Best Penny Stocks US 2020: Unveiling the Hidden Gems

The year 2020 was a year of unprecedented challenges, but it also brought about opportunities for savvy investors. One of the most sought-after avenues for investors seeking high returns on a small investment was penny stocks. In this article, we delve into the best penny stocks of the year 2020 in the United States, showcasing the hidden gems that made waves in the market.

Understanding Penny Stocks

Before we dive into the details, it's essential to understand what penny stocks are. Penny stocks are shares of small-cap companies that trade for less than $5 per share. They are often overlooked by many investors due to their perceived risk, but they can offer massive potential for growth.

The Best Penny Stocks of 2020

1. BioNTech SE (BNTX) BioNTech SE, a German biotechnology company, made headlines in 2020 as it collaborated with Pfizer to develop the COVID-19 vaccine. As the pandemic raged, the demand for their vaccine skyrocketed, propelling their stock to new heights.

2. Novavax Inc. (NVAX) Another COVID-19 vaccine hopeful, Novavax, experienced a surge in its stock price after announcing positive results from its vaccine trials. Investors saw the potential for significant growth in the company, making it one of the best penny stocks of 2020.

3. Zoom Video Communications, Inc. (ZM) With the rise of remote work and virtual meetings, Zoom Video Communications experienced a massive increase in demand for its services. The company's stock price soared, making it a top-performing penny stock in 2020.

4. iRobot Corp. (IRBT)

iRobot, known for its popular Roomba vacuum cleaner, saw a surge in demand for its products as people spent more time at home. The company's stock price skyrocketed, making it a standout penny stock in 2020.

5. Shopify Inc. (SHOP) Shopify, a cloud-based e-commerce platform, experienced explosive growth as more businesses shifted to online sales during the pandemic. The company's stock price soared, solidifying its position as one of the best penny stocks of the year.

The Key Takeaways

When it comes to investing in penny stocks, it's essential to do thorough research and understand the risks involved. The best penny stocks of 2020 were those that capitalized on the unprecedented events of the year, such as the COVID-19 pandemic.

Final Thoughts

Investing in penny stocks can be a thrilling and potentially lucrative endeavor, but it requires careful research and a willingness to take on higher risks. By keeping an eye on emerging trends and doing your homework, you can identify hidden gems like the ones we've discussed in this article. Remember, the key to success in the world of penny stocks is to stay informed and stay focused on your investment goals.

new york stock exchange