The Top 5 Penny Stocks to Watch This Week

This week's top penny stocks to watch have seriously outperformed the broader markets in the last five trading sessions.

In the last month, the Dow Jones Industrial Average has fallen 3.1%. The S&P 500 is down 1.2%. Every stock on this list has jumped at least 15% in just the last week.

pennyWe've focused on penny stocks (defined as equities trading under $5) listed on major exchanges that have real products or services. While they don't trade for pennies, they still offer the potential for sizable gains in a short period of time.

Here a look at five penny stocks to watch that ended last week with exceptional gains...

This Week's Top 5 Penny Stocks to Watch

Penny Stocks to Watch No. 1: Hudson Global Inc. (Nasdaq: HSON) ended last week with a 35.9% gain. Shares rose another 1.3% to $3.03 Monday. Based in New York City, Hudson provides professional-level recruitment services for global corporations and governments. Shares climbed 11.1% last Wednesday on heavy volume absent any news. But the stock has been trending higher since late last month. Shares are up some 20% since July 24. Likely driving the stock are reports that more people are voluntarily switching jobs. The quit rate, which measures the number of quits as a percent of total employment, has ticked up to 2% from 1.7%, according to CNN Money.

Continue reading for four more of this week's top penny stocks to watch...

Penny Stocks to Watch No. 2: Coeur Mining Inc. (NYSE: CDE) closed out last week with a 35.7% gain. Shares added another 3.25% to $3.81 Monday. Headquartered in Chicago, CDE owns, operates, explores, and develops silver and gold mining properties globally. Mining stocks have gotten a boost from a rebound in gold prices amid China's yuan devaluation. Sterne Agee says the miners have further to rally. The firm noted mining management teams continue to show cost and capital successes, and goals show a more sustainable business model going forward. Select gold equities can outperform, the firm said in an investor note. It added, "We rate Coeur Mining 'Buy.'"

Penny Stocks to Watch No. 3: RELM Wireless Corp. (NYSEMKT: RWC) rose 23% last week and advanced another 1% to $3.98 Monday. Based in Florida, RWC designs, manufactures, and markets wireless communications products under the BK Radio and RELM brand names. On Aug. 4, RWC reported soft earnings and revenue compared to the same quarter a year ago. Still, the company said it remains "encouraged by the funnel of sales prospects for the coming months and quarters." In mid-June, RWC inked a deal with Alberta Health Services to provide portable and mobile radios and accessories. In late March, it announced an international order for roughly $2 million.

Penny Stocks to Watch No. 4: iBio Inc. (NYSEMKT: IBIO) shares climbed 21.7% last week and added an additional 4% to $0.82 Monday. Headquartered in Delaware, IBIO is a global biotechnology company focused on the commercialization of its proprietary plant-based protein technologies. On Aug. 11, the company received notice its application for a U.S. patent for an antibody targeting influenza will result in issuance of a new patent on Aug. 26. Shares are up 18.23% year to date.

Penny Stocks to Watch No. 5: Sandstorm Gold Ltd. (NYSEMKT: SAND) finished last week with a 15.5% gain. Shares tacked on another 6% intraday Monday. Based in Canada, SAND focuses on acquiring gold and other precious metal purchase agreements and royalties from mining companies. The stock rose along with gold's (up 1.7%) best week since mid-June. On July 30, the company reported record gold sales from its 14 producing royalty and stream assets. "With over $50 million in cash at quarter end, Sandstorm is in a position to be a buyer in what is a struggling gold market, and we believe that as we execute on the opportunities that are in front of us, we will build significant shareholder value," the company said.

Stay informed on what's going on in the markets by following us on Twitter @moneymorning.

Profit Alert: Since Money Morning Executive Editor Bill Patalon launched his Private Briefing program just a few short years ago, he's recommended 192 stocks that have either doubled or tripled in value. The service has completely revolutionized the way people invest. Keep reading to find out more about his extensive research and premium stock picks...