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Amazon.com Inc. (NASDAQ: AMZN) is now worth $1 trillion after it crushed its earnings report Thursday night. Once again, it's showcasing the role of e-commerce in the American economy.
Shares topped $2,000 this morning. And that's great if you've been buying Amazon stock for a while. But it might be out of reach for many investors.
These investors should consider penny stocks.
Just a small investment in stocks trading under $5 each can turn into a massive windfall over the next 12 months.
Our best penny stock to buy right now has growth potential of 367%. It's the kind of windfall that might even enable you to buy Amazon later.
But this first penny stock promises decent growth as well, a potential 48% gainer…
Best Penny Stock to Own, No. 3: Nio Inc.
The coronavirus has pummeled Chinese stocks in recent days. But one success story has been holding up – the electric vehicle industry. NIO is a Chinese electric-vehicle market that has recently secured $1 billion in new capital from Guangzhou Automobile Group.
This investment is a significant development for Nio Inc. (NYSE: NIO).
Chinese automaker GAC has joint ventures with other major manufacturers like Fiat Chrysler Automobiles NV (NYSE: FCAU) and Honda Motor Co. Ltd. (NYSE: HMC). This capital raise could help alleviate ongoing concerns about NIO's cash on hand. Shares have pulled back considerably this week, presenting an opportunity for speculators to take a small position and bet for a recovery in the Chinese markets.
NIO shares currently trade near $4.03 per share. However, NIO stock has a potential upside of about $6 per share in 2020. If it bolsters its cash position, continues to slash quarterly losses, and meets its delivery expectations, this is likely to happen. And that price target represents a potential upside of 48% from its current price.
That's a nice profit for today's investor. But this next one could double your money…
Best Penny Stock to Own, No. 2: UR-Energy
It's been a challenging year for uranium companies. Last summer, the U.S. government announced it wouldn't offer incentives to boost domestic uranium production. That fueled a sell-off in uranium stocks, with the sector losing more than 30% of its value.
UR-Energy Inc. (NYSEAMERICAN: URG) is a junior mining company that operates the Lost Creek uranium facility in Wyoming. This location processes roughly 2 million pounds each year. Shares are now sitting at just $0.48, representing a significant opportunity for speculators to consider a bounce-back for the industry.
Uranium prices have slumped in the wake of the Fukushima disaster. As nations aim to address climate change, the global economy can't afford to cut off oil and gas production. Nuclear must be part of the all-of-the-above approach. Nations like Russia are already increasing production of reactors, and demand is aligning with global supply. Some analysts now expect a supply shortage.
URG represents an exciting contrarian play for the 2020 election. The Trump administration has expressed the need for more nuclear power. URG would benefit from both political and macroeconomic tailwinds in the year ahead.
The stock could reach $1 this year should speculation accelerate. That forecast represents an upside of about 100% from current levels.
But if you want to more than quadruple your money, our top penny stock right now is your best bet…
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