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.
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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.
One of the Best Penny Stocks to Buy This Week Could Soar
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]Our top penny stock today is Antero Resources Corp. (NYSE: AR). This is a Delaware and Colorado--based oil company.
More specifically, it looks for hydrocarbon across the United States. AR looks for and sources natural gas and oil reserves across North America. And its reserves are primarily in the Appalachian Basin.
According to forecasts from the U.S. Energy information Administration, U.S. oil output could increase by 1.5 billion barrels a day by 2020. So that plus Saudi Arabia's oil disruption could make the demand for American oil spike even higher.
If the forecasts are right, the United States will become the biggest oil producer in the world. In fact, it'll be bigger than Saudi Arabia and Russia.
Since AR's profitability relies on domestic oil output, it's in a prime position to benefit global demand.
Analysts forecast its share price could jump as high as $15. That's a 450% increase from today's share price of $2.73. Heck, it even received our best VQScore - meaning it's poised for breakout growth.
That's what makes AR one of the best penny stocks to buy this week.
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Angel investing is taking the world by storm.
Everyday people from coast to coast are now backing little-known startups long before they IPO, and they're exploding in value, becoming worth billions upon billions of dollars.
But when you're in the position to have all of these exciting deals at your fingertips, you need a way to determine which could be winners - and which are nothing more than hype.
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