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Just the possibility of an interest rate cut had stocks soaring at the end of June, but you can find even bigger gains with our three top penny stocks to buy this week.
This is because a small increase in the share price of these affordable stocks will translate into massive gains - sometimes double, triple, or even higher gains for investors.
But not all penny stocks are created equal. Some are poor investments or outright scams. And with thousands of penny stocks available, it can be hard to find which ones are worth your time and money.
Fortunately, Money Morning can help with our proprietary Money Morning Stock VQScore™ system.
This system allows us to scan all of the stocks trading on the market and isolate only those that have the most potential for breakout gains. That's what we've done today to give you this list of the three top penny stocks to buy today.
And our top pick could give early investors returns of 277%.
The Top Penny Stocks to Buy This Week, No. 3: ASE Technology
ASE Technology Holding Co. Ltd. (NYSE: ASX) is the first penny stock on our list for this week.
The Taiwan-based company builds semiconductors. Its specialty is testing and packaging semiconductors as well as electronic manufacturing services on an international level.
ASE is a well-established company that was founded in 1984 and that has more than 90,000 full-time employees. It's rare to find a penny stock with this sort of stability, which is exactly why we're flagging it for you today.
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Its share price has dropped below $5 just over the past year, which makes it officially a penny stock. But it's one to watch - and a bargain for investors looking for market-beating gains.
In spite of the volatility in this sector, a recent tech deal could be a catalyst for growth with this company. ASE invested $60 million in Cypress Semiconductor back in 2016. This sounds like a long time ago, but this investment is paying off for ASE in spades.
On June 3, Infineon Technologies AG (OTCMKTS: IFNNY) announced it was acquiring Cypress Semiconductor at a $10 billion price tag. It paid a 46% premium on shares of Cypress, which was an incredible return on the ASE investment in this firm.
Even ignoring this deal, the VQScore reveals that ASE is a top penny stock to buy now. Its VQScore of 4.15 places it firmly in the "Buy Zone."
ASE expects its net profits to grow 29% over the next year, from $892 million to $1.15 billion.
Shares currently trade at $4.13, which is 13 times the estimated earnings for the year, but with such a great VQScore, the returns could be even higher.
The Top Penny Stocks to Buy This Week, No. 2: AK Steel Holding Corp.
AK Steel Holding Corp. (NYSE: AKS) is our second top penny stock pick for the coming week.
It is a steel manufacturing company based in Ohio. Founded in 1993, it currently employs over 9,500 full-time people.
The company operates eight steel production and processing plants across the Midwest and is one of the U.S. auto market's largest steel suppliers.
The demand for steel globally is expected to jump by 1.6% by 2020. This rise is expected to be as high as 5% in countries like India.
Now that Washington has imposed trade restrictions on steel coming out of China, this creates new opportunities for domestic steel companies such as AK Steel.
This is a penny stock that is currently trading at $2.25 per share, but the forecasts for the next 12 months put the share price as high as $5. This would give today's investor a gain of 122%.
This stock also has a perfect 4.75 VQScore, making it one to watch for breakout gains.
But our top penny stock pick for this week has an even bigger upside.
This penny stock could return 277%...