How the Top Penny Stock of September 2017 Has Surged 117.2% in 1 Week

The top penny stock of September 2017 so far is biotech firm Oncobiologics Inc. (Nasdaq: ONS). Shares are up from $0.87 at the close of Aug. 31 to $1.89 today (Sept. 11) - a 117.2% gain in just six sessions.

Here are the rest of the top 10 penny stocks of the month by performance...

Penny Stock Current Share Price September 2017 Gain (as of Sept. 11)
Oncobiologics Inc. (Nasdaq: ONS) $1.89 +117.2%
FalconStor Software Inc. (Nasdaq: FALC) $0.74 +105.6%
ZAIS Group Holdings Inc. (Nasdaq: ZAIS) $3.51 +89.5%
Celsius Holdings Inc. (Nasdaq: CELH) $6.55 +66.2%
SAExploration Holdings Inc. (Nasdaq: SAEX) $2.42 +54.7%
NantHealth Inc. (Nasdaq: NH) $4.11 +48.4%
Eleven Biotherapeutics Inc. (Nasdaq: EBIO) $1.60 +48.1%
PAVmed Inc. (Nasdaq: PAVM) $6.13 +42.5%
Neovasc Inc. (Nasdaq: NVCN) $1.12 +41.8%
Marin Software Inc. (NYSE: MRIN) $1.60 +39.1%

Oncobiologics produces biosimilars - which are drugs with active properties similar to FDA-approved drugs. Biosimilars contain ingredients already licensed by the FDA, meaning the FDA often approves biosimilars quicker than drugs with new, non-approved ingredients.

Oncobiologics' main product is a Humira biosimilar called ONS-3010. Humira treats arthritis and Crohn's disease, among several other illnesses.

Most of ONS stock's gains came last Friday, Sept. 8, when shares rocketed 124%. That's when the company agreed to sell $25 million worth of preferred stock to private investment firm GMS Tenshi Holdings Ltd. The massive purchase naturally spiked ONS stock to a four-month high of $2.02 on Friday.

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Despite ONS' 117.2% return in just one week, we're not recommending it as a penny stock to buy today. Our Money Morning experts are more interested in finding you stocks to buy that have gains ahead of them rather than behind them.

top penny stock of September 2017

That's where Money Morning Small-Cap Specialist Sid Riggs comes in. He's recognized for giving our readers small-cap winners. His pick from December 2013 - Neurocrine Biosciences Inc. (Nasdaq: NBIX) - has handed readers a 520.2% return.

Today, Sid recommends a biotech company that has beaten earnings estimates for four straight quarters by an average of 54.7%. It's also the first company to sell a medical test that's the first of its kind sold over the counter. This gives the company a market edge over firms with a similar product that requires a doctor's prescription.

According to Sid, his recommendation's reputation for consistently surpassing estimates means Wall Street banks underestimate it. So this is the perfect time to buy shares before the big banks catch on.

Here's the best small-cap stock to buy in the biotech sector...

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

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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 remove 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.

The stock has already blown through Thomson Reuters analysts' previous one-year price target of $21, which they projected back in July. OSUR currently trades 5.5% above that target at $22.15 today.

As you can see, the company keeps growing while analysts keep underrating it, and that means it's a value buy right now...

Since Q3 2016, OraSure has smashed earnings estimates by an average of 54.78%. During the last quarter of 2016, the firm posted $0.13 earnings per share, exceeding the $0.06 analyst estimate by 116.7%. It's kept that streak going ever since, beating its most recent Q3 2017 estimate by 28.6%.

"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 strong track record of FDA approval and a streak of smashing analyst expectations, OSUR is one of the best small-cap stocks to buy in 2017.

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