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Every investor's dream is to find the next "big thing." Think Amazon.com Inc. (NASDAQ: AMZN) in the 1990s. Apple Inc. (NASDAQ: AAPL) before it unveiled the iPhone. Even Tesla Inc. (NASDAQ: TSLA) has rocketed 86% higher in 2020 alone.
But the big tech stocks aren't the only big winners.
If you're looking for that next breakout stock, you might want to consider buying a few penny stocks. They trade for under $5, and they can have an immense upside on just a few dollars' change in share price.
To find the best penny stocks to own, I typically incorporate several different strategies. I always want to make sure these companies are viable and provide a favorable risk-reward profile. I'll look at the company's balance sheet to examine cash flow and debt. Then I'll look for positive signals like insider buying among executives.
My top penny stocks to own this week pass one or more of these tests. The best one is even positioned for a 185% breakout in the next year.
Let's get started…
Best Penny Stock to Own This Week, No. 3: WisdomTree Investments
WisdomTree Investments Inc. (NYSE: WETF) is a popular provider of exchange-traded products. You've probably seen their exchange-traded funds (ETFs), exchange-traded notes, and exchange-traded commodities. The firm has about $60 billion under management, a figure that is small compared to its competitors. The firm competes with some of the biggest names in finance, including BlackRock Inc. (NYSE: BLK), Vanguard, and Invesco Ltd. (NYSE: IVZ).
Launched in 2006, it has grown to the seventh-largest provider of ETFs in the United States.
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WisdomTree currently trades around $5.15 thanks to a recent uptick from 52-week lows. The company is a prime takeover target for a larger ETF or asset manager. We see an upside for WETF at $6.50 by the end of the year. That would represent a potential upside of 26% from current prices.
This next penny stock, however, could more than double in the next 12 months – 136% growth…
Best Penny Stock to Own This Week, No. 2: Cerecor Inc.
Cerecor Inc. (NASDAQ: CERC) is a biopharmaceutical company that specializes in treatments for rare and orphan diseases and neurological conditions.
The stock has pulled back in recent months thanks to its purchase of Aevi Genomic Medicine. However, this deal is poised to be a major catalyst for Cerecor in the future. The combination of the two companies will address pediatric orphan diseases.
The company has a fantastic pipeline of new drugs, led by three therapies for inborn errors of metabolism. Specialization in these diseases makes Cerecor a potential takeover target by a larger pharmaceutical company in the future.
And its stakeholders have been very bullish on its future. Last week, one of the company's directors, Armistice, purchased $5 million in CERC stock, a sign that it expects a big windfall in the future. With shares trading at $3.80 per share, we agree. Our price target for CERC stock is $9 over the next 12 months.
That figure represents an upside of 136% by this time next year. But you won't get more upside than from our very best penny stock to buy today.
This next penny stock could deliver 185% for today's investor.
The Best Penny Stock to Own This Week
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.