Eighty percent of a stock's yearly moves happen as the market responds to earnings reports. And guess what? It's earnings season.
That means 390% growth for our top penny stock to buy today.
The best penny stocks have the benefit of a high return on a low share price. In fact, the SEC defines penny stocks as those selling for $5 or less. And the best penny stock right now may come close to quadrupling in share price.
Something similar happened with last week's top penny stock, Revolution Lighting Technologies Inc. (NASDAQ: RVLT). The catalyst for RVLT was news in mid-July that it had been given a listing extension by Nasdaq.
RVLT rose $0.17 per share on the news.
That might sound small, but it was a 64% climb in the stock price.
Then again, it is small compared to the 390% we're expecting from one of our top penny stocks this week.
Of course, the downside of penny stock investing is that bad penny stocks can lose big time. They're a volatile asset class, and investors should seriously assess their risk tolerance before diving in.
You should also do some thorough research.
We use our Money Morning Stock VQScore™ system to help with that. This proprietary system ranks stocks with high breakout potential, and all we have to do is select the ones trading under $5 to give you the best penny stocks.
And our top penny stock this week has a perfect 4.75 VQScore. That's the highest score possible, meaning that 390% opportunity isn't just talk.
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Our winner expects to benefit from a boom in the energy exploration industry.
In fact, just last year, natural gas consumption increased by 4.8%, the most rapid pace in eight years. The Energy Information Administration (EIA) projects that consumption could increase as much as 7% over the next few years.
And that clearly lies behind this stock's perfect 4.75 VQScore… It's also why analysts predict it will grow 390%.