One of the best penny stocks has been called the "Tesla of Penny Stocks." Ideanomics Inc. (IDEX) popped 438% since May 29. That made IDEX one of the top gainers in May. But, a money-doubling trend says another stock could be our best penny stock to buy now.

Penny stock investing is a speculative process where you look at stocks trading under $5 a share. Because of their low share price, penny stocks have the potential to make huge percentage moves when a catalyst hits. That's what penny stock investors often look for: a big, short-term profit.

And they got exactly that from IDEX last month. The company had opened its Mobile Energy Global (MEG) electric vehicle (EV) facility in Qingdao, China. The center reported selling 2,139 EVs in May.

This pumped the stock, also spelling promise for the future of the Ideanomics enterprise. But, if you're a penny stock investor looking for maximum gain in the shortest amount of time, we have better opportunity for you in the short run. First, here's why IDEX is making so much noise right now.

Why IDEX Might Be a Top Penny Stock

IDEX is a special case when you compare it to other top penny stocks on the market. Often, you'll find penny stock prices soaring on some pretty uninteresting bits of news. For example, Senmiao Technology Ltd. (AIHS) soared 268% last year after a major university adopted its technology.

What makes Ideanomics different is that it's at the center of an important technological revolution taking place over the next few years. Electric vehicles are taking the world by storm, and Ideanomics is well-positioned to benefit from the surge. By 2030, it is estimated we are supposed to see $26.9 million electric vehicles sold. That would be a 715% spike from 3.3 million in 2019.

Big-name auto manufacturers are staying ahead of the curve with their production lines. Fiat Chrysler Automobiles NV (FCAU) expects to have an electric option for all its Jeep models by 2022, and Ford Motor Co. (F) could have 16 fully electric vehicles by 2022.

All of this points to a growing EV industry and the potential that cars may be almost exclusively EVs in the long run. IDEX is capitalizing on this trend in a unique way. It is a New York City-based financial technology (FinTech) company. Yet, its primary function is broader than ushering in new FinTech products. It is also "facilitating the adoption of commercial electric vehicles."

It's doing this through its electric vehicle division, Mobile Energy Global (MEG). The division provides solutions for financing and charging EVs. It's succeeded doing this in Qingdao and Beijing, China, where tax incentives for EV-driving are much greater. Lately, it's sold EV taxis and buses in various Chinese provinces.

When electric vehicles grow in popularity in the United States, IDEX will have an opportunity to do the same thing it's doing in China. This could be great for buy-and-hold investors. But as for any big short-term gains, IDEX's giant bounce has already passed.

That doesn't mean, however, that you should avoid a cheap stock with great potential. But if penny stock investors are looking for big upside over the next few months, they should buy this other penny stock instead. This penny stock is also capitalizing on a massive trend. The difference is that it gets a catalyst every week as its industry builds steam. Here is our top penny stock to watch right now.

The Best Penny Stock to Buy Today

We're talking about the CBD industry. This market is supposed to grow to $2 billion by the end of the year. It was about $1 billion last year, so that's a double gain. By 2024, analysts expect it to hit $20 billion. Our favorite CBD penny stock right now is HEXO Corp. (HEXO).

This is not your average CBD company. The stock has been expanding its presence since 2013. It's associated with a wave of cannabis leaders arising around that time, like Aurora Cannabis Inc. (ACB), Canopy Growth Corp. (CGC) and Cronos Group Inc. (CRON). The company is also partnered with Molson Coors Beverage Co. (TAP) to sell cannabis-infused beverages.

The last time we covered HEXO, it had fallen 70%, from $1.64 to $0.43 through the coronavirus crash. Recently however, it's back up at $0.75. As we predicted, it's nearly up to that $1 threshold required for NYSE stocks with that 74% growth.

HEXO reported a 17% increase in net revenue for Q2 2020, from $14.5 to $17 million. Adult-use sales went up by 57% from Q1. But with its name-brand recognition and strategic partnerships, this stock has much further to go. Analysts give it a price target of $1.29, which is about 72% for the year. But you shouldn't be surprised if this stock doubles or triples within the year as CBD and cannabis products increase in popularity.

Action to Take: Ideanomics Inc. was one of the biggest gainers for June, and it could be a very successful company down the road. But penny stock investors looking for profits weeks or months down the line should check out HEXO Corp., instead. It's poised to be one of the fastest growers in the CBD industry over the next few months.

You Could See Gains of up to 1,000% with the Three Hottest Trends in Cannabis

Four of the brightest minds in the cannabis industry recently gathered at the 2020 American Cannabis Summit – and they revealed what could be the three hottest trends in cannabis this year. We're talking about plays with the potential for extremely large gains.

But you're going to want to jump on these trends before federal legalization – because once the institutional money starts pouring in, the prices could shoot through the roof.