3 Best Penny Stocks with More Than 100% Upside Potential

This could be the breakout year investors have been salivating over for months.

The combination of stimulus packages from Congress, low interest rates, and widespread vaccination could get the economy roaring as the year progresses. Most economists are now suggesting that 2021 will have the highest growth rate since 1984.

That economic turnaround is going to do wonders for the stock market, and the best penny stocks could see prices surge higher. After all, their share price under $5 means even a small move in price can translate to big percentage gains for shareholders.

But not all penny stocks have this sort of upside. You want to own penny stocks in good companies operating in growth sectors. And the best penny stocks are going to be in sectors that could gain the most as the economy comes back to life.

We've done the research. A growing economy could lead to a real estate revival for commercial real estate and multifamily real estate that lasts for years.

Fears of delinquencies and vacancies have weighed on the stock price of many companies that develop and own commercial real estate in the last year. Offices buildings have been empty, and retail properties were shuttered during lockdowns. Many renters were struggling to pay the rent of their apartment during this pandemic.

As the end of the pandemic comes into sight, the prices of these stocks could explode.

Here are the three best penny stocks to buy right now...

The Top Penny Stock in the Hottest Market

Comstock Holding Cos. (NASDAQ: CHCI) is a real estate investment and asset manager in the country's best real estate market. While other cities ebb and flow with the economy, the largest employer in Comstock's home market in the Washington, D.C., area has been growing pretty steadily for what will be 245 years this July 4th.

Comstock's primary focus is on mixed-use and transit-oriented properties built around stops on the region's mass transit stations. These developments have office, retail, and multifamily properties.

If you have ever driven the Washington, D.C., beltway during rush hour, you can appreciate how attractive the idea of your home and office being right by the MTA station is.

These are class A office and retail spaces that will have no trouble attracting tenants. The apartments are also in high demand as attractive space right next to a subway station is residential nirvana if you live in Northern Virginia.

The Washington, D.C., market is not just about government employees. Anyone who wants to do business with the federal government has an office in the regions.

There are thousands of lobbyists that are located in the area.

All of the high-tech companies have offices in the region.

As the pandemic comes to an end, Comstock Holdings is in a perfect position to see its profits and stock price soar higher in a strong economy.

The Penny Stock that Pays a Dividend Yield of 8%

Franklin Street Properties Corp. (NYSEAmerican: FSP) is a real estate investment trust focused on office properties in the U.S. Sunbelt and Mountain West. Although office REITs have struggled during the pandemic, with the end in sight, the recovery potential for Franklin Street is enormous.

Work-from-home is going to change the face of the office building environment. Companies may be more flexible, but the need for office space is not going to go away. Furthermore, the combination of the pandemic, civil unrest, and the highest cost of gateway city office space has many companies considering smaller, less expensive markets for their office needs in the post-pandemic world.

As the pandemic passes, the sunbelt and Denver markets where Franklin Street has Central Business District office properties will look very attractive looking to get out of the overpriced densely populated cities like New York and San Francisco.

Franklin Street shares have to double to get back pre-pandemic highs. Add in a dividend yield of over 8% and long-term growth potential from a shift away for big cities, and the long-term return potential of Franklin Street Properties shares is massive.

The Best Penny Stock to Buy Now

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Diversified Healthcare Trust (NASDAQ: DHC) owns a portfolio of medical office buildings, life science properties, and senior living communities around the United States. 2020 has not been a good year to own senior living properties, and the company has seen occupancy levels fall all year.

Despite the vaccine being delivered to senior living communities across the United States, senior living will be a tough sell for a while.

The good news is that Diversified Healthcare's medic office and life sciences properties are doing very well. These properties are over 90% leased, with 99% of all rents being paid in a timely manner.

The REIT continues to sell properties in underperforming communities and has disposed of over $300 million worth of properties. The plan calls for a total of $900 million in real estate to be sold. Right now, diversified has 22 properties listed for sale with a book value of about $165 million.

The proceeds will be used to pay down debt, which creates value for us as equity owners.

With a stronger balance sheet and the end of the pandemic in sight, Diversified Healthcare Trust shares could easily double or more in 2021.

The Complete List of Best (and Worst) Stocks for 2021

Wall Street insider Shah Gilani says 2021 could be a gold mine for Americans.

He's showing his subscribers exactly which stocks to buy and which to sell.

But you're getting it all for free - no sign-up or credit card required.

Prices, tickers, and company names will be coming your way fast.

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