The S&P 500 is down more than 14% in 2020. There's still no end in sight to the viral outbreak. What's the next move?
Regardless of what the market does from here, the best penny stock to buy today is a 366% opportunity.
Sure, the current dip is a chance at some of the best buy-and-hold socks at a discount. But low stock prices are encouraging other investors to pursue even greater profit potential over a shorter amount of time.
That is, a penny stock can double your money in just a few months or weeks.
Because penny stocks trade for around $5 or less, they are incredibly sensitive to market movements. And volatility is high right now. The CBOE Volatility Index (VIX) is above 40, with a daily average around 30, more than double what it was last year.
When volatility is high like today, penny stocks will see dramatic percentage changes in a matter of days. It could be as simple as a shock to the broader market averages, which we've seen plenty since the coronavirus crash. Or it could be industry-specific events that send the penny stock price soaring.
Today's top penny stock is rising on the shoulders of an explosive industry: cannabis.
The cannabis industry is expected to rise to more than $73 billion by 2027, according to Grand View Research. It was measured at just $10.4 billion in 2018. That's a cool 630% growth for the cannabis market.
Some investors have shied away from the cannabis market now that the market has dropped. The ETFMG Alternative Harvest ETF (NYSEArca: MJ) is down 54% since January 2019.
But many don't realize this is perfectly normal for such a new industry. Along with the legal question, legal cannabis introduces an entirely new set of products, and new companies are still learning how to sell them.
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...
People made mistakes. Cannabis companies lost money. It's totally normal for a growing industry.
In fact, 2019 was a year to weed out the losers in the cannabis industry. And 2020 is still the year this industry is set to take off.
There is still tremendous legalization potential, come election season in November. We recently talked about states like Oklahoma that are beginning to see the tax value of legalizing pot.
It even seems the state cost of coronavirus response has pushed legislators further in that direction.
Today, we have a penny stock that's beat down, but certainly not out. Here's a cannabis penny stock poised for 366% growth when the industry gets rolling.
This might not be your typical penny stock, but a wave of cannabis sell-offs last year, coupled with the coronavirus crash, puts it at an incredible discount...
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Tilray Inc. (NASDAQ: TLRY) used to trade near $150 at its peak in 2018.
As one of the biggest names in the industry, it was swept into a wave of general pessimism over cannabis through 2019.
Hype drove the price up to its peak after the company became the first to hold an IPO on the Nasdaq. And hype has driven it back down since then, now at all-time lows.
The coronavirus pandemic, of course, dug a deeper hole. It trades for $6.19 right now.
The fact remains that Tilray is one of the most formidable cannabis companies you can buy.
You can't stress enough the discount you're getting with Tilray at the moment, down near 90% over the last year.
The Canada-based company operates in 12 countries. Its name has stuck around since the major U.S. IPO - don't underestimate the power of first-mover advantage.
Tilray is also engaged in various partnerships in a number of fields. The company has a joint venture with ABInBev to make cannabis beverages. It acquired Manitoba Harvest last year as well, giving it a path to cannabis food products.
It also acquired a 155,000-square-foot greenhouse in Ontario last year.
Before the COVID-19 crisis ramped up, Tilray expected to grow 75% to over $300 million in revenue. A broader market sell-off has brought the stock down to its current level.
But again, this is all hype that does not account for Tilray's staying power compared to other marijuana companies. It also doesn't account for the fact that marijuana is essential in the pandemic, or that the pandemic has caused lawmakers to further consider the revenue potential of legalization.
No matter what happens, Tilray is one to hold. And you can buy it at a penny-stock price today.
The average price target for this year is $10.09, representing 66% growth. But more optimistic analysts give it a target of $28. That's 366% profit potential.
Action to Take: The pandemic has created a run on valuable stocks that have been beaten down by broader market forces. Many of these are in the cannabis industry, which could grow to over $70 billion by 2027. Tilray Inc. (NASDAQ: TLRY) will be riding that tide in 2020, with 366% growth potential.
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