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In the middle of September, major oil refineries in Saudi Arabia were destroyed in drone attacks.
This propelled a big stock sell-off in the energy sector. Fortunately, this sell-off is a big opportunity for penny stocks.
In fact, our top penny stock to buy this week could grow more than 450% following the drone strikes. It's a U.S.-based energy company that's prepared to fill the gap following Saudi Arabia's disruption in output.
And with global tensions and the trade war disrupting the economy, the market's volatility is increasing. One week ago, the CBOE Volatility Index (VIX) jumped higher than its 50-day average. Still, this kind of volatility is a great for the top penny stocks to buy this week.
Because penny stocks' share prices are low, the smallest movements could generate big upsides. If a $1 stock sees a $0.50 gain, that's a 50% increase. And with penny stocks, it could happen overnight.
(To help you find penny stocks with the most profit potential, we put together a quick tutorial, "5 Steps to Penny Stock Trading Success." Download it here.)
Even with their potential high rewards, penny stocks are speculative investments. A $0.50 decrease in share price could be a 50% loss. That's precisely why we suggest only putting 2% of your portfolio toward penny stocks (or whatever money you can afford to lose).
But the top penny stock to buy this week could skyrocket in value over the next 12 months. On top of that, it's trading at a bargain.
To emphasize penny stock growth potential during market turbulence, just look at one of the best penny stocks in September. T2 Biosystems Inc. (NASDAQ: TTOO) increased 107% following a several-million-dollar contract.
So, volatility can actually be a good thing for penny stocks.
You could cash in on the next Alibaba, the next Uber, the next Google. We're talking life-changing IPOs here. And it'll only cost you as little as $50. Click here for the full details…
And to help you profit from the market's most recent movement, we've used our Money Morning Stock VQScore™ system. It searches for and ranks stocks based on whether they have breakout potential. Today, it found a penny stock in the energy sector.
In fact, this penny stock could soar 450% thanks the United States' boom in energy.
Right now, this stock currently trades for $2.73. But analysts expect it to soar to $15 per share over the next year.