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Uncertainty might be a good thing sometimes. Today, we're going to show you a way to make it work in your favor.
Our best penny stock just got a perfect "Buy Now" rating from out model. It's poised for nearly 100% growth according to analysts. And it's all because the market is so unpredictable right now.
The CBOE Volatility Index has a daily average above 30. Compare that to last year's daily average of 15.
Of course, you could take that as a message to sit on the sidelines until things calm down. Or you could look at this as an opportunity to profit on one of the top penny stocks today.
You see, volatility is fuel for the top penny stocks. And if you know how to identify a top penny stock, you can make the volatility work in your favor.
Penny stocks trade under $5, according to the U.S. Securities and Exchange Commission. Because of their low share price, a small change in price can translate to a huge percentage move.
Of course, that means bad penny stocks can lose just as much as the good ones gain. But with us in your corner, you have more opportunity to separate the best penny stocks from the worst.
Now, even with today's wild market swings, this week's top penny stock has a perfect "buy" score...
Why This Is the Top Penny Stock Right Now
Money-doubling gains on penny stocks are always out there.
Once you assess your risk tolerance and decide penny stock investing is for you, it's just a matter of knowing where to look.
Free Guide: Today's volatile market is perfect for making money with options, and you can learn from a pro with Tom Gentile's Options 101: The Easiest Options Guide You'll Ever Read. Click here to get it.
How is it possible to sift through thousands of stocks and choose the one that's going to break out?
For that, we have the Money Morning Stock VQScore™ system. It uses a proprietary algorithm to measure the earnings growth of thousands of stocks. Then it gives them a score from 1 to 4.9, a 4.9 being a perfect score.
Our top penny stock today has a 4.9.
It's a business technology firm with solid financials to carry it through the coronavirus pandemic and beyond. Here's today's penny stock that could double your money...
The Best Penny Stock to Buy Today
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Micro Focus International Plc. (NYSE: MFGP) is an England-based software consultancy founded in 1976.
It's spent the last few decades acquiring other software companies to support its end-to-end software services. The company has grown to $1.5 billion market cap in that time.
This is another one of those stocks that has been hit hard by the coronavirus crash, losing 67% of its value year to date. But this is a considerable bargain given the company's financials.
In 2019, the company increased net income by 102%, to $1.4 billion from $726 million the year before. Free cash flow also more than doubled, from $241 million to $576 million - 138%, to be exact.
Micro Focus's total cash on hand is $355 million, up significantly from $150 million in 2017. That, with its $1.4 billion in assets, will get it through the downturn this year.
And the perfect 4.9 VQScore confirms the likelihood of a breakout in just a few months.
You can pick up shares of Micro Focus for just $4.82 today. Analysts expect it to hit $9.30 later in the year.
Action to Take: Penny stocks can deliver tremendous profit in a volatile market. And every once in a while, one will poke its head out with a clear "buy" signal. The Money Morning Stock VQScore just flagged Micro Focus International Plc. (NYSE: MFGP) as a 92% gainer. Pick it up for $4.82 while you still can. Analysts say it could hit $9.30 by the end of the year.
Why Startups Can Have an Edge During a Recession
Uber, Airbnb, Slack, Pinterest, and Venmo have something big in common - something other than their big names.
These startups were founded during the last recession.
And now, some of the most iconic companies of our time could launch into Fortune 500s during days like 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.