Start the conversation
Comment on This Story
Or to contact Money Morning Customer Service, click here.
The COVID-19 coronavirus has brought volatility back to stocks. While it might not seem like it, that's a very good thing for penny stocks.
Inovio Pharmaceuticals Inc. (NASDAQ: INO) has more than doubled since we recommended it last month - a 139% gain for our readers. The company just announced human trials for a coronavirus vaccine.
Believe it or not, that's not the only penny stock making moves today.
The most obvious place to look for penny stocks right now is pharmaceuticals. It would make sense to focus on companies developing coronavirus vaccines.
But there are even better ways to use penny stocks to profit from the pandemic-induced volatility.
If you missed the 139% pop from Inovio, the best penny stock today can still double your money. And the most surprising thing is it's not a pharmaceutical company.
Coronavirus fears have tanked the stock market up to 3,000 points in the last month. While all that was happening, our top penny stock gained 53%.
You see, penny stocks trade under $5 a share. That allows them to make big swings in a volatile market. The Volatility Index (VIX) more than doubled in February, from 16.05 to 33.42. And that sent our penny stock today up 53%.
But why did it rise and not fall? It's tied to one of the most coronavirus-proof trends today: artificial intelligence.
Volatility is going to remain high over the next few months. But you can use that to your advantage with this penny stock.
We're going to show you that stock in a moment. But first, here's why certain artificial intelligence stocks could be a coronavirus safe haven.
Why This Is the Best Penny Stock Today
AI is not just on its way to being a huge market. It's alive and well right now, and it's being used to respond to COVID-19.
In fact, the Centers for Disease Control and the World Health Organization have adopted analytics and big data to track the virus around the world.
Predictive analytics can use huge amounts of voice and text data to give researchers a snapshot of areas affected by the virus. AI can package this data in a way that informs authorities in their decisions.
One example is the Johns Hopkins world map of COVID-19's spread. Geographic information systems like this are being developed to mine data from social media and forums where COVID-19 is most talked about. This can help authorities get a grasp of how different areas have been affected by the response.
Even more shocking, BlueDot, a private Canadian AI firm, actually predicted the coronavirus outbreak weeks before Centers for Disease Control by using animal disease and airline data.
Right now, the CDC is limited to public health records. But this is just one of an infinite number of things AI can do to improve conditions under circumstances like the spread of COVID-19.
For this to happen, AI needs to be more widely adopted by government agencies.
The good news is that it's getting there. And that's why this penny stock is on its way to a 107% gain...
The Best Penny Stock to Buy Right Now
About the Author
Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.
Thank you
Very interesting
Very interesting!