Best Penny Stock to Buy Now Could Pop 382% on Major 2021 Trend

The cloud computing industry is seeing a huge shift over the next five years. According to Markets and Markets, cloud companies will be generating a total annual revenue of $832 billion by 2025. That's a whopping 212% from what it was in 2019, just $266 billion.

Our best penny stock to buy now is an opportunity to grab a piece of that. In fact, it's poised for 382% growth within the next 12 months.

Penny stocks have great upside potential when they catch the right break. The U.S. Securities and Exchange Commission defines penny stocks as any stock trading under $5.

The best penny stocks will typically pop on a good earnings report or a technological breakthrough. For example, we recommended Gogo Inc. (NASDAQ: GOGO) in July, and it's gained 217% since then.

Gogo is an example of a company on the fringes of a tech revolution. It provides Wi-Fi to airlines, and it's one of the leaders developing their 5G networks right now.

Other top penny stocks can simply gain on a market rally.

Of course, the direction of the market is incredibly volatile amid a global pandemic. The CBOE Volatility Index is inching close to 30, pointing to high levels of investor worry. Friction ahead of a presidential election doesn't help things at all.

But the volatility could actually be a boost for our penny stock today. Here's why...

Why It's the Best Penny Stock Today

Cloud computing is one of the most resilient trends in the market right now. More enterprises than ever need an agile cloud solution to keep functioning like normal while everyone works remotely.

Forty-two percent of the U.S. workforce had started working from home during the first COVID-19 outbreak. And many of those aren't quitting, vaccine or no vaccine.

Telework was going to be a trend with or without the pandemic. The pandemic merely accelerated it. And that's why you can expect accelerated growth from stocks geared toward remote communications.

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A great example of this was Teladoc Health Inc. (NASDAQ: TDOC), a stock we have talked about before. This is a company that facilitates virtual communication and records keeping between patients and doctors.

Teladoc's remote appointments soared during the peak of the lockdowns earlier this year. Its stock is now up 171% for the year.

But that company is fairly "niche" compared to our best penny stock today. It's also trading at $226... not exactly a penny stock.

The penny stock we're going to show you has a broader range of potential customers. In fact, almost every business could benefit from its services as the working world undergoes digital transformation.

Here's one of the best penny stocks to buy with 382% profit potential...

The Best Cloud Penny Stock Now

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Micro Focus International Plc. (NYSE: MFGP) helps businesses improve their speed, security, agility, and insights in an evolving tech world. Businesses use their software to manage operations and make better decisions.

The company offers software solutions that are both cloud and on-premise. This enables it to adapt to the specific needs of customers today, even if they might not be so up to date with their enterprise systems.

Many businesses today have trouble adapting to the new world of artificial intelligence and cloud computing. Solutions from Micro Focus can help transition them from running purely on local servers to some cloud servers.

It frees up space and time for companies to operate more efficiently and spend less on IT.

Micro Focus is one of the largest enterprise software providers in the world. The company boasts over 300 enterprise-grade products.

The company has over 40,000 customers worldwide. Nearly 100 of those customers are on the Fortune 100.

The company is down 76% year to date. It's fallen from $14.77 to $3.40 on some bad earnings reports. The company lost money in its software-as-a-service segment. Some analysts thought it was being left in the dust by other, more innovative cloud computing unicorns.

But the company just released a new product in August. And it's an opportunity for the stock to gain some ground again. In fact, it has a high price target of $16.44 now.

With the release of ArcSight 2020, Micro Focus hopes to offer better insights and security to its customers. If the company can sell, it could see growth similar to what it had between 2017 and 2018, when revenue jumped 132%, from $1.3 billion to $3.2 billion.

Profits also soared 123% in that time, from $526 million to $1.1 billion.

Revenue still sits at $3.1 billion in the trailing 12 months. There's hope for an increase if the company can adapt to a fast-changing cloud industry.

A $16 price target would represent 382% growth from today's $3.47.

Action to Take: The cloud computing industry is going to erupt in the next few years. There is plenty of opportunity for innovation in this sector. And longstanding companies like Micro Focus International Plc. (NYSE: MFGP) have an advantage. You can buy shares at $3.47 today with the potential to hit $16.44 over the next 12 months. That would be a 382% return.

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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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