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The S&P 500 continues to chart an upward path, especially considering recent hints that the U.S. Federal Reserve might lower interest rates at its next meeting.
All this is great news for the five best penny stocks to watch this week. Since penny stocks trade for under $5 a share, even a small change in share price can lead to triple-digit profits. And a catalyst like a rate cut could send stocks surging higher.
That's why our top penny stocks to watch can return more than 200%, according to analyst estimates.
In fact, our top penny stock this week could gain 300%...
Top Penny Stocks to Watch This Week, No. 5: Xinyuan Real Estate
China-based Xinyuan Real Estate Co. Ltd. (NYSE: XIN) is plugged right into China's red-hot real estate market. It's been operating for 22 years, focusing on housing development for middle-income Chinese - a market sector that is rapidly growing.
Currently, China's middle class is over 500 million people strong, the largest middle-class population globally. In just two short years, it's projected to climb to 600 million.
Real estate prices in Beijing soared 54% between 2013 and now. So XIN's developments are rising in demand and value.
Currently, XIN sells for $4.25, but it stands to gain as the Chinese real estate market gains in value.
Top Penny Stocks to Watch This Week, No. 4: AK Steel Holding
AK Steel Holding Corp. (NYSE: AKS) is an Ohio-based steel manufacturer operating eight Midwestern steel plans. It is one of the largest suppliers of steel to the U.S. auto sector.
Its biggest demand driver is the global appetite for steel. Steel demand worldwide is forecast to rise 1.6% by 2020 and to be even stronger in places like India, where demand is projected to climb 5%.
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U.S.-China trade tensions are also putting pressure on overseas steel suppliers, but this could result in enhanced opportunities for U.S.-based companies, AK Steel a chief among them.
Currently, AKS sells for $2.13. Analysts think it can reach $5 over the next year, for a whopping gain of 134%.
Top Penny Stocks to Watch This Week, No. 3: Hi-Crush
Houston-based Hi-Crush Inc. (NYSE: HCR) is a service company for major drilling companies in the United States.
Hi-Crush uses monocrystalline sand to assist in the development of oil wells. It uses 17.3 million tons of this sand annually.
Oil prices have been volatile this the year, but overall, they've risen 27% from 2018 levels. Higher oil prices usually lead to increased drilling, and that's good news as far as HCR is concerned.
The shale drilling business in particular plans to drill 20,000 additional wells in the next year. Monocrystalline sand is crucial to developing these wells.
Over the last four years, HCR has increased profits by 164%.
Currently, the shares sell for $1.91. Analysts forecast a price of $6.00 over the next year, a potential 216% climb.
Top Penny Stocks to Watch This Week, No. 2: Just Energy Group
Canada's Just Energy Group Inc. (NYSE: JE) is a utility company offering renewable energy to 4.5 million customers in Canada, the United States, Germany, Japan, the United Kingdom, and Ireland. Regional suppliers include Tara Energy, Commerce Energy, and Hudson Energy.
JE has a wide energy market network, which means it can optimize its return on equity (ROE) with very little risk. Its current ROE is 540% - an impressive number for any stock, especially a penny stock.
JE currently sells for $4.30 per share but has a target price of $9.99 over the next 12 months. That's a prospective 135% gain for investors.