Workhorse Group Inc. (NASDAQ: WKHS) has gained 606% since we recommended it on Jan. 30. We wrote about the stock when it traded for just $2.76, and it's gone as high as $19.50 now.
But there is always another penny stock set to pop around the corner. Our top penny stock today could gain 264% on a recent catalyst.
You see, penny stocks can see huge percentage growth over short periods of time. That's because they trade for under $5, according to the U.S. Securities and Exchange Commission.
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Penny stock investing can be incredibly rewarding, and somewhat risky, depending on how much you know. There are thousands of penny stocks trading on the market. You have to stay on top of the latest trends if you want to separate the winners from the losers.
This involves finding which stocks go up with the broader market, or following a single stock that is ahead of the curve on innovation.
That's what's happening with today's top penny stock.
Here's why it's poised to gain 270%.
Why It's the Top Penny Stock Today
Tech penny stocks tend to see big gains whenever they have a new product or when a new product has passed an industry standards test.
For example, what sent Workhorse rocketing up was passing the Federal Motor Vehicle Safety Standards (FMVSS) test. That meant it would be approved to sell vans in the United States.
Biotech stocks, likewise, get approval from the FDA before they ship. And that can send the stock upward.
Today's penny stock is a biotech that just moved to the next phase in testing a drug to curb alcoholism. This company is in the later stages of having its product approved in Sweden and Estonia.
But this company's stock is trading on the Nasdaq, so you can buy it right here in the USA.
And analysts say this penny stock is an opportunity for 264% gain in 12 months…
The Best Penny Stock to Buy Today
Adial Pharmaceuticals Inc. (NASDAQ: ADIL) is a pharmaceuticals company that specializes in developing treatments for addictions. Its latest drug, ONWARD, is getting some attention for its help in curbing alcohol abuse.
On June 26, the company announced phase 3 trials for the drug in Poland. And now, today, it has been approved for phase 3 clinical trials in Sweden and Estonia.
Tests have shown promise in reducing the quantity and volume of drinking in subjects. The drug could also potentially treat other addictions, such as opioid abuse.
Adial plans to wrap up its phase 3 trial in Scandinavia and Eastern Europe by 2021. It will begin another phase 3 trial in 2022. That means there is still opportunity for this stock to pop even further next year.
The company ended 2019 with 75% more cash than it had in 2019. This will help it proceed in its trials and continue to grow.
Right now, you can buy shares of Adial for $1.37. But watch out, because once ONWARD goes to market, this stock could soar even higher.
Action to Take: Biotech penny stocks can do well when the company proceeds in trials for its products. That's exactly what is happening to Adial Pharmaceuticals Inc. (NASDAQ: ADIL). This penny stock is trading for $1.37 right now, but analysts say it could hit $5 in 12 months. If you pick it up today, that's 264% growth.
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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.