The start of the new year is always a good time to commit to a goal of making more money. But with the bull market turning 11 and stocks near all-time highs, finding stocks that could more than double your money might seem daunting.
Our 10 best penny stocks to buy in 2020 could gain as much as 181% no matter what happens.
Many of our top penny stocks in the energy sector were already anticipating a breakout due to OPEC supply restrictions and further U.S. drilling in 2020. But growing Mideast tensions means this could happen even faster, on a larger scale.
But that's just the start.
Our best penny stocks in 2020 come from all over. We're going to show you our favorite penny stocks from the telecom, financial, and retail sectors as well. They all have breakout potential in 2020, regardless of anything the pundits say.
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Our 181% gainer is even introducing a whole new kind of wealth to the United States economy.
In a moment, we're going to share that industry, and its most prized stock, with you.
But many of these penny stocks could more than double in price over the next year. So check out our list of the 10 best penny stocks for 2020. Then we'll show you our best penny stock pick of them all.
Best Penny Stocks for 2020, No. 10: Denbury Resources Inc.
Denbury Resources Inc. (NYSE: DNR) is a Texas-based hydrocarbon exploration company. Right now, Denbury's largest operation spans Montana and North Dakota.
This company has a revolutionary method of extracting oil called "enhanced oil recovery."
With this method, Denbury uses carbon dioxide to reactivate oil wells and extract oil that was inaccessible before.
This is also hugely cost-effective, trimming much of the cost that goes into setting up a new drilling site. Shareholders can benefit from how this process increases the company's bottom line.
Over the last four years, the company has boosted profits by 38%. Meanwhile, Denbury has been able to beat earnings expectations for the last four consecutive quarters due to strong demand and growth.
This stock currently trades for $1.61 per share. But analysts give it a price target of $2 as global oil demand rises. That's a solid gain of 25%. And we're just getting started.
Here's a telecom company with almost twice the growth potential and a whopping 10.2% dividend...
Best Penny Stocks for 2020, No. 9: VEON Ltd.
Veon Ltd. (NASDAQ: VEON) is a telecom provider based in Amsterdam. This company has several contracts with the Chinese phone company ZTE. When trade talks took a negative turn last year, ZTE's U.S. market was threatened, which led to launch delays and network outages for Veon.
But ZTE has since regained its foothold, and Veon along with it.
The United States lifting a ban on consumer electronics with the phase one deal was a step further in that direction.
If the U.S. and China continue to make progress in trade talks, Veon will keep benefitting from its partnerships with the world leader in telecom equipment exports (China).
That's why, with some recent headway in U.S.-China negotiations, this stock is poised to give investors a 40% return. Right now, it's trading for $2.56, but analysts give it a target of $3.60.
A special perk with Veon stock is that it delivers a 10.2% dividend yield to shareholders. That makes it one of the best dividend stocks in the market, which is really uncommon for a penny stock. The average yield on the S&P 500 hovers around 2%, for reference. So if you're not holding this for a quick return, you can at least collect regular income on this penny stock.
But this next penny stock has even stronger growth potential...
Best Penny Stocks for 2020, No. 8: On Deck Capital Inc.
On Deck Capital Inc. (NYSE: ONDK) lends money to small businesses around the world.
In the last five years, this company has gone from losing $19 million annually to making $25 million in profits. And it's still growing.
That's thanks to partnerships with some of the world's largest companies. JPMorgan Chase & Co. (NYSE: JPM), for example, reaches its small business customers with help from On Deck through an online lending platform. That began in 2016.
On Deck also has a referral relationship with several big-name personal finance and accounting firms like CreditKarma, Quickbooks, and Wave Accounting.
Analysts expect On Deck stock to climb from $4.10 to $6 as the company continues to expand its reach across the globe. That's solid 50% growth.
But it's time to get into the really serious growth stocks. All of the following have growth targets above 50%. And this next one could jump as high as 68%...
Best Penny Stocks for 2020, No. 7: Earthstone Energy Inc.
Earthstone Energy Inc. (NYSE: ESTE) runs oil and gas properties in Texas.
In 2018, it became profitable for the first time. That was on the coattails of a 74% revenue increase in 2016. But while those gains are in the past, Earthstone has further to go.
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Analysts give it a growth target of $11.25 for the year. That's a 68% gain from today's share price of $6.60.
In its most recent earnings report, Earthstone reported using only 74% of its predicted capital expenditure. That indicates a stable management that is aware of protecting shareholder funds with careful investment decisions.
But our next penny stock is an energy stock that could gain 70%...
Best Penny Stocks for 2020, No. 6: Southwestern Energy Co.
Southwestern Energy Co. (NYSE: SWN) is a North American oil and natural gas producer with access to 918,000 acres of drilling area.
With claim to that much oil, the stock will push higher as North American drilling ramps up.
Southwestern recorded profits of more than $535 million at the end of 2018. But the company finished 2019 with over $1 billion, which is more than 100% growth.
This company's $1.3 billion in market cap is uniquely high for a penny stock.
This stock currently trades at $2.34 a share, with an analyst growth target of $4, which would represent growth above 70%.
It doesn't quite match our next penny stock, however. Analysts expect an 88% return from this one...
Best Penny Stocks for 2020, No. 5: At Home Group Inc.
At Home Group Inc. (NYSE: HOME) sells home and garden products - furniture, houseware, textiles, rugs, etc.
It had a rough 2019, plunging 70% due to a struggling retail sector. But we look at this as a big discount for investors.
Analysts believe this was a blip and the company will be back on its feet in 2020. In fact, if At Home fixes the problems that led to its 2019 fall, it could reach $10 in the next few months. That would represent an 88% gain for today's investor.
At Home expects profits to increase by 13% in the coming year. That's somewhat modest growth, but it also means the stock shouldn't be written off as a lost cause.
Investors can still take advantage of this stock while it trades for eight times earnings. But it could double in price in 2020...
Best Penny Stocks for 2020, No. 4: Qudian Inc.
Qudian Inc. (NYSE: QD) provides consumer credit services in China.
This is still a very young company, founded in 2015. But it's growing quickly thanks to China's teeming middle class. Middle-class consumers in China are 500 million strong, about double the United States' overall population alone.
That number is expected to grow to 600 million over the next three years. That's driving a strong Chinese retail industry, valued at $6 trillion, which is a 400% increase from 10 years ago. Shoppers in China hit $1 trillion in online consumption in 2018 - again, about twice as much as the United States.
A healthy Chinese retail industry implies a healthy Chinese consumer. And because China has the largest consumer market in the world, Qudian is able to keep a strong consumer base.
Conditions in the Chinese economy could improve even further with positive U.S.-China trade developments. This would bode well for Qudian.
Right now, the stock trades for $4.58 per share. But analysts are targeting $11.77. That's a potential gain of 156% over the next year. But our next penny stock could do even better...
Best Penny Stocks for 2020, No. 3: Antero Resources Corp.
We're back to oil stocks with Antero Resources Corp. (NYSE: AR).
Antero produces and develops oil and natural gas products. It's based in Colorado, and its oil and gas reserves are in the Appalachian Basin.
This company has a lot invested in the United States becoming a leader in fossil fuels. And recent events seem to align with its plans.
The U.S. Energy Information Administration expects American oil production to soar to 1.5 million barrels a day by 2020. And it's expected to outpace Russia and Saudi Arabia.
Antero's primary focus is drilling for oil in the United States, so it's poised to benefit from increased demand for oil and gas worldwide.
The stock goes for $4.59 right now, with a high target of $11.77. That's a soaring jump of 162%.
But it's still not quite the growth of our next penny stock, also an energy stock...
Best Penny Stocks for 2020, No. 2: Callon Petroleum Co.
Callon Petroleum Co. (NYSE: CPE), founded in 1950, is positioned for huge success in 2020.
The company recently merged with another oil giant, Carrizo Oil & Gas Inc. (NASDAQ: CRZO), which gives Callon access to more than double the 75,000 acres of land it had before. Now, with 200,000 drillable acres, profits are getting ready to soar.
Sales have increased about 217% as Callon has met a growing global demand for fossil fuels in the last three years. And it's one of the energy stocks most poised to benefit from increased demand for U.S. oil as tensions mount with Iran and OPEC.
The merger is a big part of why Callon shares are expected to pop 167% from today's price of $4.86. That's right; analysts are targeting $13 for this penny stock.
Carrizo's holdings will be a whole new stream of income for Callon. And that's a big reason why Callon shares are set to pop 219% from $3.76 to $12 in the coming year.
But our best penny stock right now can deliver 181% growth for today's investor. And it's coming from a marijuana industry expected to be worth $66 billion by 2025.
This is one of the biggest, fastest-growing cannabis companies.
That makes it one of the best cannabis stocks to buy in the coming year.
But it's also available for mere pennies, which makes it our top penny stock to buy right now...
The Best Penny Stock for 2020
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The National Institute for Cannabis Investors calls Cresco Labs Inc. (OTCMKTS: CRLBF) the "Starbucks of Weed."
With operations in several legal cannabis states, it's positioned to be one of the big winners of the cannabis legalization movement in 2020.
Cresco currently owns Origin House, California's largest cannabis distributor, and several other dispensaries in the Southwest.
But in 2020, Cresco could expand even further. Legalization is appearing on several state ballots this year. And whether it's medical or recreational, this company wants to get gets a foot in the door.
And Cresco is well positioned to conquer two of the biggest states to vote on marijuana legalization this year: Arizona and Florida.
The company gained 170,000 medical marijuana patients when it acquired Arizona Facilities Supply LLC in 2018. It attempted to grab a big recreational market when it nearly merged with VidaCann, a Floridian dispensary - but this fell through.
That was probably good news for the time being, however. The company saved $120 million from backing out of the merger. And around the same time, it sold properties in the Midwest for $38 million.
This demonstrated prudency on the part of Cresco's management. But it doesn't completely discount the possibility of the company doing business in Florida either.
CEO Charlie Bachtell has said that entering Florida is an "important milestone" for the company to pursue. After all, 64% of Florida voters support legalization. So, when the time comes, Cresco will take advantage.
We are yet to see the peak of marijuana legalization in the United States. Analysts expect Cresco shares to hit $18.48 when this comes.
That's a 181% jump from today's price of $6.38.
Illinois Becomes the 11th State to Legalize Cannabis (Making More People Rich)
Cannabis laws are being reformed en masse: Illinois has not only become the 11th - and second largest - state to legalize marijuana, but the first to do so by way of state legislation.
That means the medical, personal, and economic benefits of "America's Green Gold Rush" are appealing to Republicans and Democrats alike.
One cannabis research executive is hailing Illinois the "Marijuana Mecca of the Midwest," a hallmark of the rising uncapped profit potential ahead.
Once the feds end cannabis prohibition nationwide, all bets will be off - demand will boost share prices through the roof. But you can still get in on the ground floor, just in time for what could be the windfall of the century.
Illinois is already housing some of our top picks in the industry, so a few of our favorite stocks could get yet another boost.