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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
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.