Best Penny Stocks to Buy Before Election Day Could Earn Near 144%

Penny stock investing continues to be one of the most exciting and profitable opportunities in 2020. And today, we're covering some of the best penny stocks to buy before election day...

Volumes have exploded in these low-priced stocks since new traders and investors entered the markets during the shutdown.

A lot of the new traders have jumped on the rumor and story bandwagon. The chatrooms at Robinhood and other trading sites have stirred up some ridiculous trades this year. We have seen bankrupt, worthless companies double and triple in value. Small companies with exciting names but no real business were bid up to stupid levels.

The traders who started the story or got in super early made a ton of cash.

If you got there late, you lost a ton when reality struck. If you are new to stocks, write this down somewhere: Reality always returns at some point.

This does not mean that you should give up trading penny stocks. There are tremendous opportunities to make massive amounts of money in stocks trading for less than $5.

The trick to successful penny stock investing is to look for penny stocks where the business is improving rapidly. These best penny stocks today could have earnings explode over the next year or so, which would mean a huge payout for investors.

When it surges past the $5 level, all the big funds that are not allowed to own low-priced stocks can get into the game.

Their buying power often creates another surge, giving us returns of multiples of our money and not just percentages.

Without further ado, here are the best penny stocks to watch right now...

The Hollywood Penny Stock Pick

Eros STX Global Corp. (NASDAQ: ESGC) is a global entertainment company that could see explosive growth from earning improvements. Eros STX was formerly just Eros International but recently combined with STX Corp. The new company combines one of India's largest movie streaming services and premier studio with one of Hollywood's fastest-growing independent media companies.

Analysts expect the powerhouse combination to drive earnings higher by more than 35% next year.

This is not some story stock with no underlying business. Eros STX owns a studio that has collected $1.8 billion in box office revenue in the past five years with movies like "Hustlers," "Bad Moms," "The Gentlemen," "Molly's Game," and "The Gift."

It also owns Eros Now, which has rights to over 12,000 films across Hindi and regional languages and had 205.8 million registered users and 33.8 million paying subscribers as of June 30. India is one of the world's largest economies, so there are still massive growth opportunities for this part of the company.

It is hard to see how the huge earning gains do not lead to spectacular profits for shareholders.

This penny stock trades for $2.40 right now, but analysts are targeting $4.50 over the next 12 months, which represents a gain of 87% for investors.

This next top penny stock, however, could double in the next year...

More Power to This Penny Stock

Charah Solutions Inc. (NASDAQ: CHRA) makes money by cleaning up the mess made by coal-generated power plants. Specifically, Charah offers development, construction, and management of landfills for coal-fired power generation facilities and ash ponds, as wells as active pond management services.

Charah also offers nuclear cleanup and remediation services.

Analysts are expecting earnings to increase by 177% next year.

As is the case with our other picks, if the analysts are anywhere close to right, we could see massive price increases in the stock over the next year.

Analysts say Charah stock could rise from $2.96 to $7 over the next 12 months, which would be a gain of 136%.

That is still not as high a pop as our next best penny stock...

Top Penny Stock with 144% Potential

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Digirad Corp. (NASDAQ: DRAD) is a great example of the type of penny stock that may well be ready for a bump in price over the next year.

Digirad has three divisions. The healthcare division sells proprietary solid-state imaging cameras for hospitals and physicians. The healthcare divisions also provide mobile diagnostic imaging including CT, MRI, PET, PET/CT, and nuclear medicine and healthcare expertise to hospitals. They supply integrated delivery networks and federal institutions on a long-term contract basis.

The building and construction division designs and manufactures custom, modular housing units for single-family and multi-family projects. The division possesses the largest production capacity of any modular manufacturer in New England.

The third and final division of the company manages its real estate and investment holdings.

Earnings are expected to shoot higher by more than 900% next year.

If they come anywhere closer to analyst expectations, we could see the stock explode by several hundred percent by the end of 2021.

This penny stock trades for $2.86 right now. Over the next 12 months, analysts give DRAD an average target of $7, which represents 144% growth for today's investor.

Three Stocks Even Better Than DRAD

Chief Investment Strategist Shah Gilani just held his first-ever stock-picking lightning round event - running through more than 50 stocks to tell you if they are stocks to buy or stocks to sell.

Dozens are overpriced and overhyped - you should ditch them ASAP.

But Shah says THESE three stocks are "screaming buys."

All three are trading at a discount... they're under-the-radar companies most people haven't even heard of... and they have massive tailwinds ready to send their share prices into the stratosphere.

To get the company names, tickers, and price targets for Shah's picks, go here now.

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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.

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