The Best Penny Stock to Buy Today for a Chance at 481% Profit

The CBOE Volatility Index (VIX), or "Fear Index," sits above 40 today. The average last year was 15. Investor "fear" has more than doubled in a matter of months on the coronavirus lockdown.

But it's creating huge profit opportunities for investors of a certain risk appetite. Our top penny stock to buy today has 481% profit potential.

You see, the best penny stocks thrive on volatility. If it suits your risk profile, it can really make you a killing.

The U.S. Securities and Exchange Commission (SEC) defines penny stocks as trading under $5 per share. The low share price means that a small gain can be a huge percentage change in the stock price.

But you don't just want to invest in penny stocks willy-nilly. These are speculative investments. The worst penny stocks can tank just as much as the top penny stocks can soar.

That doesn't necessarily mean there's no science to investing in penny stocks. Of course, the more you know, the better. Penny stock investing can be well worth it if you stick to making informed decisions and limit a small percentage of your portfolio to speculative plays.

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For example, Inovio Pharmaceuticals Inc. (NASDAQ: INO) rocketed 260% only a month after we recommended it on Feb. 3 this year.

Inovio was one of many companies in the running for producing a coronavirus vaccine. This leap was on news that Inovio was one of the first approaching human trials.

To predict their stock was going up would require you to keep your ear to the ground. You'd have to pay attention to the dialogue around coronavirus, press releases from various pharmaceutical companies, and the broader market trends at a very specific moment.

Lucky for some of our readers, we did the research. And the stock more than doubled their money.

We did the same thing several times last year, even with lower volatility. Penny stock prices are generally sensitive to any changes in a company or in the market.

You have to be in the right place at the right time. But you also have to know the right things.

Our top penny stock today could benefit from an oil supply agreement between Russia and Saudi Arabia in the works...

The Top Penny Stock to Buy Right Now

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Russia and OPEC are meeting today to address an oil supply disagreement they've been having since the start of the coronavirus crisis. In short, travel had gone down, oil prices were plummeting, and OPEC wanted to cut supply.

Russia, however, would not restrain its supply, sparking a feud between it and other OPEC nations.

That sent ripples around the world. It tanked oil prices more than 50% - WTI Crude went from above $60 on Jan. 1 to around $25 today. It also significantly lowered the price of our top penny stock today, Marathon Oil Corp. (NYSE: MRO).

Marathon has slipped nearly 70% since Jan. 1, falling from $13.68 to just $4.26.

The stock appears to have found some resistance, however, leveling off around current levels. Marathon isn't your typical penny stock, but the corona crash is giving us the chance to buy some top-flight companies at penny stock prices. They won't stay here for long.

And recent news could send this stock soaring again...

Like many oil companies today, Marathon is cuttings costs to increase its top line. The company has cut $1.1 billion from its initial 2020 budget. It's also 50% below what it spent in 2019, according to a press release.

In March, the company announced cuts to exploration drilling and leasing activity at some of its sites, like Eagle Ford and Bakken. The company has more recently announced "frac holidays" at Eagle Ford and Bakken for the second quarter.

Marathon CEO Lee Tillman says the company keeps a "returns first" mindset and is flexible enough with its many basins that it can afford the slight pullback in drilling.

The cuts are a sign of fiscal responsibility from the front office. They also lay a good foundation for when oil prices bounce back on a Russia-OPEC agreement and the American economy opening over the next year.

That's why analysts give this penny stock an average 12-month price target of $8.31 for the year. That's 93% profit for today's investor. The high analyst target, however, is $25, which is a potential 481%.

Action to Take: Volatility is still driving some big market swings. And that's going to power one of our best penny stocks to buy today for 481% profit potential. Keep an eye on Marathon Oil Corp. (NSYSE: MRO) as Russia resolves its dispute with OPEC.

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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.

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