Doubling your money is rare if you blindly choose any penny stock from the shelf. But you can better your chances by looking at cheap stocks with high earnings expectations.
Analysts believe one of our best penny stocks to buy now could more than double its earnings - 116% - over the next year.
Everyone from Peter Lynch to Warren Buffett has said that, at the end of the day, it's earnings growth that drives stock prices.
Penny stocks with high earnings potential present an even bigger opportunity. Their low prices enable them to grow by greater percentages in shorter spans of time.
The U.S. Securities and Exchange Commission defines any stock trading under $5 as a penny stock. Our top penny stocks today all trade around the $3 and could see massive growth over the next year.
This first one is in a league of its own...
The Next Reddit Penny Stock to Buy
Senseonics Holdings Inc. (NYSE: SENS) popped dramatically last week when it announced that its next-generation glucose monitoring technology yielded positive results in the latest studies.
Senseonics makes the world's only long-term, implantable continuous glucose monitoring system, the Eversense CGM System. The 180-day version of the sensor showed high levels of safety and accuracy in the study. The positive results get Senseonics one step closer to being able to sell the systems in the United States and Europe.
Wall Street seems pretty excited about the stock. The consensus estimate calls for earnings to explode 80% by next year and for growth to average 32% over the next five years.
You will have to jump on Senseonics shares quickly. It looks like the mad men and women of Reddit are starting to notice. And we have seen what can happen when those folks pile into a stock.
But you don't have to hope for the Internet to pump the price of this next penny stock. This next one is due for a summer growth spurt...
The Summer Reopening Penny Stock
Drive Shack Inc. (NYSE: DS) remains a favorite penny stock. Its combination of driving ranges, restaurant and cocktail lounges will see a lot more traffic as the United States reopens for business.
Drive Shack's newest offering, the new social entertainment mini-golf experience Puttery, is continuing to move forward with its plans to open locations in Dallas and Charlotte this summer. A third location in Washington, D.C., has been announced as well.
The regular Drive Shack locations featuring a driving range, dining, and bars saw decent business in the first quarter as the reopening began. That segment of the company should see accelerating revenue as people head out in search of entertainment this summer.
The pandemic helped spur new interest in golf as it is one of the few sports where social distancing was possible. Drive Shack's five traditional golf courses have all seen steady growth in membership sales and rounds played as well as green and cart fee revenue.
The combination of traditional golf courses and the growth potential of golf entertainment locations makes this company a candidate for explosive stock gains.
Analysts expect earnings to grow by 30% a year for the next several years, which should move the stock to multiples of the current stock price.
Of course, that's nothing compared to the 116% earnings growth potential from our top penny stock...
The Best Penny Stock to Buy Now
Uranium Energy Corp. (NYSE: UEC) declined with other uranium shares on Monday. And we think the market is getting this one wrong.
Although U.S. climate change activists are not big fans of nuclear power, a look at Europe could change their minds. France, in particular, has done a fantastic job reducing emissions by using nuclear energy.
France produces electricity so cheaply with its nuclear power plants, it is the world's largest net exporter of electricity.
Anchorage Capital, a hedge fund that focuses on operational turnarounds and special situation investments, thinks that the price of uranium will rise sharply over the next few years. It has been buying physical uranium to bet on a recovery in uranium prices.
Over the past two years, it has accumulated several million pounds.
There is no path to 100% non-carbon power sources that does not include nuclear power. Even the Biden administration wants to step up spending on nuclear energy.
Given the global rush to reduce carbon emissions, it is hard for us to see how Uranium Energy does not double in price at a minimum from current levels.
Analysts are looking for a massive 116% improvement in earnings next year, which should help launch the stock higher.
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.