The healthcare system has been overwhelmed by the COVID-19 pandemic this year. But that doesn't mean the greater healthcare industry is failing.
In fact, healthcare is going to vastly expand over the next few years. And the particular healthcare sector we're covering today is expected to grow 242% by 2024.
And that's where our best penny stock today comes from.
Penny stocks, according to the U.S. Securities and Exchange Commission, trade for under $5 a share. The low share price helps the best penny stocks to make huge percentage gains when a catalyst shoots them higher.
Sometimes, a penny stock catalyst will be a move in the broader market. Other times, it can be a new product, an earnings surprise, or other exciting news.
For example, we recommended Workhorse Group Inc. (NASDAQ: WKHS) back on Jan. 30. It traded for $2.76. Since then, the company's electric vehicles have passed safety inspections.
The stock is now trading above $17. Investors who bought in would have made 523% by now.
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...
That's the kind of potential that can be realized with penny stock investing. But it's not always that easy.
Finding the best penny stocks requires a keen sense of timing. And even before that, you have to know where to look.
Fortunately, Money Morning looks for you. And we've found a top penny stock with 222% potential in this innovative sector....
Why It's Our Best Penny Stock Today
When it comes to medical innovation, it's hard to think beyond gene therapy. This is the market of healing people by literally going into their DNA and tweaking it.
This industry has posed some big philosophical questions and is still understood to be "experimental."
Solving tough questions, like beating cancer is a major focus within the field. Some people are more genetically disposed to cancer than others. Gene therapy, in that situation, would seek to change that.
It gets to the root of the problem rather than treating it with medicine later. That's why this market is going to be so huge.
According to Markets and Markets, the gene therapy sector is expected to grow from its value of $3.8 billion in 2019 to $13 billion in 2024. That's 242% over five years.
Our best penny stock today is going to get a piece of that. Here is the 222% gainer we're talking about...
The Best Penny Stock Today
Abeona Therapeutics Inc. (NASDAQ: ABEO) has a fairly broad approach to gene and cell therapy. This biopharmaceutical company researches gene therapies at the clinical stages for a variety of serious and life-threatening diseases.
The company calls itself a "fully-integrated gene & cell therapy company." This wide net can be a good thing, as it invites a number of different firms and agencies to consult with it.
Abeona has been getting heavy into its research, increasing research & development spending by 461%, from $1.6 million in 2017 to $3.9 million in 2019. This will be a common trend for companies across a niche market like gene therapy in the years to come.
But Abeona's operations have brought in a lot of investor interest.
The company had a public offering last year that gave it 616% more cash for 2019 than in 2018, going from $18.7 million to $129.3 million.
The big payoff for this company will be down the road as gene therapy is further accepted in the mainstream. Meanwhile, the company is engaged in a variety of tests.
Most notably this year, Abeona is currently in a phase 3 clinical trial for a therapy meant to treat recessive dystrophic epidermolysis bullosa. It's a condition that involves very fragile and blistering skin on hands, knees, feet and elbows.
Trials were halted due to COVID-19, but commenced only three weeks ago. Passing a phase 3 trial is one of those things that can give penny stocks a tremendous boost.
Analysts give this particular penny stock a target of $9.43 from today's price of $2.89 over 12 months. That would be a 222% gain for today's investor.
Action to Take: Healthcare is on its way to a big revolution in the coming years. So we chose a biopharmaceutical company as our best penny stock this week. Before gene therapy gets its day in the sun, see about buying shares of Abeona Therapeutics Inc. (NASDAQ: ABEO) for $2.89 as the company seeks to complete phase 3 trials on a therapy. It could pop 222% within 12 months.
The FCC's Recent $10 Billion Initiative Is Going to a Single Technology
The White House has put a new Internet technology on the fast track.
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And folks who strike while the iron's hot stand to lock in an unprecedented windfall.
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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.