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...
Best Penny Stocks to Own, No. 1
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Finally, Lineage Cell Therapeutics Inc. (NYSEAMERICAN: LCTX) stands as one of the rare biotech stocks with upside as high as 350% in the year ahead.
Lineage is a clinical biotech firm creating a treatment for dry age-related macular degeneration (AMD). This is the leading cause of irreversible vision damage and loss in the United States. It also specializes in the development of terminally differentiated human cells. These cells can replace or support cells that are damaged or diseased. They can also help the human body defend itself against cancer.
Not a lot of analysts pay attention to LCTX, which allows it to slide under the radar for now. The firm's focus on AMD could be very lucrative. Its OpRegen treatment could easily establish itself as the leading treatment for the condition. Shares of LCTX trade at $1.07. But a breakout series of trials and increased success could push this stock as high as $5 per share in the next 12 months.
That price target would represent a return of 367% from Thursday's closing price.
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.