3 Top Penny Stocks to Buy Now for 200% Gains

2020 has been an interesting year, to say the least.

It has also been a fantastic year to be an investor in penny stocks.

A surge of new traders to free brokerages like Robinhood has created opportunities for low-priced stock investors to profit unlike ever before.

Of course, the arrival of tens of thousands of new, uninformed traders into low-priced stocks has also increased the dangers of penny stock trading.

All too often this year, penny stocks that have seen sharp gains over a day or two have come crashing back to earth when the narrative behind the move proved false.

Investors who focus on low-priced stocks with great products and the potential for real growth have been able to participate in these stocks' upside potential while avoiding catastrophic losses.

These are the types of stocks I'm interested in and will be revealing for you today...

No. 3: This Top Penny Stock Could Double Your Money

Current Price: $2.85 per share

Flexible Solutions International Inc. (NYSE: FSI) is a Canadian company that makes products that simultaneously reduce water evaporation and energy consumption.

The company's chemicals have wide applications in the energy and agricultural industries, as well as the conservation and swimming pool markets.

FSI's HeatSavr product can significantly reduce the use of energy in both commercial and residential pools.

Using FSI's chemicals instead of heaters or pool blankets to keep pools warm can reduce the energy needed to operate a pool by as much as 30%. HeatSavr will also reduce the evaporation of pool water, reducing the need to refill regularly.

The WaterSavr chemicals can be used to slow evaporation of larger still water bodies like reservoirs, aqueducts, and other water supply sources. It can also be used to preserve agricultural irrigation canals and livestock ponds.

Flexible Solutions is trading at just 11 times earnings right now and is within striking distance of making new highs.

When the stock starts popping up on everyone's list of new 52-week highs and traders realize how undervalued this fast-growing chemical company is right now, we could see money flow into the stock very quickly.

Given the number of new penny stock traders we have seen come into the market this year, that could provide the type of buying pressure that leads to gains of 100% or more very quickly.

A company growing at almost 40% a year for the past five years, like Flexible Solutions, would still be reasonably priced if the stock doubled from the current quote.

No. 2: My Top Biotech Penny Stock Could Get Acquired

Current Price: $1.95 per share

All too often, when we look at low-priced biotech stocks, they are working on new drugs to cure complex diseases none of us have ever heard of before.

That is not the case with DBV Technologies (NASDAQ: DBVT). DBV is working to find drugs that help our immune system fight food allergies.

The company's lead product candidate is Viaskin Peanut Phase III.

That drug is in clinical trials to treat peanut allergies in children, adolescents, and adults.

DBV is also working on drugs that help fight milk and egg allergies.

All of these could be massive markets for DBV Technologies. While getting its drugs to market could take a year or two, DBV announced it would have enough cash to fund operations until mid-2022.

As DBV gets closer to getting food allergies approved and marketed, I would not be shocked to see a larger pharmaceutical company offer to buy or partner with DBV Technologies.

Either would send the stock price rocketing higher.

No. 1: A Penny Stock with 200% Growth Potential

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Current Price: $3.50 per share

SMTC Corp. (NASDAQ: SMTX) is an excellent example of a penny stock with a real business and outstanding growth potential.

SMTC has 50 manufacturing and assembly lines in the United States and Mexico, that provide global electronics manufacturing services.

SMTC sells its services to global original equipment manufacturers and emerging technology companies, including those in the Avionics, Aerospace and Defense, Industrial IoT, Power and Clean Technology, Medical and Safety, Retail and Payment Systems, Semiconductors, Telecom, Networking and Communications, and Test and Measurement industries.

Almost all of its customers are in high-growth technology businesses that I expect to see massive revenue and profit growth over the next decade.

SMTC also has contracts to manufacture electronics for defense agencies and prime defense contractors for airborne, ground, and sea-based weapon systems. The company manufactures electronic warfare and defense equipment, which will be a huge business forever.

SMTC picked up another exciting customer that could be a source of enormous growth in the future.

Violet Defense, a company working on using ultraviolet light's germ-killing power to create healthier spaces, has awarded SMTC a multimillion-dollar, multi-year contract to build its pulsed Xenon UV disinfection devices. These devices kill 99.9% of bacteria and viruses, including the coronavirus.

The few analysts that follow the stock expect a massive earnings increase next year and then long-term earnings growth of about 20% a year.

If SMTC Corp. comes anywhere close to hitting the forecast, the stock could rise by 200% or more over the next year or so.

Three Stocks Even Better Than SMTX

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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