The markets are experiencing wild swings every day. While a 20% jump in markets this week technically ended the shortest bear market ever, don't think for a second that we're past the worst of this crisis.
We will see significant volatility in the coming weeks as concerns about credit hammer the banking sector and investors fret about the nuclear bomb that is about to hit second-quarter GDP.
With that in mind, there are still a number of stocks out there that are very intriguing as "Buy and Hold" candidates. Penny stocks – which typically trade for $7 per share or lower – offer high-upside opportunities given the current conditions in the market.
While they could dip in the coming months, now is the time to consider using a variety of strategies, like buying in portions. You can divide your capital into three piles. Use the first to purchase a stake in the stocks today. Should they pull back 15%, buy a second portion, and should they fall another 30%, purchase a third.
Get Your Buy List Ready: COVID-19 has crushed markets, but stocks will bounce higher. This is a once-in-a-lifetime chance to get into great companies at historically low prices, so put these stocks on your buy list now…
Here are three of the top penny stocks to watch for the months ahead…
Penny Stocks to Watch, No. 3
There may be no better "indoor" stock during coronavirus than one that sells apps and video games on mobile devices. Perhaps that's why Zynga Inc.'s (NASDAQ: ZNGA) stock has largely held up over the last few weeks. The $6.4 billion firm is the creator of FarmVille, its best-known game.
Right now, Zynga stock has been held back by broader macroeconomic news. It recently experienced an extremely strong fourth quarter, one that provided a huge source of tailwinds for the firm. Wedbush analyst Michael Pachter called the company's performance in Q4 "near perfect" as he expressed his expectation that the stock would shoot higher.
Given that the company operates in a perfect industry for the current "social distancing" trend, Zynga looks like it can repeat its 56% surge from 2019. Shares currently trade at $6.73.
We project that the stock can conservatively hit $9.50 by the end of the year. That price target would represent a price upside of 40%.