The 3 Best Penny Stocks To Buy

Penny stocks are a hot topic, and for good reason. While there are inherent risks involved in investing in these stocks, they also have the most potential for growth and are often undervalued. 

So, it comes as no surprise that you’re looking for penny stock opportunities to tap into. 

However, trading penny stocks can be a dangerous game, with research being an important part of success. As with any stock, not all penny stocks are created equally and some will be great picks while others might be duds. 

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The 3 Best Penny Stocks To Buy Right Now

Before buying any penny stock, there are a few questions investors should ask themselves:

  1. Is The Company Solving A Problem? Problem solvers are the biggest money makers on Wall Street, and tapping into them while their young can lead to tremendous profitability. 
  2. Is There Demand? Even if there’s a problem, the vast majority of people may not know that problem exists, leading to a lack of demand and an expensive process of educating consumers before making it big. It’s best to look for stocks that solve a problem everyone knows about in order to tap into demand that already exists. 
  3. Is The Company Already Turning Heads? Finally, investing in companies that don’t yet have a product or that produce a product that’s not getting much attention can be a formula for losses. When investing in penny stocks, it’s important to look for companies that are already garnering attention from their audience and the big players that serve that audience. 

With that in mind, here are three penny stocks that should be on your radar:

Globalstar (GSAT)

Globalstar operates a low-orbit constellation of satellites designed to provide reliable connectivity solutions to businesses. The company offers satellite cell phone connections as well as low-speed data connections that are available, regardless of whether or not cell coverage is available in the area. 

This provides a solution to a very big problem for businesses. 

The fact of the matter is that in rural America, cell phone coverage is hard to come by, resulting in loss of communication with employees and potential customers. Moreover, data systems often fail. By taking advantage of satellite services, the failure rate is minimized. 

Nonetheless, I’m not the only expert that has taken recent interest in the stock. 

In fact, analysts at B. Riley, one of the most trusted analyst firms on Wall Street, see the stock as a tremendous opportunity. In fact, the firm recently initiated coverage on the stock, setting a price target of $3.25 per share, suggesting the potential for gains in multiples. 

Nightfood (NGTF)

Nightfood is a small company with massive potential that’s derived from its desire to solve a problem that, not only does everyone face, the vast majority of consumers know about and deal with on a daily basis. 

Night time snacking!

In the caveman days, when calories weren’t so readily available, night time cravings of sugars, fats, and proteins were a survival mechanism. However, in today’s world, where calories are plentiful and readily available, these cravings work against you, leading to significant health issues like obesity and lack of sleep quality. 

Nightfood is aimed at changing that. 

The company has formulated nine flavors of ice cream that are designed to crush the cravings with as few calories as possible while promoting better sleep quality and a healthy lifestyle. In fact, the formulations the company has created are so effective in satisfying the night time snacking craving in a healthy way that Nightfood has been named the official icecream of the American Pregnancy Association. 

At the same time, the company has grabbed the attention of big box retail players, making its way into more than 1,000 Walmart stores across the country and major supermarket divisions of Kroger and Albertsons. 

That’s a huge statement. Not only is the company solving a significant problem, it has grabbed the attention of major players that cater to its target audience, but just how big is that audience?

Massive! 

At the moment, the night time snacking market in the United States is worth more than $50 billion annually. At the same time, there’s little by way of talk surrounding offering healthier varieties of snacks to satisfy the cravings among major manufacturers. 

As a result, when we talk about Nightfood, we’re talking about a company that’s not only catering to a massive market, but doing so in a way that will benefit market participants at a time when those participants are paying more attention to what they put in their bodies and how their eating habits play a role in their overall health. 

The bottom line is simple. Nightfood has created compelling products aimed at a massive market that solve a significant problem in the United States, grabbed the attention of big box retailers, and earned its position as the official ice cream of the American Pregnancy Association. That, my friends, is the picture of opportunity!

Ideanomics (IDEX)

Last, but certainly not least, we have Ideanomics. The company, headquartered in China, is working to increase the adoption of electric vehicles, which hits the first requirement of a good penny stock on the head, the willingness to tackle a problem. 

At the moment, there’s a big push to go green around the world, and one of the biggest sources of carbon emissions is vehicles. As a result, the company has developed various electric vehicles, but not the types you’re expecting. 

The company isn’t interested in passenger vehicles, that segment of the market is already pretty saturated with Tesla, Nio, and several major vehicle manufacturers developing solutions. 

But that still leaves a large, commercial market untapped. 

As a result, the company brings commercial electric vehicles to market, setting the stage for a fundamental shift in the carbon emissions generated by these vehicles. Moreover, the company recently acquired a manufacturer of electric tractors, tapping into yet another major segment of the market. 

As the world continues to go green, and consumers look to work with companies that are on the go-green trend, Ideanomics seems to be in the right place at the right time to generate potentially significant gains ahead. 

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Final Thoughts

New opportunities pop up in the market every day, with many of those opportunities centering around penny stocks. The three stocks listed above are some of my favorites in the penny category and have the potential to yield significant returns for your portfolio. 

However, they’re not the only stocks out there, and as much as I hate to admit it, you shouldn’t blindly follow the opinions of any expert, including myself. As such, take the time to do your own research before diving into any investment opportunity. 

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CNA Finance is not a financial advisor or broker/dealer. This article is for entertainment and information purposes and not a solicitation to buy or sell securities. This article is the result of a monetary relationship between Nightfood and CNA Finance under which Nightfood pays CNA Finance a monthly retainer. The article above was written by Joshua Rodriguez and outlines his honest opinion of the company. Nightfood had no involvement in the development, or editing of this article. Trading in penny stocks can lead to potentially significant losses.