Markets have recovered from their worst during the COVID-19 outbreak. But even as economies start to reopen, there are still looming concerns about another coronavirus wave hitting in the fall.
Our top penny stock to buy could still pop 132% regardless.
According to the U.S. Securities and Exchange commission, a penny stock is any stock trading for $5 or less. Penny stocks can gain or lose by huge percentages on a catalyst. And the low share price makes this possible.
For example, we recommended Workhorse Group Inc. (NASDAQ: WKHS) back when it traded for $2.76 in January. Today, it trades for $17.05. That's a gain of 517% in just six months. Hard to beat.
Workhorse popped on a signal from the electric vehicle industry. The company met safety standards for its new electric delivery vehicles.
We have a similar story brewing in another industry. And it could very well send our best penny stock today up 132%...
The Top Penny Stock Catalyst
We've been covering marijuana stocks for a while now. This is an industry poised to reach $73.6 billion in value by 2030.
The industry has been gaining momentum, normalizing into the culture for years now. Canopy Growth Corp. (NYSE: CGC), for instance, has several celebrities endorsing it, including Martha Stewart and Snoop Dogg. Athletes have come out in support of CBD, a cannabis derivative, for its health benefits. Those include Rob Gronkowski and Bubba Watson.
COVID-19 lockdowns inspired a lifestyle change that's kicking a new billion-dollar market into high gear - and this stock is the best way to play it. Get the pick here - it's free...
But possibly the biggest catalyst for pot stocks occurred in 2020. The coronavirus did not slow down the cannabis industry. In fact, it gave it a boost...
Lawmakers have begun to seriously consider passing marijuana legalization in their states to grow their budget. Oklahoma Representative Scot Fetgatter said COVID-19 would cost his state $220 million this year. The state was exploring ways to account for that back in April. Chief among those was marijuana legalization.
We had already seen states like Illinois rake in the tax revenue from legalization. Their revenue on marijuana is expected to hit $34 million in 2020, then $375 million in 2024.
More recently, the National Review reported that sweeping federal legalization could inject $53.23 billion into federal, state, and local budgets. They said that would be enough to "cover the cost of treatment" for more than $37 million COVID-19 patients.
But the good news would not stop at tax revenue. It would also create new businesses. In fact, the booming CBD business could employ up to 20% of workers displaced by the pandemic.
And that's where our top penny stock happens to be right now. This is the best CBD penny stock to buy today...
Best CBD Penny Stock Now
CVSciences Inc. (OTCMKTS: CVSI) has long been on our list of favorite CBD penny stocks.
This stock has proven the growing popularity of cannabis products with its presence in thousands of stores. Its product, PlusCBD, along with many others, is available in both Kroeger Co. (NYSE: KR) and Harris Teeter.
That means if we face a second wave of coronavirus, CBD is still an essential item. Whether or not states lock down, CVSciences products will be accessible.
Between 2017 and now, CVSciences has increased revenue 159%.
As a result of rapid expansion, CVSciences has increased total revenue by 159% from 2017 to now. And don't underestimate the effect of its availability in stores. As this brand gains ground, this number is most likely to soar even higher.
For now, the stock is at an incredible deal. CVSciences trades for just $0.58. Analysts are giving it a 12-month target of $1.35 That's growth of 132%.
You're going to want to be holding this before the CBD industry blows up.
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.