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Foreign penny stocks have been a source of massive profits over the years. They tend to be a little higher-risk in nature. But the ones that work make the venture more than worthwhile for some investors.
With that, we have for you some of the best penny stocks today that are based outside the United States.
Again, the payoffs can be huge, so there is no need for large positions.
As the coronavirus has made its way around the world, bank stocks have taken a hit worldwide. Interest rates are low, and the fears of loan defaults keep buyers out of the bank stocks right now.
Latin American banks have been hit particularly hard so far in 2020. Many Latin nations are among the hardest-hit by the virus. Of course, Brazil has been the poster child for how not to manage a pandemic in the regions.
The region is going to take a substantial economic hit as the virus continues to spread. This is reflected in the price of its bank stocks.
And that brings us to our first top penny stock to buy now, at a 50% discount…
Best Discount Penny Stock
Colombia has been in lockdown for several months now. And the lockdown was just extended until the end of August.
So far, the country has had 267,300 coronavirus cases and 9,074 deaths. And it's put this penny stock at a massive discount.
Don't Miss: We're now in the midst of a generational buying opportunity, and these three stocks are "screaming buys." Click here…
Shares of Grupo Aval Acciones y Valores S.A. (NYSE: AVAL) have fallen by almost 50% this year in response to the pandemic's economic pressure.
This bank has 1,341 branches, 3,535 ATMs, 69 payment collection centers in Colombia. It also has 762 branches, 2,136 ATMs, and 8,860 other service points in Central America. It had been growing consistently before the pandemic, and growth should begin quickly when the virus has passed.
Colombia is one of the more economically and politically stable countries in the region. The government has been aggressive about fighting the virus. The central bank has taken measures to support the economy.
In normal times, Colombia is the fourth-largest economy in Latin America as measured by gross domestic product. Although much of the economy is still commodity-based, Colombia is Latin America's second largest producer of domestically made electronics and appliances only behind Mexico.
When Colombia's economy opens back up, it is reasonable to expect the bank's shares to recover quickly, giving investors a double or better.
The Penny Stock to Own with COVID Treatment
Banco Santander Mexico SA ADR (NYSE: BSMX) has also seen its stock price hit by close to 50% thanks to COVID-19. Mexico is fighting a bad outbreak of COVID-19 with the third-highest number of deaths globally. Crowded Mexico City is the epicenter with over 40% of hospitalization.
Mexico is partnering with AstraZeneca Plc. (NYSE: AZN) and Argentina to produce up to 150 million doses of a coronavirus vaccine in early 2021 and eventually produce 400 million doses in the region. While that is dependent on a vaccine being discovered, it is a positive sign that the government is prepared to do whatever is necessary to control the pandemic and get the country back on its feet.
Banco Santander Mexico is a large bank with 1,402 offices, 9,015 ATMs, and 3,007 contact center positions. The bank has been in business since 1932, so it has dealt with other healthcare and economic crises during its lifespan.
The bank grew its deposits and loan book in the most recent quarter. While loan losses are a concern if the bank can match last year's dividend rate, the yield on the stock will be about 10%.
This stock should double when we get a vaccine or effective treatment, and returns of three and four times the current price are possible after that.
Now here's one of the best penny stocks to buy today for up to 633% profit potential. A speculator's dream…
Best Penny Stock to Buy Now
Argentina is one of these countries often referred to as a hot mess. But it has been very aggressive about dealing with the virus.
Argentina's president, Alberto Fernández, instituted a tough lockdown early in the pandemic to limit the spread of COVID-19. As a result, it has been able to contain most of the cases to the city and province of Buenos Aires. The outlying regions have seen only sporadic infections.
The economy has paid the price for lockdown as Argentina is experiencing a recession right now.
Argentina should be a developing market success story. For a host of political reasons, it is not. Argentina has experienced nine sovereign debt defaults since its independence and 20 International Monetary Fund bailouts.
Banco BBVA Argentina SA (NYSE: BBAR) is one of the leading publicly traded banks in the country and has been in business since 1886.
The story here is straightforward. If the country gets its economic act back together, the stock is going back to $25 – or about eight times the current price. If it remains in a slowdown, the stock won't do much.
It is a hero or zeroes trade with a 633% potential payoff.
This Could Be the Largest Buying Opportunity in Stock Market History
Money Morning is launching its first-ever stock-picking lightning round event.
Our chief investment strategist will be flying through stocks – more than 50 – telling you which to consider buying NOW and which to drop like a ton of bricks.
These picks will be coming fast and furious.
Make no mistake: This event will be rapid-fire – you will want to take notes.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.