There's no time like the present to boost your portfolio for the year, and to help you find those triple-digit winners, we've got five of the top penny stocks to buy in January 2019…
Penny stocks have low barriers to entry since they are priced under $5 a share, often even under $1 a share. And the best ones have the potential to double or triple your investment in a matter of days.
We've gone through the more than 2,500 penny stocks today and picked out those with serious growth potential, thanks to the Money Morning Stock VQScore™ system.
Our VQScore system takes the 1,500 most profitable companies and ranks them by the potential for an upside breakout.
We used the system to find stocks trading below roughly $5 per share.
And we've found five of the best penny stocks on the market right now, including our first pick, which could soar 75% higher in 2019…
Penny Stocks to Buy in January, No. 5: Central European Media Enterprises Ltd.
Bermuda-based Central European Media Enterprises Ltd. (NASDAQ: CETV) is a Warner Media subsidiary, broadcasting in four major Eastern European markets.
CETV has an audience of more than 40 million viewers and listeners via 29 channels of television.
Warner Media has become ever more confident of CETV over the past 10 years, which has fueled much of the latter's growth.
Warner Media purchased a stake of 31% of CETV in 2009. Warner has gradually increased the stake to 75%, a clear sign of their confidence in CETV.
And that makes perfect sense.
CETV's gross profit has risen by 14%, and its income has climbed a whopping 121% over the last four years.
We don't see these robust growth patterns slowing in the future, either. The forecast is for 20% growth in paid TV revenue over the coming two years in the four major markets CETV serves.
Right now, the stock is selling at $2.75 a share. Wall Street analysts are forecasting a share price of $4.85 a share in 2019, a 76% gain in just 12 months.
Penny Stocks to Buy in January, No. 4: America First Multifamily Investors LP
America First Multifamily Investors LP (NASDAQ: ATAX) is a subsidiary of Burlington Capital Real Estate. It specializes in mortgage revenue bonds (MRB) that are exempt from federal tax.
Governments on both the state and local levels issue these bonds to spur affordable housing construction. America First uses these bonds to finance construction and collect tax-free interest. ATAX now has an 87-MRBs portfolio.
For the past 10 years, the United States has been in a housing boom of historic proportions. It's been a banner decade for ATAX.
The company's gross profits have risen 70% in the last five years. Its net income has increased by 79% in the same period.
And those impressive figures look to be sustainable in the future. Tradesmen International forecasts that housing construction will increase 4.5% in the next few years. Plus, it estimates industry profits of a whopping $1.2 trillion by 2020.
ATAX is well poised to benefit from this profit potential – and reward investors too.
At $5.60 per share and a perfect VQScore of 4, ATAX is a steal right now.
Penny Stocks to Buy in January, No. 3: Container Store Group Inc.
Container Store Group Inc. (NYSE: TCS) is a U.S.-based specialty retailer of organization and storage products.
Two years ago, the company rolled out an aggressive expansion campaign, opening 80 new chain stores across the United States.
As a result, gross income has climbed 7% in the past two years. TCS is now more profitable than ever before.
In two years, net income soared 277%, and costs have been maintained or reduced.
Even more impressively, TCS is paying down debt while it expands, a clear sign of financial strength. Its debt has dropped 10% in 2018 alone. Plus, debt has been slashed by approximately 30% in the past six years.
This should boost investor confidence in the company's overall strategy.
The stock currently sells for $4.40 a share. But our VQScore system shows us this stock is on the verge of breaking out.
And one of our last two penny stocks to buy could skyrocket 142% in 2019…
Penny Stocks to Buy in January, No. 2: BlackRock Capital Investment Corp.
BlackRock Capital Investment Corp. (NASDAQ: BKCC) is a U.S. investment firm offering financing for companies in the mid-cap range. It was formed in 2005.
BKCC manages approximately $1 billion in capital resources, usually making investments in the range between $10 million and $50 million.
Its crucial strength is its ability to utilize a range of investments that are usually off limits to traditional financial institutions and banks.
Because of them, BKCC can facilitate financial growth for mid-cap companies in ways that other financial companies can't.
One of the most impressive rewards to BKCC investors is its robust $0.72 dividend, which yields a stellar 12.52% annually. Dividends, particularly double-digit yields, are unusual for a penny stock.
At its current $5.68 price, Blackrock Capital is one of the best ways to profit from the financial sector, and much more affordable than Goldman Sachs Group Inc. (NYSE: GS), at $177.
Penny Stocks to Buy in January, No. 1: Himax Technologies Inc.
Taiwan-based Himax Technologies Inc. (NASDAQ: HIMX) is a leading semiconductor manufacturer founded in 2001.
Since then, HIMX has become a key supplier for some of the last two decades' most ambitious technology ventures.
Take the OLPC XO laptop. It's an affordably priced but very powerful laptop intended to foster education in developing countries.
But HIMX's central profits have come from its partnerships with global innovators in technology.
Five years ago, the company joined in partnership with Alphabet Inc. (NASDAQ: GOOGL) in the production of the liquid crystal that Google Glass uses in its silicon chips.
As a result, GOOGL took a 6.3% stake in a Himax display. This augurs well for opportunities with GOOGL in the future – and Alphabet is a leading innovator.
Himax is perfectly situated to profit from the high demand for semiconductors driven by the climbing popularity of e-sports. This is fueling a forecast 7% rise in sales for semiconductors alone in 2018.
Wall Street expects a target price for HIMX of $8 per share. That's a whopping 142% increase from the current $3.31 price, a return any investor would be happy to have.