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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
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.