The 3 Top Penny Stocks to Watch This Week

Big tech companies are trading at all-time highs. Amazon.com Inc. (NASDAQ: AMZN) is on its way past the $2,000 mark, and Apple Inc. (AAPL) is currently at its highest-ever price at $316.43.

Apple has soared more than 140% in the last five years. While that's exciting, you probably missed its biggest gains.

Our top penny stocks to watch, on the other hand, can reward small investments with high percentage gains. In fact, the best penny stock on this list could potentially soar 218% over the next year.

While penny stocks trade under $5 a share, great penny stocks have unique value propositions, improving technical metrics, or strong fundamentals that could easily drive the stock 50% or higher in the year ahead.

We'll show you our 218% gainer in a moment. First, analysts expect this one to return a solid 43%...

Penny Stock to Buy, No. 3: U.S. Auto Parts Network

If you're looking for a stock that is simply undervalued and beaten down, shares of U.S. Auto Parts Network Inc. (NYSE: PRTS) have plunged over the last three years from about $4 per share to the current $2.79. Though it has recovered a little over the last year, the firm is struggling due to the increasing competition in online auto parts sales.

The firm operates sites dedicated to the automotive aftermarket parts and repair information sector. It sells engine parts, performance parts, collision parts, and a range of other products. Right now, the stock is incredibly cheap. It trades at just a 0.34 price-to-sales ratio. It may also present itself as a possible takeover target for a larger competitor like AutoZone Inc. (NYSE: AZO) at some point. In addition, the stock has experienced strong insider buying over the last four months.

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U.S. Auto Parts Network currently trades at roughly $2.79 per share. But we see upside of about $4 per share at some point in 2020. That figure represents potential upside of 43%.

Now, after this potential 46% gainer, we'll show you our penny stock with 218% growth potential.

Penny Stock to Buy, No. 2: Veru

Veru Inc. (NASDAQ: VERU) is an oncology and urology biotech company that produces treatments for prostate cancer and other supportive care. The company just announced that one of its experimental drugs showed positive traction in reducing hot flashes in patients with advanced prostate cancer. Investors have pushed shares up more than 100% since November.

But that's not the end of its run.

Wall Street has grown incredibly bullish on the company given that it has a number of "shots on goal" in the oncology industry. The company has added a new biologic to its pipeline that has the potential to become a leader in a $2.6 billion ADT market. Though it might take until 2023 for the company to generate a lot of revenue, increasing optimism could easily push this stock up to $6 over the next year.

That figure represents upside of 46% from Thursday's closing price. Now, here's a penny stock that could more than triple your investment...

The Top Penny Stock to Buy

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Investors have been seeking ways to get into the cannabis and CBD trade since states legalized medicinal marijuana and recreational marijuana across the country. However, the investment craze has sent marijuana stocks to new heights and priced out a lot of investors who arrived late to the trend.

But there still remains a way to get in on the growing strength of the CBD industry. CbdMD Inc. (NYSE: YCBD) is a national consumer cannabidiol (CBD) brand that is the first pure-play company trading on the New York Stock Exchange. The company has a full line of CBD products including CBD tinctures, CBD gummies, CBD topicals, CBD bath bombs, CBD vape oils, and CBD pet products.

The CBD industry is on the verge of a massive breakout in the years ahead. Cowen & Co. projects that the industry will grow from $1 billion in 2018 to $25 billion by 2025. CbdMD stands to become a major player, with 60% of its sales coming from online commerce. It also has its products in roughly 30,000 retail locations around the United States.

Shares of cbdMD trade at $1.11 per share. And just this week, the firm saw a significant amount of insider buying by its own executives. While this might be a speculative play, we see potential upside for this stock at $3.50. That price would represent a 218% gain for the stock over the next 12 to 18 months.

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About the Author

Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.

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