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If anything can be called "good" news while coronavirus fear tanks the market, current stock lows could double or triple your money a few months down the road.
Our top penny stock to buy today is one of those, with 227% profit potential this year.
The CBOE Volatility Index – or "Fear Index" – is above 70. It hasn't gone higher than 30 since 2011.
Record-high volatility means stocks could soar or dive day to day. The Dow Jones Industrial Average might lose 2,000 points one day (like on Wednesday, March 11), and then it might correct by adding 1,000 the next (like on Thursday, March 12).
Penny stocks are especially sensitive to these shifts because they trade for less than $5 a share. A move of a couple bucks could be 100% or more of the stock's price.
Take Action: Market volatility has everyone on edge, but we have three steps you can take to protect your money and even set yourself up to profit. Click here…
But penny stocks are considered speculative investments.
If you're considering penny stock investing, you might fall into the "bullish" camp of investors. There is opportunity for huge gains here. But as the reward is multiplied, so is the risk in these volatile moments.
Before penny stock investing, do a quick "gut check" and assess your risk tolerance. If you decide you want to proceed, we're onto one of the best penny stocks to buy right now.
Why This Penny Stock Is Undervalued
One of the hardest-hit industries in the last few weeks has been the energy industry. And limited travel is only part of the story.
As a consequence of coronavirus travel bans, OPEC – the cartel of petroleum exporters led by Saudi Arabia – took measures to limit supply to keep oil prices afloat.
Unfortunately, they couldn't see eye to eye with fellow OPEC member Russia.
Supply wasn't cut according to plan. Instead, Russia and Saudi Arabia entered a price war, driving oil stocks even further down than before.
This was bad news for our top penny stock today. It's lost 66% of its price since the start of the year.
But bullish investors might see this as enormous upside in a few months. More will become known about the virus over the next few weeks. As its spread is contained, the panic may subside, and travel may recover.
That's what keeps analysts believing in a 227% price target for this penny stock on the year…
The Top Penny Stock to Buy Right Now
About the Author
Mike is a graduate of 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.