These are the 10 best penny stock gainers of June 2017 so far, ranked in order of biggest to smallest return. Plus, we'll give you our top pick for 2017 after the chart...
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The top penny stock in June 2017 is Delcath Systems Inc., which has soared a massive 206.1% over just eight trading sessions so far this month. The DCTH stock price popped 200% from $0.02 to $0.06 from June 8 to 9 after the liver cancer biotech announced it would release phase 2 trial data on its chemotherapy drug Melphalan sometime this month. The huge surge in share price last week indicates investors believe the recent announcement will be very positive for the company moving forward.
DCTH's stunning 206.1% return clearly demonstrates the explosive profits penny stocks can offer. Because they can cost literally just a few pennies, they can potentially hand you a triple-digit return in just a couple of days.
But we still don't recommend buying any of the stocks listed above. These companies have already handed investors a big profit, which means they might not give you the same profit if you buy in now at a high price.
Our Money Morning experts only recommend investing in firms that are financially healthy and have strong earnings potential. Both of these can be learned by digging into a company's SEC filings to see if its profits are increasing rather than decreasing.
Today, Money Morning Small-Cap Specialist Sid Riggs has done the research for you. Although many of his small-cap recommendations cost more than the $5 penny stock cutoff, these companies boast bigger market caps between $300 million and $2 billion. That means these businesses attract more investors than penny stocks because they're much more financially stable.
And Sid just found another one of the best small-cap stocks to invest in this year. It's a small biotech company that has consistently won FDA approval for its drugs, including a new product that will be available over the counter for the first time in its industry. We like that track record of innovation, and we think it's going to fuel this stock to reach new heights.
This company has also crushed earnings estimates over the last four quarters by an average of 57.6%. Sid says that's a sign Wall Street analysts are underestimating the company, which makes it a great buying opportunity right now.
Here's Sid's pick for the best small-cap company to invest in this year...
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The pick is OraSure Technologies Inc. (Nasdaq: OSUR), which develops medical devices that detect conditions like HCV, HIV, and influenza. The company also sells drug-screening products that can detect narcotics or alcohol in a person's system.
But OraSure's most popular products include its line of portable cryosurgical devices. These let people apply intense cold to lesions, warts, and other spots on the skin to destroy the unwanted or infected tissue.
The company has seen a number of its products quickly receive FDA approval in recent years. In 2010 and 2011, the FDA approved OraSure's blood and fingerstick HCV tests, respectively. And in 2012, the company received FDA approval for its in-home HIV test.
According to the OraSure website, it's the first oral fluid over-the-counter HIV test approved in the United States. That ability to stay ahead of competitors will continue to be a long-term boost to OraSure stock.
In fact, its ability to outperform the market is already showing this year. The OSUR stock price has soared 71.5% so far in 2017, beating the Dow Jones' 7.3% gain and the Nasdaq Biotechnology Index's 10.9% return. And Sid expects those gains to keep coming as the firm continues to stay ahead of the competition.
Thomson Reuters analysts conservatively say shares of OSUR could rise 5.8% from the current $15.12 price to $16 by next June. However, at the rate that the company is smashing analyst expectations, the stock seems like it will easily crush that price target well before next year...
Since Q2 2016, OraSure has smashed earnings estimates by an average of 57.6%. During the last quarter of 2016, the firm posted $0.13 per share, exceeding the $0.05 analyst estimate by 160%. It kept that streak going in Q1 2017, when it earned $0.21 per share and beat the $0.18 projection.
"That tells me analysts have almost perennially underestimated the company's potential - something they won't do for long," Sid said. "Which is why you don't want to delay for a New York minute if you're as interested as I am."
With a string of quick FDA approvals and unbelievable earnings, OSUR is the best small-cap stock to buy in the biotech sector this year.
Up Next: Two More Small-Cap Stocks to Consider Adding to Your Portfolio
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