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We're approaching two months of lockdown. And we don't know how much longer this will go, but it seems like fears only increase with time.
Our best penny stock to buy today is one way to beat the fear.
The CBOE Volatility Index (VIX) daily average is at 33, more than double what it was last year at 15. But penny stocks tend to do well in these environments. Our top penny stock today has 98% upside potential, for a number of reasons…
Broader fears have tanked this stock's price. But they have not diminished its underlying value.
This stock is a leader in the electric vehicle industry. But it's not a dicey, expensive play like Tesla Inc. (NASDAQ: TSLA). There's a better play with a company taking all the right steps to dominate the shifting auto industry tide.
That said, it's not your traditional "penny stock."
The U.S. Securities and Exchange Commission defines penny stocks as stocks trading under $5. Today's penny stock is a couple dollars more. But since the bear market has made it so cheap, we'd be stupid not to tell you about it.
Everyone's been buying the dip lately, but there still hasn't been a screaming "buy" signal quite like this one in 2020…
Why This Is the Best Penny Stock Right Now
It's widely believed that electric vehicles (EVs) may overtake gas-powered vehicles altogether. The number of EVs on the road went from under 100,000 in 2013 to over 1 million in 2018. There was 81% growth from 2017 to 2018, and that's just going to keep accelerating.
Our top penny stock today has been one of the first to respond to this growing trend, first unleashing hybrids, then a full line of electric vehicles.
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As you'd expect, the ongoing oil crisis and the coronavirus pandemic have hurt sales for this company. Oil is cheap, and people are generally not traveling as much as normal. But the stock is now so cheap it's impossible to ignore.
The electric vehicle industry could see 393% growth by 2027. And this stock could be controlling a significant portion of that.
Again, you could go for Tesla for $800 and questionable upside. Or you can go with a long-trusted brand trading under $10.
Because this stock has reached a penny stock price level, even a slight broad market shift in the positive direction could translate to a huge percentage gain for today's investor. That's one of the great benefits of being a penny stock in high-volatility times.
The average analyst predicts 93% upside over the next year, while more optimistic analysts are giving it 98% upside potential for the year. Our propriety Money Morning Stock VQScore™ confirms this. This penny stock got a perfect score of 4.9, meaning its financials are solid and earnings are accelerating to breakout levels while the price simmers.
Now, here's our top penny stock to buy today for double your money…
The Best Penny Stock for Your Money in 2020
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.