10 Top Penny Stocks to Watch This Week as Dow Shatters the 28,000-Point Ceiling

The best of last week's 10 top penny stocks to watch, Senmiao Technology Ltd. (NASDAQ: AIHS), gained 268% as the Dow Jones surged past 28,000 points. It was the Dow's 11th record high of this year.

You see, when indexes hit record highs, it lifts the market as a whole. And because of their low share price, penny stocks have the most to gain as they rise with the tide.

But the Dow isn't finished climbing. After looking at some of our other best penny stocks from last week, we'll show you the top penny stock to watch this week as the market soars even higher.

Penny Stock Current Share Price Last Week's Gain
Senmiao Technology Ltd. (NASDAQ: AIHS) $1.07 268.58%
FuelCell Energy Inc.

(NASDAQ: FCEL)

$0.82 89.70%
Nortech Systems Inc.

(NASDAQ: NSYS)

$4.49 66.30%
Astrotech Corp.

(NASDAQ: ASTC)

$1.95 62.50%
Hermitage Offshore Services Ltd. (NYSE: PSV) $1.07 42.57%
CUI Global Inc.

(NASDAQ: CUI)

$0.97 36.62%
Titan Medical Inc.

(NASDAQ: TMDI)

$0.69 36.53%
Aehr Test Systems

(NASDAQ: AEHR)

$2.23 35.98%
Sienna Biopharmaceuticals Inc. (NASDAQ: SNNA) $0.21 35.48%
AgEagle Aerial Systems Inc.

(NYSE: UAVS)

$0.51 33.55%

While these gains already happened, we can find the next penny stock to surge higher using the Money Morning Stock VQScore™ system.

The VQScore uses a proprietary algorithm to find the stocks with the potential to deliver the best returns. It analyzes the profit potential of thousands of stocks, giving them a score from 0 to 4.9.

Out of the stocks scoring a 4 or higher - the "Buy Zone" - we choose the ones trading under $5 to get our list of the best penny stocks for that week.

This week's best penny stock has a near-perfect VQScore of 4.8. This is the penny stock to buy as the market enters uncharted territory...

The Top Penny Stock to Buy This Week

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On Deck Capital Inc. (NYSE: ONDK) is a global online lending company that caters to small businesses.

On Deck will thrive in a market with increased liquidity. As the Dow presses toward record highs, businesses will increase their borrowing to invest in growth. That feeds On Deck's bottom line as the go-to for small business lending.

And business is growing fast. With offices across the United States as well as Australia and Canada, On Deck Capital has a wide reach that allows it to assist local businesses on a global scale. Its Australia branch grew its portfolio more than 80% according to its last annual report.

On Deck has also formed lucrative partnerships with some of the world's largest companies. In June 2016, On Deck Capital entered into a partnership with JPMorgan Chase & Co. (NYSE: JPM) to provide an online lending platform to JPMorgan's small business customers.

In addition to JPMorgan, On Deck Capital has a referral relationship for its lending services with the nation's largest personal accounting and finance firms, including Quickbooks, Wave Accounting, and CreditKarma.

This broad exposure to the small business and personal finance market has paid dividends for both On Deck Capital and its shareholders. This company just became profitable in 2018. But over the last 12 months, it's grown profits further by 18%.

And On Deck Capital doesn't show any signs of slowing down. Analysts have the firm's stock price on track to jump from $4.23 to $6 in the short term as the company continues to grow its exposure and global footprint.

That 41% gain is the high target given by analysts. But with a near-perfect VQScore of 4.8, that's still a conservative estimate.

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