The Top Penny Stock to Buy During the Coronavirus Crash

The scariest thing about this coronavirus crash is the unknown. You don’t know when the outbreak will end. You don’t know how long it will hurt the markets.

The CBOE Volatility Index (VIX) is above 60. Nowhere in 2019 was it above 30. Fear is off the charts.

But we’re here to make the unknown a little less scary. Maybe we can even carve out some knowns – after all, there are known profit opportunities in highly volatile markets.

One of those, if your risk tolerance allows for it, is penny stocks. If you’re even a little optimistic about a positive spike in the market over the next few weeks, this could double your investment or more.

You have all the reason to be optimistic about one specific industry: cannabis.

Cannabis stocks have been going through all the growing pains of a budding sector, so you might have written them off. The ETFMG Alternative Harvest ETF (NYSEArca: MJ) has fallen over 75% in the last year.

This has been a product of cannabis companies finding their place in the markets with a trade war in the backdrop. And now, we have a global pandemic.

But I wouldn’t count out the cannabis industry. In fact, the state of Illinois isn’t doing it, even in the face of a global pandemic. On March 21 (Saturday), it deemed the cannabis industry “essential” in its lockdown orders, meaning dispensaries would remain open.

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This is a good sign for cannabis, knowing that its foothold is strong enough to remain even in these critical times. It reinforces the growth targets from analysts: $13 billion to $66 billion by 2025. Make no mistake, coronavirus or not, this is still a realistic projection.

That’s why this cannabis penny stock is one of the many considered “down, but not out.” It’s trading for mere pennies right now, meaning its price could see huge percentage shifts if the market has a good week.

This is the marijuana penny stock to buy while volatility reigns in the market…

The Best Cannabis Penny Stock Right Now

The hype around cannabis stocks has been threatened by coronavirus fears. This might end up weeding some cannabis startups from the pack.

But cbdMD Inc. (NYSE: YCBD) has had a decent head start in sorting itself out. The company can rest in the fact that it’s become the closest thing to a “household name” in the cannabis industry nationwide.

A variety of products such as gummies, bath bombs, creams capsules, and tinctures has helped cbdMD penetrate a variety of markets. The company even has partnerships with several professional athletes promoting CBD for recovery purposes – Olympian Kerri Walsh Jennings, former NFL receiver Steve Smith, and Golfer Bubba Watso, to name a few.

While cbdMD is not yet profitable, they’re cutting costs fast. They lost $2.54 per share in 2019, but analysts forecast a loss of only $0.43 per share in 2020. By 2021, the company plans to have a $0.33 profit per share.

Shares currently trade for Just $0.66. It’s down with the broader market right now. But as the viral outbreak clears up, the lowest analyst growth target is $1.20. That’s an 81% target.

But you may not even have to wait. People might be even more inclined to buy CBD products to calm anxiety while their cities are locked down.

So don’t count this one out. The average analyst gives it a price target of $5.07, which is a profit of more than 600%.

Action to Take: While the market spirals out of fear, it’s creating the buying opportunity of a lifetime for some stocks. This penny stock is not only undervalued with the broader market, it’s also a potential gainer from 400% growth in the cannabis industry over the next five years. CbdMD is going to be a big part of that. It’s already a household name, and you can pick it up for just $0.66 right now for 600% profit potential.

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