These 2 Top Penny Stocks to Buy Could Surge Up to 300%

The top penny stocks to buy aren't in sketchy companies you've never heard of. They're actually in profitable companies with real growth potential.

You see, penny stocks are notoriously volatile, and because they offer the potential for huge upside swings, investors can be duped into buying into scams or shell companies.

Penny stocks trading on over-the-counter exchanges or pink sheets where financial reporting requirements are less strict are the most risky. That's why we look for penny stocks trading on the New York Stock Exchange or Nasdaq.

This is where investors can find the best penny stocks in profitable companies with real growth potential.

Take a stock like Denny's Corp. (NASDAQ: DENN). Denny's was trading for just under $3 a share in 2010. Since then, it's exploded by more than 700% to trade for $17.64 a share today.

Or look at Sirius XM Holdings Inc. (NASDAQ: SIRI). It traded for just $0.70 in 2010. Now it's worth $5.90 a share, an incredible 778% surge.

Those are the sorts of potential gains the top penny stocks offer, and you wouldn't have to trade sketchy shell companies on pink sheets to access those gains either.

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Now, even buying penny stocks in real companies on major exchanges isn't risk-free. That's why we recommend that less than 2% of assets be devoted to speculative plays like penny stocks.

But for those willing to tolerate the risk to find explosive opportunities, we've got two of the best penny stocks you can find right now…

Top Penny Stocks to Buy Now, No. 2: ASE Technology Holding Co. Ltd.

Investors looking to buy a penny stock need to apply the same metrics as they do to other stocks. In other words, earnings and revenue growth matter the most in penny stocks and in every stock.

ASE Technology Holding Co. Ltd. (NYSE: ASX), a semiconductor firm, has outstanding earnings and growth potential that should propel the shares upward.

It raked in $838 million in pure profits last year on top of $12 billion in sales. It's grown its profits by 10% a year for the last three years in a row, and the company has boasted a profit margin over 6% for the last decade.

Trading for just $4.01 a share and at a price/earnings ratio of just 9.5, more than half the S&P 500 average, it's a steal right now.

But our top penny stock to buy now is even better.

It offers over 300% potential upside…