We're entering the home stretch of the weirdness that is 2020, still with a wild election ahead.
And there are still are some high-upside penny stocks to buy before the election if you want to start 2021 on the right foot.
The one thing we definitely don't want to see end in 2021 is the remarkable penny stock run we've had.
We wrote about Gogo Inc. (NASDAQ: GOGO) in July when it was trading around $3, and it's since hit as high as $10.93. That's a gain of 264% for some investors.
We also wrote about Workhorse Group Inc. (NASDAQ: WKHS) when it traded for around $3 in January. That monster is up 814% at $27.42 per share.
Institutions have also begun to recognize certain penny stocks as "hidden gems." Once these stocks passed above the $5 threshold, cash poured into them, and they multiplied in price rather quickly.
Insiders at companies trading at penny stock prices have also placed big bets on their own stock this year. They invested even as COVID-19 and political disruptions cast doubt on the markets - a sign of good faith.
Penny stocks like that are still out there. You just need to look in the right places.
Let's take a look at the three best penny stocks to own as the election season takes place.
A Penny Stock That Pays
FlexShopper Inc. (NASDAQ: FPAY) is a financial and technology company that provides brand-name electronics, home furnishings, and other durable goods to consumers on a lease-to-own (LTO) basis through its e-commerce marketplace. It also offers other retailers and e-commerce companies lease-to-own payment platforms.
E-commerce has been robust, and many cash-strapped consumers choose to use lease-to-own to buy the things they want or need during the pandemic.
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The rest of the year looks promising as well since many new retail partnership rollouts scheduled for the first quarter have been delayed. States have opened back up, and these projects are coming online. That should help increase revenue and profits in the second half of the year. Insiders are very excited about the prospects for the company and have consistently bought up stock in the past few months.
Analysts that follow the stock are projecting a massive earnings increase for next year that could easily take the stock to $5 or more from the current levels.
The stock currently trades at $1.79, so hitting $5 would mean a gain of 179% for today's investor.
My Chemical Penny Stock
There's been quite a bit of insider buying with this next pick as well.
Flotek Industries Inc. (NYSE: FTK) has historically been a chemical company that primarily does business with the oil and gas industry. That has not been a very exciting business, and with rig counts dropping, it has not been a great business for the past few years.
That changed in March, when new CEO John Gibson made a deal to buy JP3 Measurement LLC, a privately held leading data and analytics technology company.
JP3's innovative, real-time data platforms combine the energy industry's only field-deployable, inline optical analyzer with proprietary cloud visualization and analytics. That's a mouthful, but it's a platform that helps oil and gas companies make data-driven decisions about production and pricing.
It is potentially a billion-dollar market, and Flotek will be a big player in the field.
Insiders are excited and have been buying the stock at a fast pace in the last few months. It is effortless to see this company becoming a market leader in oil and gas data platforms with a soaring stock price over the next few years.
This penny stock currently trades for $2.88. But it could more than double as it grabs its share of the oil and gas data market.
Hottest Penny Stock on the Planet
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Newgioco Group Inc. (NASDAQ: NWGI) is in one of the hottest businesses on the planet.
The Canada-based company offers innovative alternative wagering system services online operators, resort concept casinos, retail neighborhood betting establishments, and franchise distribution networks.
Newgioco Group currently operates in 12 countries around the world. The big story is that it is in the process of entering the U.S. market. It is working with both tribal and non-tribal casino operators to offer online gambling and sports betting services to their customers.
COVID-19 hit the company pretty hard. Italy is one of its biggest markets, and it operates in many locations, including bars and coffee shops that were closed for several months. These fully reopened in June and are running full throttle once again. Newgioco took advantage of the shutdown and acquired some smaller competitors in Italy that had a difficult time dealing with the shutdown's economic impact.
Insiders, including the CEO, have been aggressively buying the stock in the past month. This is a fast-growing company in some of the most exciting businesses in the world. Its continued expansion in the United States could easily cause the stock to soar five times or more than the current price.
That would be growth to about $9.35 from today's $1.87 per share.
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About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.