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2020 gave birth to a huge wave of new traders. And their buying could provide the backdrop for a continued rally in penny stocks going into the new year.
Any of our best penny stocks today might have a shot at beating our winners from the past year. And that's saying a lot.
In January, we recommended Workhorse Group Inc. (NASDAQ: WKHS) at $2.76, and the stock is now pushing $20. That was a 624% return for some of our readers as electric vehicle stocks took the markets by storm.
Later, in July, we said airline Wi-Fi provider Gogo Inc. (NASDAQ: GOGO) was set to pop at least 120% as it unrolled new products and made progress in 5G. Th stock is now at $9.61, 200% above the July price of $3.17.
If you listened, you saw a nice return. But if you missed these, you have plenty of opportunities awaiting in 2021.
A return to a normalized economy thanks to the vaccine could also help drive stock prices higher in the coming year. That should help the rally in low-priced stocks to stay alive.
Without further ado, here are our top penny stocks to buy now.
The Penny Stock Advancing Radiation Therapy
Accuray Inc. (NASDAQ: ARAY) is an excellent example of a low-priced stock with the products to help drive continued earnings growth that can push stock prices a lot higher. It sells radiosurgery and radiation therapy systems for the treatment of tumors in the body. Its products make treatments shorter, safer, and more effective.
Accuray is expected to start doing more business in China next year, which should help drive significant revenue and earnings growth for this company. Accuray has a joint venture with China Isotope Radiation Corp.
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It is opening a Tianjin China training center in September and in-person class instruction for customers. This a huge step in getting Chinese medical professionals with the platforms offered by Accuray and how these platforms can be used to help patients.
There are four analysts covering Array right now, with an average price target of $7. We should see more Wall Street coverage once the China market is fully opened for Accuray and revenue begins to climb.
Accuray also saw its products awarded 24 Type-A radiotherapy license awards for use in hospitals recently. That should also help boost revenue from China next year.
The stock has strong momentums as we enter 2021, and that should drive the stock over the $5 area and attract institutional interest and buying power.
The Best Penny Stock in Finance Tech
BGC Partners Inc. (NASDAQ: BGCP) is a global brokerage and financial technology company that provides trade execution and broker-dealer services. Its clients are many of the largest banks, broker-dealers, investment banks, trading firms, hedge funds, governments, corporations, and investment firms.
BGC's technology can help its clients trade a wide range of asset classes, including fixed-income securities, interest rate swaps, foreign exchange, equities, equity-related products, credit derivatives, commodities, futures, and structured products.
The widespread acceptance of electronic fixed-income trading together with record levels of debt issuance around the world should help drive growth for BGC Partners in 2021 and beyond.
In just two years, its Fenics U.S. Treasury fully electronic platform has captured a 13% market share. Management at BGC Partners believes the same type of growth can be achieved in other fully electronic platforms, including its new Fenics GO fully electronic options trading platform.
BGC Partners is considering switching from a partnership to a C Corporation. That could have significant tax advantages and help the stock mover higher in the first half of 2021 if that announcement is made.
BGC Partners is trading at less than seven times what analysts expect it to earn in 2021. Other fintech companies with a much smaller market share trade at double-digit multiples, and so should this stock. BGC Partners could quickly soar back above $5 and be a market leader in 2021.