10 Top Tech Penny Stocks of April 2017

The following list shows the 10 top tech penny stocks of April 2017...

Tech Penny Stock Share Price Month-to-Date Gain
Superconductor Technologies Inc. (Nasdaq: SCON) $1.88 +48.2%
Adesto Technologies Corp. (Nasdaq: IOTS) $5.45 +33.1%
Highpower International Inc. (Nasdaq: HPJ) $5.22 +32.3%
Netlist Inc. (Nasdaq: NLST) $1.30 +31.3%
Ballard Power Systems Inc. (Nasdaq: BLDP) $2.88 +29.5%
Crossroads Systems Inc. (Nasdaq: CRDS) $3.66 +29%
VOXX International Corp. (Nasdaq: VOXX) $6.05 +19.8%
Avid Technology Inc. (Nasdaq: AVID) $5.55 +19.1%
Jive Software Inc. (Nasdaq: JIVE) $5.07 +18%
China Techfaith Wireless Comm. Tech. Ltd. (Nasdaq: CNTF) $2.34 +17.6%

The tech sector has seen a stunning rally this year, with the Nasdaq index crossing the 6,000-point mark for the first time ever today (Tuesday, April 25).

As you can see in the above chart, tech penny stocks have seen huge double-digit gains just this month alone. The top performer of April - Superconductor Technologies Inc. - is up 48.2% to $1.88 per share. That's more than four times the Nasdaq's 12% gain so far this year.

Free Report: The Best Stocks to Buy for Stunning Profits in 2017

top tech penny stocks of april 2017SCON stock's 48.2% rise this month shows how profitable most penny stocks are compared to the broader market. But we do not recommend buying any of the top tech penny stocks in the chart. Despite the fact these firms trade on the SEC-regulated Nasdaq exchange, you should always look at a stock's financials rather than just its big returns.

However, this financial research can be complicated. You have to go through hundreds of pages of 10-K reports and quarterly filings that are typically written in complex, technical language.

Here at Money Morning, we do that research for you...

Today, Money Morning Small-Cap Specialist Sid Riggs is recommending one of the best small-cap tech stocks to buy in 2017. Shares of this financial tech firm cost around $8 a share, and there's a scenario where shares could climb to just over $44 in the next year if the company matches 2017 earnings per share (EPS) estimates.

In other words, you could see a roughly 450% return on your investment.

Here's one of the best small-cap stocks to buy in 2017...

The Best Small-Cap Stock to Buy in the Tech Sector

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The best small-cap tech company to invest in is financial tech company Mitek Systems Inc. (Nasdaq: MITK).

Founded in 1983, this San Diego-based company markets and develops identity verification software. Its software services let users conduct sensitive financial transactions like check deposits and insurance payments over their mobile devices. Some of Mitek's services include Mobile Verify, used for verifying a driver's license, and Mobile Docs, used for scanning financial documents.

The best part about Mitek is its dominance in the mobile transaction market, which could grow as much as 716% in just four years. Statista reports the revenue for companies that make those banking transactions will be more than $865 billion by 2021.

Riggs says this shifting landscape for the banking industry will make Mitek one of the best small-cap stocks to buy in 2017.

"Trips to brick-and-mortar bank locations are going the way of the dodo bird," Riggs explained. "Millennials - and everyone else for that matter - are embracing mobile bank deposits whereby a user can simply take a photo of a check and upload it straight to the bank rather than having to trudge to the branch."

Mitek's earnings history shows the firm continues to capitalize on the mobile banking market. The company's net income has staged a massive turnaround in recent years, going from a $5.3 million loss in 2014 to a $1.9 million profit in 2016.

Even more attractive is Mitek's projected earnings growth. Analysts polled by Yahoo Finance expect the firm to post on average 2017 EPS of $0.28. That's more than quadruple the 2016 EPS of $0.06.

With that in mind, I've calculated a one-year price target of $44.52 for Mitek stock. That's a tremendous 456.5% return from the current price of $8 per share. This is based on Mitek's projected 2017 EPS of $0.28 and current price/earnings (P/E) ratio of 159.

With a strong foot in the mobile transaction sector and surging earnings, Mitek is one of the best small-cap tech stocks to invest in for stable returns in 2017.

Penny Stock Profits: This investing strategy has generated total peak gains of 17,781% over the last five years, targeting little-known penny stocks backed by America's richest investors. Read more...

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