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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.
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
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.