Stocks are kicking into overdrive this week as the economy starts to reopen, with the Dow surging 3% higher in the last two days. And one of the best ways to juice your returns from this latest rally is with penny stocks.
To help you find those winning returns, we're bringing you one of the best penny stocks to buy today that's cashing in on the economic reopening.
In fact, this company will be more essential than ever as employers shift to remote work plans. That gives the stock a double catalyst since you can get a pop from the reopening and get a long-term rise as earnings grow thanks to work from home trends.
You see, because of this company's low share price, a move of just $3 in the stock's share price could net you 120% gains in a matter of days.
Compare that to the price changes we've seen in some other stocks that have popped thanks to the changes to the economy. Chewy Inc. (NYSE: CHWY) jumped by $15 a share since just March. Once traders set their eyes on a stock, especially a stock priced under $5 a share, the upside can be enormous.
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That's especially true of today's best penny stock because it trades on a major exchange. One of the problems penny stock traders run into is buying penny stocks on over the counter exchanges or the Pink Sheets and finding they don't have the trading volume to make big moves. If fewer traders know where to find those penny stocks or aren't willing to trade over the counter, then your potential gains are slashed.
By targeting penny stocks on major exchanges, volume and liquidity won't be an issue.
Plus, our top penny stock has another big advantage over those other penny stocks: It's profitable...
The Best Penny Stock to Buy Now
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Office Depot Inc. (NASDAQ: ODP) is already a household name, but its stock is flying under the radar for two reasons.
First, it's a retail outlet that's been hammered by lockdowns and social distancing restrictions. Fewer people were going out to shop, and retail stores like this one had to operate at a limited capacity.
That's changing in a hurry as states are ending their restrictions and businesses are reopening.
With more people working from home and out of their offices, they'll need to beef up their home setups. That includes everything from new computers and printers to office chairs and web cams. Office Depot couldn't ask for a better catalyst for their business.
Two, Office Depot has lost status in recent years as consumers have turned to e-commerce giants like Amazon.com Inc. (NASDAQ: AMZN) for their retail needs.
Office Depot has responded to the challenge by branching out into IT and support services for businesses. In 2017, it bought CompuCom, an IT solutions firm. That's helping the company become a one-stop shop for business services and products.
And that will be especially important in the new economy as companies begin allowing employees to work from home. Small- and medium-sized businesses are less likely to have in-house IT teams and will need to rely on third-party firms more frequently as their technological demands increase. With Office Depot already having national reach and brand recognition, it is in prime position to absorb this new business.
Analysts are giving the stock a high price target of $4 a share. But we think that's simply too conservative considering the catalysts behind the stock. We think it has the potential to threaten its 2019 highs at $3.69 a share as the economy reopens and Americans start stocking up their home offices. A 120% upside is a nice payday.
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