Start the conversation
There's a lot happening right now. On top of a worldwide pandemic, you have civil unrest and global trade disputes adding to uncertainty around the globe. The CBOE Volatility Index (VIX) could threaten to rise back above 30 after its retreat following the COVID-19 scare.
But these things don't have to stop you from making money. In fact, our best penny stock to buy today could still earn you 111% on your investment.
You see, the best penny stocks actually do well in volatile times. Their low share price - under $5, according to the SEC - makes it possible to gain huge percentages over a short period. For instance, if you buy a penny stock at $1 and it climbs to $5, that's 500%. Now, imagine putting $100 or $1,000 into one of the top penny stocks trading on the market.
Of course, even putting $10 or $20 in could make for a nice, quick payday.
That's because, whether the markets go down or up, there will likely still be people making and selling things. Sometimes, it just gets a little harder to peer through the fog and find the winners.
At Money Morning, we do that for you every week. And this week, we're eyeing a sector that's on pace to reach $216 billion in value by 2025 from $90 billion in 2018. To be clear, that's a 138% growth projection.
This sector also has a compound annual growth rate (CAGR) of 13.25%. For perspective, the average S&P 500 CAGR is 7%. So it's nearly twice the average yearly growth.
And everyone needs this company's product. In an apocalyptic situation, it might be the last thing to go...
How to Find the Top Penny Stocks
The key to finding penny stocks with extreme upside is to hone in on industries with explosive growth. As these industries grow, they help lift stocks connected to them.
And today's penny stock is plugged right into an essential sector.
Even if we were confined to our homes for the rest of our lives, this stock would stay afloat. In fact, it's going to keep climbing over the next many years.
We're talking about the website hosting industry.
Just think about how many websites exist. A few million? A few hundred million? No - 1.5 billion. And that number is only growing with time.
Nearly every business you can think of has a website. There are websites dedicated to individual people, activities, and places. Some websites might even be dedicated to a single word. As long as there are ideas, there are websites.
And that means a forever-compounding pool of real estate for this penny stock. But here's why our top penny stock to buy could pop over the next few months...
The Best Penny Stock to Buy Now
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.