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.
So if you're willing to accept the risk associated with penny stock investing, we'll share our favorite penny stock with you.
You Have to See This to Believe It: America's favorite "shark" debuts the Angels & Entrepreneurs Summit. Watch now...
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%.
Our Top Penny Stock to Buy Today
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
Encana Corp. (NYSE: ECA) is a Canadian oil and natural gas explorer. ECA was founded 17 years ago and made the Forbes Global 2000 last year. It is a leading North American energy company.
In 2018, the company produced 1.158 billion cubic feet of natural gas and 89.9 thousand barrels of oil every day, making it one of the biggest North American producers.
Encana holds 1.9 million acres in the United States and 1.7 million in Canada. The holdings are a major reason behind its production capability.
The company's output and size combine to make it a prime supplier for rising demand in natural gas worldwide.
In just the past three years, sales have climbed 73%. Last year, profits rose 29%.
ECA trades at just 6.25 times earnings, while the industry averages 32.47 times earnings. That's how you know this stock is steeply undervalued.
And it's why analysts on Wall Street estimate a share price of $21 per share in a year, soaring 390% over its current price of $4.28.
America's Favorite Angel Investor Shows How Easy It Is for Anyone to Invest in Ground-Floor Startups
You've probably seen stories about this person or that person making an absolute fortune from some unknown startup suddenly becoming a household name... like Uber, Airbnb, SpaceX, or Bird.
Now, it's your turn.
Shark Tank's Robert Herjavec is showing how easy it is for anyone to turn as little as $50 into what can be life-changing windfalls... all from investing in startups.