The Best Penny Stock to Buy for a 108% Gain This Year

The federal government estimates it will spend over $51 billion on information technology (IT) for its civilian agencies this year.

That's only a 1.9% increase from 2019's $50 billion. But multiple analysts agree that it could spell 108% growth for our best penny stock to buy today.

It's not so much an increase in federal IT spending that's driving these profits, though. It's what kind of IT they're spending on.

Most of us are fully aware of a sweeping evolution from stationary tech to mobile, cloud-based systems. It's been unfolding right in front of us for a few years now.

But this year, all the hype around 5G networks is materializing, wearables are becoming more advanced, and the general public is starting to catch onto what a "blockchain" is.

Last year, Gartner predicted 17% growth in cloud services in 2020. The company's vice president, Sig Nag, even came out saying that "cloud adoption is mainstream" at this point.

5G wireless network revenue will also nearly double from $2.2 billion in 2019 to $4.2 billion in 2020.

These trends point to a big year for all things telecom. And that makes it a big year for our top penny stock today, one that could double your money...

Why You Don't Know About This Penny Stock

As you well know, the federal government tends to lag behind these trends. It will usually adopt novel tech at a slower pace than the private sector. And the rising speed of tech development hasn't done it any favors.

So this year, the federal government is going to need to look closer than ever at mobile security and identity management through the cloud. And it appears to be doing just that.

Enterprise software consultant Deltek projects the government's cloud computing expenditure will increase by around $4 billion in the next five years. And that's also going to boost our top penny stock right now.

Also moving this penny stock, cloud adoption is still on pace to grow an average of 17.1% per year through 2021, according to Gartner.

When the market catches wind of an oncoming trend like this, the penny stocks in that industry will make the biggest moves first. Due to their low share price - under $5, according to the U.S. Securities and Exchange Commission - the best penny stocks can turn in gains of 100% or even 1,000%.

Even a broader market trend can bump a good penny stock. For example, Senmiao Technology Ltd. (NASDAQ: AIHS) rocketed 268% last November as the Dow Jones climbed to a record high that day.

This penny stock, however, will soar on a more specific trend. And it's one that won't go out of style anytime soon.

In fact, it will probably be closer to the core of federal IT spending as time goes on.

So this could also be a penny stock to hold for the future, as well as a 108% growth stock in the near term...

The Best Penny Stock to Buy This Week

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Based in Fairfax, Va., WidePoint Corp. (NYSE: WYY) specializes in cloud-based trusted mobility management (TM2) solutions.

It's been a partner to the U.S. government as well as Fortune 100 enterprises around the world since 1999.

WidePoint's services started out as primarily offering secure authentication credentials across U.S. government networks. Then in 2006, those services expanded to identity management-including, but not limited to, providing names and passwords to users across a network.

This has become more important with the rise of mobile devices. As phones have turned more into computers, an organization is no longer bound to a single space between four walls. Users can collaborate around the world from their pockets.

That's where TM2 solutions comes in. It's an all-in-one framework for managing an organization in a mobile environment.

This covers identity management on top of a list of other things like business analytics, inventory management, mobile policy management, customer support, and more. And all of that needs to be protected by strong cybersecurity measures.

WidePoint provides all or this. Clearly, this company has adjusted its services to meet a growing number of enterprise needs over time.

It was awarded a total of $14.7 million in contracts in the third quarter of last year.

This company is nearing profitability. WidePoint increased net income by 857% from December 2018 to now, from -$1.4 million to -$152,000.

And the front office sounds cool-headed enough to take WYY there. The company announced in October 2019 that it had a cash flow stable enough for a $2.5 million buyback program to reward shareholders.

In addition, WidePoint recently raised its Q4 earnings projection from $90 million to $95 million.

In the March 19 report, it also expects earnings before interest, tax, depreciation, and amortization (EBITDA) to increase 94% from 2018.

And analysts expect earnings per share to go up 100%. That's also reflected in the 108% growth target of $1 from today's $0.48.

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