TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Stocks are hovering at all-time-highs to close the year. And one of our top penny stocks to watch in 2020 is riding the tide.

Because of its low share price, penny stocks can generate huge percentage returns in short amounts of time. And this penny stock is poised to soar 153%.

But not all penny stocks are the same, and there are thousands to choose from. This could make it a challenge to find the best penny stocks trading on major exchanges.

We're going to show you the stock in just a moment. In fact, we're going to show you three of the best penny stocks in 2020 for market-beating returns.

Top Penny Stocks to Watch in 2020, No. 3: CEMIG Inc.

CEMIG Inc. (NYSE: CIG) is a diversified utilities company located in Brazil. It was founded in 1952 and currently employs more than 5,600 full-time workers.

Through its subsidiaries, the company focuses on generating, transmitting, distributing, and selling electricity throughout Brazil. At of the end of 2018, it operated 80 thermoelectric, hydroelectric, and wind plants with a total capacity of 6,000 MW, 333,391 km in distribution lines, and 4,134 km of transmission lines.

The company is also involved in acquiring, transporting, and distributing gas and derivatives; trade and sale of electricity; providing telecommunications services; and operating solar energy plants.

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CEMIG is one of Brazil's largest power distributors and generators. It is the fourth-largest electric company in the country and accounts for 12% of the total energy output for Brazil. It serves approximately 18 million customers across 774 municipalities, making it ideally positioned to capitalize on the country's recent spike in energy consumption.

British Petroleum Plc. (NYSE: BP) recently reported that the average growth of energy consumption in Brazil is close to twice as high as other developed nations.

Brazil is currently the second-largest consumer of biofuels, which are fuels made from organic waste material.

The profit potential of CEMIG has gone sky-high thanks to this country's rapidly expanding energy consumption.

Its profits have jumped 72% just since 2015, and this is a growth rate that shows no signs of slowing down.

The stock is currently trading at $3.33 per share, but analysts have given this one a price target of $4.20. This would give today's investor an upside of 26%.

That's a solid gain, and with a perfect 4.9 VQScore, it might just be a conservative estimate.

Top Penny Stocks to Watch in 2020, No. 2: Intrepid Potash Inc.

Intrepid Potash Inc. (NYSE: IPI) is a Denver-based agricultural inputs company that produces and sells potash and langbeinite products internationally.

The company was founded in 2000 and has three segments: potash, trio, and oilfield solutions.

Farmers depend on its potash segment for elements of their fertilizers and animal feeds. The trio segment delivers another kind of fertilizer, and the oilfield solutions segment delivers water to well sites for gas and oil companies.

Intrepid is this nation's largest producer of potassium chloride, and use of the product has jumped 15% in the United States over the past four years. Since 2015, the company's profits have gone up a staggering 732%.

In Q3 2019, the company reported an increase of year-over-year profits of $5.3 million and a jump in revenue of $2.5 million.

Part of this increase is due to lower operating costs coupled with the firm's new environmentally friendly and cost-efficient processes.

IPI stock is currently trading at $2.53 per share, but analysts predict this will go as high as $5 over the next year – an upside of 97%.

That's a fantastic triple-digit gain, but our top penny stock pick has 153% upside.

The Top Penny Stock to Watch in 2020

Qudian Inc. (NYSE: QD) is a China-based provider of consumer credit services.

The company was founded in 2014, and it issues small loans to consumers in China for discretionary spending.

Forbes recently reported that China now has over 500 million consumers in its middle class, which is more than double the entire population of the United States.

Analysts predict this figure is going to skyrocket to more than 600 million by 2022.

Those consumers are driving a strong consumer market in the country. In just 2018, the retail industry in China was valued at a staggering $6 trillion. From 2010, that's a 400% increase. And from 2000, that's a 900% increase.

Qudian has established a robust customer base because it has access to the largest consumer market in the world.

During its IPO on the New York Stock Exchange in 2017, the company was able to raise $900 million.

QD stock is trading at $4.70 per share, and analysts have given this stock a price target of $11.91. Today's investor could lock in potential gains of 153%.