No one knows how long the coronavirus pandemic will last. That's sent markets into a tailspin. The Dow Jones Industrial Average hit a three-year low of 18,500 in the 2020 market crash, down from all-time highs above 29,000 to start the year.
It's been a wild ride. But we do know one thing: Our top penny stock to buy today has 549% profit potential.
The pandemic will end at some point. While it's slowed the economy, it's not going to permanently halt major growth industries that have been building for years.
The legal cannabis industry is set to grow 470% between now and 2027, from $10 billion to $57 billion. Within that, you have the incredibly robust CBD industry growing to $22 billion by 2022 – that's from just $500 million in 2018.
And one of the best ways to cash in on this upside is with penny stocks.
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You see, penny stocks trade for under $5 a share, which means they can make huge percentage leaps on broad market moves. When the CBD industry skyrockets, this penny stock will launch even further.
Here's why CBD penny stocks make a lot of sense right now – and how this one offers upside potential of 500%…
CBD Penny Stocks Are Going to Pop
Cannabis had some setbacks in the last year, but another breakout is brewing.
The ETFMG Alternative Harvest ETF (NYSEArca: MJ) has lost more than 70% since 2019. Don't let that stop you. Last year was typical for an industry as young as marijuana. The cannabis industry has still been shuffling winners and losers as the companies discover what drives demand and what doesn't.
CBD might be a cannabis industry leader in terms of solidifying future demand. It more than doubled revenue from 2016 to 2018.
The compound is getting attention for its healing properties, both for body aches and depressive symptoms. Professional athletes have even advocated it for recovery purposes: Golfer Bubba Watson, ex-Pro Bowl Tight End Rob Gronkowski, and ex-MLB Pitcher David Wells, to name a few.
Now, one of the only things standing in the way of CBD is the U.S. Food and Drug Administration (FDA).
Though CBD has shown effectiveness against a variety of ailments, the FDA is still shy about officially approving it. It's even filed class actions against some CBD companies like Charlotte's Web Holdings Inc. (OTCMKTS: CWBHF) and CV Sciences Inc. (OTCMKTS: CVSI) for "illegal CBD products" because it is not an "approved dietary ingredient in foods and supplements."
The FDA maintains that it was "first investigated as a drug," which is why the organization is taking more time to examine CBD at the start of 2020.
This wave of scrutiny, of course, was inevitable for the CBD industry. Some will face it; others might slip by.
But in time, CBD will get approved. Why?
The dam is already broken. CBD food and supplements are in stores everywhere. People love them. They are even essential medical products during the coronavirus lockdown.
In fact, this CBD penny stock is already a household name. And it just released an eye-popping Q1 earnings report…
The Best Penny Stock to Buy Today
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.