10 Top Penny Stocks to Watch in September 2017

The following list ranks the top penny stocks of September 2017 so far, which we'll be watching the rest of the month. Every penny stock on the list below is up at least 64% in just nine trading sessions.

After the list, you'll receive Money Morning Small-Cap Specialist Sid Riggs' newest small-cap pick, which could rally thanks to the "cashless banking" industry's 716% growth through 2021...

Top Penny Stock Current Share Price September 2017 Return (as of Sept. 14)
Oncobiologics Inc.

(Nasdaq: ONS)

$1.76 +102.7%
ZAIS Group Holdings Inc. (Nasdaq: ZAIS) $3.72 +101.1%
Net Element Intl Inc.    (Nasdaq: NETE) $0.53 +91.3%
Atossa Genetics Inc.

(Nasdaq: ATOS)

$0.77 +81.1%
PAVmed Inc.

(Nasdaq: PAVM)

$7.72 +80.1%
SAExploration Holdings Inc. (Nasdaq: SAEX) $2.82 +77.4%
Akari Therapeutics Plc.  (Nasdaq ADR: AKTX) $6.31 +76.9%
Aldeyra Therapeutics Inc. (Nasdaq: ALDX) $7.35 +70.7%
NantHealth Inc.

(Nasdaq: NH)

$4.63 +67.5%
Celsius Holdings Inc.    (Nasdaq: CELH) $6.41 +64%

The top penny stock of September by performance is Oncobiologics, a pharma company that produces biosimilars. These are treatments that contain active ingredients similar to FDA-approved treatments. The FDA usually approves biosimilars quicker than newer drugs, since biosimilars contain preapproved ingredients.

Oncobiologics' lead product is ONS-3010 - a Humira biosimilar that mainly treats Crohn's disease and arthritis.

ONS stock surged 124% on Sept. 8 alone, when private investment firm GMS Tenshi Holdings Ltd. announced it would buy $25 million worth of ONS preferred stock. The purchase pushed the ONS stock price to the Sept. 8 close of $2.02 - the highest closing price since May 12.

Oncobiologics will be the top penny stock to watch the rest of September. Despite gaining 102.7% so far this month, shares are down 12.9% in just four days following the Sept. 8 high. That indicates the stock could remain volatile as the rally from the $25 million sale quickly wears off.

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But we don't recommend buying ONS or any other penny stock listed above. Our experts here at Money Morning are targeting stocks with huge potential gains ahead of them, not behind them.

Today, Money Morning Small-Cap Specialist Sid Riggs is giving readers another one of his top small-cap stock picks.

He consistently provides triple-digit winners, including his recommendation from December 2013 - Neurocrine Biosciences Inc. (Nasdaq: NBIX) - which is up an incredible 521.5% since then.

top penny stocksToday's stock is a great way to play the mobile banking - or "cashless banking" - industry, which is quickly replacing traditional brick-and-mortar banks.

"Trips to brick-and-mortar bank locations are going the way of the Dodo bird, as millennials (and everyone else for that matter) embrace mobile bank deposits whereby a user can simply use their mobile device to take a photo of a check and upload it straight to a bank," Sid said.

Sid's research shows that nearly 2 billion people will be using their smartphones for banking transactions by 2019. If each of those people makes just one transaction a week, it would amount to 285.7 million transactions every single day.

And by 2021, the global market value for companies making these transactions possible could grow 716% to $865 billion.

Today's pick is poised to make a killing from that immense growth...

This Small-Cap Stock Could Rally as Cashless Banking Explodes

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Our small-cap recommendation today is Mitek Systems Inc. (Nasdaq: MITK).

Mitek develops identity verification software and services that let users safely complete mobile banking transactions, like insurance payments and check deposits. These include Mobile Docs, which is used for scanning financial documents, and Mobile Verify, which can be used for validating driver's licenses.

The company has a presence in the exploding mobile transaction market, which is projected to expand by up to 716% through 2021. According to Statista, total revenue for the tech companies making those transactions could be over $865 billion by 2021.

Mitek's continued dominance will not only come from its mobile banking business, but also from its identity services.

"The company is already the world leader in mobile capture and identity verification, so it has a huge first-mover advantage over its competition," Sid said. "It's no surprise, then, that its top line nearly doubled over the last two years."

Mitek's earnings history shows how its profits are growing at such a rapid rate. The company's annual net income staged a massive turnaround in recent years, going from a $5.3 million loss in 2014 to a $1.9 million profit in 2016. Mitek raked in income of $2.9 million - or $0.08 per share - in Q2 2017. That was up from $2.4 million - or $0.07 per share - in the same period in 2016.

Even more attractive is Mitek's projected earnings growth...

Five analysts surveyed by Yahoo Finance expect the firm to post average 2017 earnings per share (EPS) of $0.28. That's more than quadruple the 2016 EPS of $0.06.

Right now, MITK stock still trades under $10 per share, at $9.85 each.

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