5 Top Penny Stocks to Watch This Week with Gains as Much as 97%

While most global stock markets tumbled this week after the U.S. Federal Reserve decided not to raise short-term interest rates, the top penny stocks this week posted double-digit gains.

top penny stocksThey also come from a wide range of industries, including biotechnology, manufacturing, and the medical device market.

Penny stocks are defined as stocks trading under $5, but at Money Morning we only focus on penny stocks listed on major exchanges like the NYSE and Nasdaq. That's because they come with much less risk than penny stocks that trade Over-the-Counter or on the Pink Sheets.

But there are still plenty of benefits to these top penny stocks, including low prices and the potential for big gains over a short period of time.

Here's a look at this week's five top penny stocks to watch...

Top Penny Stocks to Watch No. 1: Can-Fite Biopharma Ltd. (NYSEMKT ADR: CANF)

Can-Fite Biopharma Ltd. (NYSEMKT ADR: CANF) climbed 97% on Friday alone. Opening at $4.47, shares surged to $6.50 in early afternoon trading. CANF develops new treatments for autoimmune diseases and different types of cancer. Its products include treatments for psoriasis, rheumatoid arthritis, glaucoma, and liver disease. Late Thursday, the FDA granted CANF's drug candidate CF102 fast track designation as a second-line treatment for hepatocellular carcinoma (HCC), the most common form of liver cancer. CF102 had already received the FDA's Orphan Drug designation, which makes it a top penny stock to watch moving forward.

Penny Stock to Watch No. 2: Natuzzi SpA (NYSE ADR: NTZ)

Natuzzi SpA (NYSE ADR: NTZ) shares surged 32.94% to $2.26 Friday. The movement may be in anticipation of the company's upcoming financial release. On Sept. 25, NTZ will post Q2 and 2015 first-half results. When the company reported Q1 results in May, it showed a significant improvement in revenue and margin, confirming the positive trend of the previous quarters. Net sales in Q1 came in at 122.6 million euro (roughly $140 million), up 24.6% year over year. Worldwide, NTZ registered revenue growth in all its main markets. Directly owned stores posted a 26.9% growth in Q1 as well. Shares are up 32.97% year to date.

Keep reading for three more top penny stocks to watch this week...

Penny Stock to Watch No. 3: Medigus Ltd. (Nasdaq: MDGS)

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Medigus Ltd. (Nasdaq: MDGS) shares jumped more than 30% Friday, rising from $3.52 to a 52-week high of $5.17. MDGS is a medical device company that designs, develops, and sells minimally invasive endosurgical tools and imaging solutions. Earlier this month, MDGS announced the addition of a new product to its micro ScoutCam portfolio of products. The micro ScoutCam 6.5 Lum is an innovative video camera that provides intense illumination in a small size. This makes it ideal for industrial companies looking to obtain quality images from dark and narrow spaces. In addition, the camera's mechanical rigidity enables it to endure long-term implementation in low- or no-maintenance environments, including outer space.

Penny Stocks to Watch No. 4: Empire Resources Inc. (Nasdaq: ERS)

Empire Resources Inc. (Nasdaq: ERS) shares rose nearly 20% to $4 intraday Friday. The company is a distributor of semi-finished aluminum and steel products. Shares were soaring Friday after news that its owners are exploring a purchase of the remaining shares of ERS they don't own. The owners currently own roughly 46% of the company. Insider buying is one of the strongest bullish signals a stock can receive, because it means the owners believe the share price will increase.

Penny Stock to Watch No. 5 Pro-Dex Inc. (Nasdaq: PDEX)

Pro-Dex Inc. (Nasdaq: PDEX) shares popped more than 15% to $3.07 Friday. PDEX designs, produces, and markets powered surgical and dental instruments and other motion control products for medical, factory automation, and scientific research industries worldwide. After Thursday's close, PDEX reported fiscal Q4 earnings per share (EPS) of $0.02, up from $0.01 year ago. Revenue rose 27% to $4.1 million. At the end of June, the company had a backlog of $10.6 million compared with a backlog of $2.8 million year ago.

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