On Jan. 30, we recommended buying shares of Workhorse Group Inc. (NASDAQ: WKHS) for $2.76. Readers who listened made 258% on that trade last week, when the stock rocketed to $9.90.
We've been recommending penny stock trades like this all year. And we have another top penny stock to buy now with money-doubling potential. Get ready...
You see, penny stocks trade for $5 or less, according to the U.S. Securities and Exchange Commission. That enables the best penny stocks to often make big percentage jumps on a small piece of good news.
In the case of Workhorse, the good news is paired with a promising new industry trend.
Let's talk about why this stock got such a huge pop. Then, we'll show you the next opportunity for money-doubling gains with our top penny stock to buy.
Why Workhorse Is Still a Top Penny Stock
The Workhorse spike came this week after the company's electric trucks, the C650 and C1000, were approved by Federal Motor Vehicle Safety Standards (FMVSS).
You see, Workhorse has a big future ahead. This innovative company is getting an early lead, not just on the electric vehicle wave, but on the delivery business in general.
The company announced an electrically powered pickup truck in 2016. In 2018, the company unveiled a drone called "SureFly." The drone would be purposed toward medical services, military, and urban commuting.
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What's driving its current growth, however, is the 10% stake it bought in an old General Motors Co. (NYSE: GM) plant, the Lordstown Assembly Plant in Ohio. Lordstown Motors is currently building Workhorse's W-15 pickup truck.
Workhorse is currently in a 50-50 partnership with Moog Inc. (NYSE: MOG.A) to promote its HorseFly aerial delivery system. The company has said the drone partnership will help "tackle new markets and create outcomes that are greater than the sum of its parts."
Now, the latest 258% price jump we saw was only on an electric truck win. Imagine, when the drone delivery industry takes off, this stock will have much higher to go. Alphabet Inc. (NASDAQ: GOOGL) reported doubling drone deliveries in the United States and Australia in response to the COVID-19 pandemic.
Expect this technology to take off over the next few years, and keep an eye on Workhorse Group Inc. (NASDAQ: WKHS).
Meanwhile, there is still profit potential in this top penny stock in 2020. It's a rising star set to pop with another budding industry...
Best Penny Stock to Buy Now
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The CBD industry could grow to $23 billion by 2025, according to Grand View Research. That same industry was just $4 billion in 2018. Today, we're going to share one of the top CBD penny stocks from that sector.
Cannabis Sativa Inc. (OTCMKTS: CBDS) is special because it operates Telehealth and Hemp & CBD Consumer Goods. Telehealth is going to soar over the next few years as well, with the pandemic. Teladoc Health Inc. (NASDAQ: TDOC), for example, saw telehealth visits rise 92% in its last quarterly report.
Because Cannabis Sativa has such a broad range of products, it is in a unique position to seize the future when CBD products are accepted into the mainstream.
The company has a subsidiary called PrestoDoctor, which is the first marijuana firm to join the American Telemedicine Association. It connects physicians with patients to recommend cannabis products online.
Cannabis Sativa has "over 400 lab-tested CBD products." And it's beating other CBD companies to the punch, as its facilities have been registered with he FDA.
The company doubled its revenue last year, from $505,000 to $1.1 million. Simultaneously, the company doubled its cash holdings, from $151,000 to $336,000 and bumped free cash flow from -$690,000 to $92,000.
The extra cash will help it invest in product development, or at the very least protect the company from a crash in a second wave of COVID-19.
Shares go for just $0.64 today. But with its current financials, Cannabis Sativa could double or triple very quickly down the road.
Action to Take: Workhorse Group Inc. (NASDAQ: WKHS) was one of our best penny stocks to buy in January. The stock just popped 258% on some good news. Now, we're onto our next best penny stock: Cannabis Sativa Inc. (OTCMKTS: CBDS), which you can buy for $0.64 today. With solid financials behind this CBD industry leader, it has money-doubling potential over the next year.
The 3 Things You Need to Consider Before You Invest a Single Penny in Cannabis
The cannabis industry is on track to become a $1 trillion industry as it goes global. With that kind of capital on the line, the profit potential here is absolutely stunning.
But you don't want to get into this blindly.
That's why the National Institute for Cannabis Investors teamed up with a very special guest to deliver you three need-to-know considerations before you touch a single cannabis stock.
You can learn all about them right here.
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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.