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Investors are starting to look optimistic about 2021. The Dow soared more than 1,000 points to start this week. The CBOE Volatility Index has also cut down to nearly half its late-October peak of 40 to the low 20s.
And with such a huge pop in the markets, there are bound to be low-cost, high-upside opportunities over the next few weeks.
Our best penny stock to buy today is one of those.
While the low share price of penny stocks helps them gain alongside broad market moves, not every penny stock will soar higher. That's why we look for stocks that fit the definition of a penny stock but have serious upside potential.
According to the U.S. Securities and Exchange Commission, a penny stock is any stock trading under $5 per share. We start there, then look for the best stocks under $5 a share to find excellent companies with real growth chances.
For example, we said how one penny stock, Gogo Inc. (NASDAQ: GOGO), was set to pop back in July, when it was trading around $3. Today, it trades above $8. That was a more than 166% gain for readers who listened.
Penny stocks are highly volatile, and any small piece of good news from within the company or the broad market can move them up or down significantly. In the case of Gogo, the company has been working toward building a 5G network for airlines like Delta Air Lines Inc. (NYSE: DAL) and United Airlines Holdings Inc. (NASDAQ: UAL).
With 5G continuing to expand more rapidly with each day, there are several penny stocks that could double or even triple your money in a matter of months. Our top penny stock today could earn you 300% if you get in at the right time.
Like Gogo, this penny stock is also capitalizing on a world-changing technological trend…
Why It's the Best Penny Stock Now
We're going to start seeing infrastructure and digital technology converge dramatically over the next few years. And the early tremors of that could be seen in the potential of our penny stock today.
A growing Internet of Things is bringing cloud technology, advanced data analytics, and cybersecurity to fields where it might have been an afterthought before.
This is taking place while technology solutions also become more integrated. Basically, instead of dedicating software products to just one service, technology companies want to provide a full range of capabilities to their customers.
One of those fast-changing industries that will soon rely heavily on Internet technologies will be logistics. With the rise of 5G, Internet of Business expects the global "connected car" market to grow 270% by 2022.
That's only cars that will be connected to the Internet for repair and maintenance purposes. Beyond that, you also have self-driving vehicles on the way that will be using the Internet at an alarmingly higher rate.
Sure, this is going to transform how you and I get around, but where the change will be most concentrated, meanwhile, is in the logistics industry.
Shipping will take on an entirely new face in the years to come, with companies delivering products by both truck and drone. These diversified "fleets" will require top-notch cybersecurity and data systems to keep them running smoothly and automating wherever possible.
This penny stock provides just that, which is why it's set for 300% gain in the near term.
The Best Penny Stock to Buy
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.