Markets have been on a tear since the S&P 500 dropped 31% between January and March. This has been great for many penny stocks.
And it could still send our top penny stock now soaring 164% within the year.
Because of their low share price, penny stocks tend to make bigger percentage moves than stocks like Amazon.com Inc. (NASDAQ: AMZN) or Alphabet Inc. (NASDAQ: GOOGL).
Workhorse Group Inc. (NASDAQ: WKHS), for example, is up 468% since we recommended it on Jan. 30.
Of course, penny stocks can lose just as bad as they win. But that's what we're here for. At Money Morning, we screen for stocks and trends that are set to break out.
With a V-shaped recovery in the markets, it can be hard to figure out what stocks will do next. The key right now is to look at which trends seemed to stick through the COVID-19 lockdowns.
Of course, we had plenty of work-from-home stocks pop, including technology and apps. We also had pharmaceuticals like Moderna Inc. (NASDAQ: MRNA) spike on coronavirus vaccine news.
But what happens when healthcare and technology collide? Let's talk about this oncoming trend. Then we'll show you how our best penny stock today sits at the center of these two molten-hot sectors...
Why a Healthcare Penny Stock?
When hospitals were overextended in the heat of the COVID-19 outbreak, questions were raised about how to make the healthcare system more efficient.
One industry that works toward this goal is telehealth. This is essentially remote medical services. You could get a yearly checkup by video call.
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Teladoc Health Inc. (NASDAQ: TDOC), one of the leading telehealth companies right now, actually soared in the heat of the crisis. The stock is up 234% on the year.
That's partly because 2020 lockdowns nearly doubled telehealth from 2019 in just a matter of months. But it's also because the telehealth industry is inevitably going to be monstrous. Grandview Research predicts the "connected health" industry will reach $624 billion in sales by 2024.
Key factors for competing in this sector go beyond quality teleconferences and medical equipment. Just as important is making sure online patient records are kept safe and secure.
Teladoc helps facilitate this kind of service - for instance, passing information from doctors to pharmacists. And it's probably a stock to watch as healthcare and technology collide.
But Teladoc also trades for over $200. The stock has already had its pop for the year too.
Fortunately, there is a much cheaper - and much more lucrative - option to target this sector.
We have a penny stock today that is poised to more than double in 12 months, and it's benefitting from the same trend.
Here's our best penny stock today...
The Best Healthcare Penny Stock to Buy Now
In 2017, a company called Auxilio Inc. acquired CyntergistTek - both its business and its name. Auxilio wanted to "meet growing demand from healthcare customers for comprehensive IT security solutions."
Today, CynergisTek Inc. (NYSE: CTEK) helps with cybersecurity, privacy, and compliance for communications in the medical field. This is expected to become increasingly important as patient information becomes more digitized.
This company has worked with hundreds of hospitals and healthcare organizations to educate and improve their cyber systems. Now, with the healthcare landscape changing faster than ever, this company will be called upon to evaluate medical information systems and recommend new solutions.
We already mentioned how this trend is about more than COVID-19. And it shows from CyneregisTek's 2019 annual results. The company increased profits 686% to $14.8 million from $1.8 million in 2018.
Just this month, CynergisTek secured renewals from two big Fortune 1000 and Global 500 companies totaling $950,000 in revenue. The size of their clientele is sure to increase as more healthcare organizations begin to demand more cloud-based security and communications solutions.
CynergisTek shares trade for just $1.89 right now. Analysts say the stock could hit $5 in 12 months. That would represent a 164% gain for today's investor.
Action to Take: Healthcare is changing to a more digital landscape. That's going to bring companies in the healthcare and cybersecurity spaces to the fore. CynergisTek Inc. (NYSE: CTEK) is one of those. You can buy shares for $1.89 today, for 164% profit potential.
Six-Figure Payday Opportunity Opens After the FCC Launches $10 Billion Initiative
Working from home, telemedicine, and even online grocery shopping are trends that've been here for years without causing any problems... until February.
The 88 most populous cities across the United States are now seeing their Internet speeds tumble by 44% (and this could just be the start).
That's why the FCC had to step in - and its $10 billion initiative could translate to a huge payout because of it.
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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.