts on Wall Street are estimating a $4.85 target price in a year, for close to a 50% gain.
Penny Stocks to Buy in 2019, No. 4: America First Multifamily Investors LP
Our No. 4 pick is America First Multifamily Investors LP (NASDAQ: ATAX). The company is a Burlington Capital Real Estate subsidiary specializing in mortgage revenue bonds (MRB) exempt from U.S. federal tax.
Both state and local governments issue MRBs to drive construction of affordable housing. ATAX uses the MRBs as financing for construction and to obtain interest that is tax-free. ATAX has 87 MRBs in its portfolio.
In the last decade, the United States has enjoyed a historically strong housing boom. As a result, the decade has been very profitable for America First.
ATAX has enjoyed a 70% climb in its gross profits during the past five years. During the same time, the company's net income rose 79%.
Observers believe these robust results will be sustainable in years to come as well. In fact, according to Tradesmen International, housing construction is estimated to rise by 4.5% over the next several years. Industry profits by 2020 are estimated at $1.2 trillion.
America First is a likely beneficiary of the potential for profit - and investors will share in the benefits.
ATAX has our highest VQScore and sells at just $5.82 per share.
Penny Stocks to Buy in 2019, No. 3: Container Store Group Inc.
Container Store Group Inc. (NYSE: TCS) specializes in storage and organizational products.
In the past two years, the company has opened 80 new chain stores nationwide in the United States, a robust campaign of expansion.
The expansion has resulted in a 7% rise in gross income during the last two years, a peak of profitability.
In the same period, net income advanced 277%. Costs either held stable or fell.
TCS is also reducing its debt at the same time it grows, an impressive testament to its bottom line strengths. In just 2018, the amount of debt on the books fell 10%. During the last six years, the debt outstanding has decreased 30%.
Investors should feel confident in a strategy this well-executed.
TCS currently trades at $5.84 per share. But the VQScore is forecasting a significant breakout.
Keep reading for our top two penny stocks to buy now...
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Penny Stocks to Buy in 2019, No. 2: BlackRock Capital Investment Corp.
BlackRock Capital Investment Corp. (NASDAQ: BKCC) was founded in 2005 to provide financing for mid-cap firms. It currently manages capital resources of roughly $1 billion. Its most common investments are in the $10 million to $50 million range.
The company's most critical strength is its utilization of a number of types of investments that are usually not used by traditional banks and financial firms. These allow BKCC to facilitate the growth of mid-cap firms.
Unusually for a penny stock, BlackRock Capital has a high dividend yield of more than 13% yearly. That makes it even more of an attractive investment.
At today's trading price of $6.08, BKCC has risen above the classic definition of a penny stock. But it's still a much more affordable financial sector entry point than, say, Goldman Sachs Group Inc. (NYSE: GS), which currently sells for $174.
Penny Stocks to Buy in 2019, No. 1: Himax Technologies Inc.
Himax Technologies Inc. (NASDAQ: HIMX) started in 2001 and is based in Taiwan. It is a leading manufacturer of semiconductors.
Since its inception, HIMX has come to be a crucial supplier for some of the 21st century's most innovative tech firms.
One example is the OLPC XO laptop, priced at an affordable level, but also highly powerful. It was designed to nurture education in the developing world.
Yet its crucial profits have stemmed from HIMX's partnerships with the world's most innovative tech companies.
Case in point: a partnership between HIMX and Alphabet Inc. (NASDAQ: GOOGL) to produce the liquid crystal for Google Glass' silicon chips, entered into five years ago.
Because of the partnership, GOOGL now owns 6.3% of a Himax display. This increases the chances that GOOGL will partner more with Himax going forward, and Google's parent is one of the most innovative tech firms.
The best part is this: Wall Street analysts forecast an $8 share price in a year, an extraordinary 103% gain. Now, that's powering a portfolio.
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