The 3 Top Penny Stocks To Buy And Hold In April 2020

Markets have absorbed the news that U.S. states have extended their social distancing policies and shutdown of nonessential businesses. Unemployment could sour to levels not seen since the Great Depression. And Second Quarter GDP may plunge by as much as 40%, according to analysts at JPMorgan Chase.

However, the U.S. markets continue to hold up under this pressure. At times like this, it's hard to remember that the market (aided by the U.S. Federal Reserve) is not the economy, and the economy is not the market. Still, some investors may be nervous about buying and holding stocks right now – particularly expensive ones trading at $100, $500, or even $2,000 or more.

That's why penny stocks are so popular, especially now. Because they trade under $5 per share, we can tap into inexpensive stocks that have high profit potential due to coronavirus, and ride them out until the breakout ends. Of course, investing in penny stocks is more speculative. So you should only invest money you can afford to lose when it comes to penny stock investing.

Today, we're looking at three of the top penny stocks to buy in April.

Top Penny Stocks to Buy Now, No. 3: B2Gold

The ongoing surge in demand for physical gold has created a massive dislocation between the futures and the spot markets. Gold production stocks have been ticking higher, and the runs will continue in the future.

The recent efforts by the U.S. Federal Reserve and Congress have showered the U.S. economy with more cash and more liquidity. And it's likely to be even higher in the future as the COVID-19 crisis continues.

Gold prices are heading higher as the flight to safety continues in a zero-interest rate environment. This puts senior gold production in focus and creates a terrific opportunity for B2Gold Corp. (BTG). It's a Canadian public mining firm based in Vancouver, British Columbia.

BTG owns mines in Namibia, the Philippines, Colombia, Burkina Faso, and Mali. The company expects forecasts for consolidated gold production of between 1,000,000 and 1,055,000 ounces this year.

Shares of BTG currently trade at $4.49 per share. But we see upside with rising gold prices at $5.75 per share. That represents potential upside of 28% from today's price.

Top Penny Stocks to Buy Now, No. 2: Orion Energy Systems

Orion Energy Systems Inc. (OESX) is a producer of LED lighting and intelligent controls that centers on efficient energy systems. The firm counts nearly 40% of the Fortune 500 as customers in the space.

Looking forward, many analysts anticipate that the United States will engage in a large amount of additional stimulus in the years ahead. This will be positive for companies specializing in green technology and energy efficiency.

We anticipate that Orion Energy Systems will also benefit from the flood of manufacturing prepared to move back to North America, due to concerns about the reliance on Chinese labor and production for vital products like pharmaceuticals and safety gear.

Shares of Orion Energy Systems currently trade at $4.08 per share. We project that prices will rebound to $5.50 over the next 12 months; a figure that represents upside of 34%.

The Top Penny Stock to Buy in April 2020

Mistras Group Inc. (MG) is a provider of tech-enabled asset protection solutions that help measure the structural integrity of energy and industrial and public infrastructure.

Congress is currently debating a massive stimulus plan to target U.S. infrastructure. We're talking about upwards of $2 trillion. This makes companies in the construction space attractive targets in the weeks and months ahead. If we are on the verge of rebuilding the national grid, roads and bridges, and other critical infrastructure, inspection services will be critical.

It appears that company executives have been busy snapping up shares in recent days.

Directors and officers have been purchasing thousands of shares and appear to be betting on both a recovery in the stock, and a huge boost for their business. I've seen a lot of activity – and this is very similar to what we saw just before the bailout – only in a much different sector.

Mistas Group currently trades at $3.31 per share. We anticipate the stock could easily hit $5.50 per share once we see infrastructure spending increase. That price target represents a possible upside of 66% from current levels.

Disclosure: None.

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