Penny stocks are those priced under $5, and they can often be very risky plays, but some investors love them. The chance to turn a minimal investment into a major return can often be too good to resist; however, as they’re usually made up of fallen angel companies’ stocks that are yet to fully reach their potential, the high level of risk can send investors scurrying. We’ve been keeping an eye on the penny stock market to bring you the best picks this week. Let’s take a look.
JC Penney (NYSE:JCP)
A few months ago, investors wouldn’t look twice at this penny stock as the troubled clothing retailer was faced with delisting from the New York Stock Exchange for trading under $1 for 30 consecutive days. Since then, JC Penney has implemented a turnaround strategy that is starting to return some impressive results. JCP stock has gained over 40% in the last two months off the back of store revamps, which have seen bars, cafes, and even a fitness studio incorporated into the shopping experience.
While the most recent quarterly results show that there is definitely still work to do in order to sustain growth, there’s no doubt that the recent rally in this penny stock is a potential sign of more gains ahead. JCP stock is currently trading at $1.19.
Endeavour Silver Corporation (TSX:EDR) (NYSE:EXK)
Endeavour Silver is a Vancouver-based mid-tier precious metals mining company. Mining firms are always reliable bets as far as penny stocks go, and with silver prices forecast to stay bullish in 2020, there’s all the more reason for optimism with this stock. Goldman Sachs forecasts silver prices to push $18 an ounce, which is a gain of 6.5% on current prices. Endeavour’s flagship mine in Guanacevi, Mexico yielded 2 million ounces last year, and the ten-by-five-kilometer vein shows no signs of drying up soon. EDR stock is currently trading for $2.82, up nearly 7%.
Are there any other penny stocks on your radar?
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