The Best Penny Stock to Buy Now Has 190% Potential in 2020

Markets will continue to be unpredictable this year. But there is one trend that isn't going away, COVID-19 or no COVID-19.

In fact, our top penny stock to buy now could pop 190% on this trend.

We're talking about the 5G industry. It's expected to be a $667 billion industry by 2026. That's more than 13,000% from today's estimated $5 billion.

You see, penny stocks can pop by huge percentages because of their low share price.

Because they trade for under $5 a share, a bit of good news can make for a giant percent gain. It can be as simple as a positive shift in the broad market indexes, Dow Jones, or S&P 500. Or it can be a slice of positive industry news.

For example, when we recommended Workhorse Group Inc. (NASDAQ: WKHS) back in January, it was trading under $3. The stock has since popped 440% to above $14 now that the company's electric trucks were approved under federal safety standards.

Now, this 5G catalyst is going to send our top penny stock to buy today soaring 190%...

The Top Penny Stock Catalyst Now

The 5G industry is going to reshape the world as we know it. It's already been happening before your very eyes. Towers have been going up. Telecom companies have initiated their services. 5G chips are being made, and 5G phones are underway.

But that's just the beginning for this life-changing industry.

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The speeds of 5G - up to 100 times faster than 4G - are said to allow for things like self-driving vehicles. It's going to make possible, for the first time, remote surgeries. Communications will be clearer, and there will be a broader range of coverage across the world with a better signal.

Before anything, however, 5G is going to change how media is consumed.

With a dramatic shift from cable to digital-mobile broadcasting, 5G will only expand that world with better, more attractive service. It's a new slice of pie for telecom companies to seize on.

This goes beyond AT&T and T-Mobile. There is a broad range of sectors in the 5G industry, so companies are working hard to capitalize on their audience as networks are still in the process of finding their place.

Broadcast media providers - and those invested in them - see an opportunity to grow their brand.

That's where our top penny stock today comes in. Here is a 5G penny stock that could soar 190% even before the 5G industry peaks...

The Best Penny Stock to Buy Now Could Triple

HC2 Holdings Inc. (NASDAQ: HCHC) is a New York-based financial services company with stake in the telecommunications sector. It has a long history, started in 1994.

This company used to go by the name Primus Telecommunications Group Inc. The intention was to provide facilities-based services in telecom globally.

Through a number of acquisitions in Canada, Australia, and London, the company has built its portfolio to over $6.9 billion in assets.

That portfolio includes a host of TV and Internet providers. HC2 was named the "fastest growing technology company" by Deloitte & Touche in 2000. Back when it was called Primus, HC2 teamed up with Hewlett-Packard Inc. (NYSE: HPE) to expand its telecom network.

The stock struggled in the aftermath of the U.S. financial crisis in 2008. Revenue from its dial-up and long-distance phone services began to shrink. You could also partly blame this on the rise of mobile technology.

Since then, however, it has made even more acquisitions, picking up power stations around the world. Now, changes to technological standards via 5G are prompting the company to use its resources to adapt to a new landscape.

Providers of on-air content - much of HC2's portfolio - will adapt to customer demand for new cable and TV packages suiting their mobile and digital needs. If these companies can adapt, it will greatly benefit H2's bottom line.

This company took in $1.9 billion last year and the year before. Revenue is up 25% since 2016. Its profit has dipped to the negative since 2018. But a growing investment in 5G infrastructure could get this company back in the green.

In fact, some analysts think this stock could hit $8.50 over the next 12 months - up 190% from today's $2.93.

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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.

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