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A penny stock is one that trades for less than $5 per share. In other words, these penny stocks are cheap compared to stocks of companies like Amazon (NASDAQ:AMZN) and Tesla (NASDAQ:TSLA). For the cost of one AMZN share, an investor could buy hundreds or thousands of shares in a penny stock. But there’s more to their appeal than their cheap prices. Many investors hope to hit it big by investing in the best penny stocks — companies that will turn into Amazon or Tesla.
Indeed, Amazon started its life as a publicly traded company in the ranks of penny stocks. You could buy shares in May 1997 for $1.73 each. But since then, they’ve been on an incredible upward trajectory.
But while the best penny stocks offer upside potential, many are trading for less than $5 for a reason. Some represent once-great companies that have fallen on hard times, like Ford (NYSE:F). Others like Hertz (NYSE:HTZ) are on life support and at risk of delisting. The bottom line is that penny stocks offer big rewards, but they come with big risks.
That means before investing in penny stocks, you should do some research and know what you’re getting into. With that in mind, here are seven of the best penny stocks to buy in 2020:
Best Penny Stocks: ElectraMeccanica Vehicles (SOLO)
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Electric vehicle stocks are hot. Investors only need to look at the continued run of Tesla or the mania surrounding the recent initial public offering of Nikola Motors (NASDAQ:NKLA) to understand that electric vehicle makers are leading the automotive industry today.
And ElectraMeccanica Vehicles offers huge potential in the space. SOLO stock has recovered from its March lows and risen from 92 cents a share to nearly $2 in recent weeks. The recovery came after the Canadian company reported that its sales in the first quarter rose to 116,831 CAD from 101,404 CAD.
Shareholders also like that ElectraMeccanica Vehicles is planning to build a U.S. assembly plant and technical center. The company recently announced that it has narrowed its list for its new U.S. home to Arizona, Colorado, Florida, North Carolina and Tennessee. It also announced the accelerated development of its first all electric micro-car, and that it’s looking at opening retail dealerships in Arizona and Oregon.
Could ElectraMeccanica Vehicles be the next Tesla? Time will tell, but at $1.73 per share, SOLO stock may be worth the risk.
Editor's Note: Click here to keep reading.
There’s a lot of hype surrounding 5G these days…
And for good reason. It’s a breakthrough technology that’s going to change the world and make early investors a fortune.
But investing legend Louis Navellier says there’s only one 5G stock you should be paying attention to right now.
This is coming from the analyst who…
- Found Microsoft when it was trading for 39 cents.
- Cisco at 50 cents.
- Qualcomm at $2.45.
- Adobe at $1.91.
- Apple when the legendary software company was trading for $1.38.
- Amazon when it was just a $46 stock (today it’s over $1,885).
And MarketWatch said he was “the advisor who recommended Google before anyone else.”
Now Louis’s pounding the table on a 5G stock he recently uncovered.
He’s put together a presentation with the full details which you can view right here.
