The 3 Best Penny Stocks of 2017 by Total Return

Penny stocks can hand you triple-digit profits in a matter of months, but finding the biggest gainers isn't easy. Today, we're going to show you the three best penny stocks of 2017, ranked by total return since Jan. 1.


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Although we aren't recommending these three gainers right now, we wanted to show you what was behind some of the hottest penny stocks on the market this year.

But we are going to show you a stock we do recommend. And it's one of the best stocks to invest in for 2018...

This company is a top recommendation from Money Morning Small-Cap Specialist Sid Riggs, and it's a play on the mobile banking industry's projected 716% growth over the next four years.

Here's our list of top performers, which includes gains as big as 427.8%...

Best Penny Stocks of 2017, No. 3: Medical Transcription Billing Corp.

The third biggest penny stock gainer on our list is Medical Transcription Billing Corp. (Nasdaq: MTBC), an information technology (IT) company that operates in the healthcare sector. The stock price has surged 304.5%, to $2.93, this year.

MTBC rocketed 109.3% on Oct. 3 alone after the firm announced its flagship talkEHR product would be adopted by medical practices across 42 states.

The talkEHR is a voice-interactive software system that provides access to medical records and listens to requests from doctors or nurses. Investors saw the news as an indicator of further growth prospects for the talkEHR product.

Best Penny Stocks of 2017, No. 2: Marinus Pharmaceuticals Inc.

If you happened to buy Marinus Pharmaceuticals Inc. (Nasdaq: MRNS) at the beginning of the year, you'd already be up 418.8% on your investment. Since Jan. 1, MRNS stock has climbed from $1.01 per share to $5.25.

The biggest news surrounding MRNS stock in 2017 is the successful clinical trials for its epilepsy treatment Ganaxolone in September. The drug is in phase 2 trials, where most patients have shown a reduction in seizure frequency. Ganaxolone specifically treats CDKL5 disorder, a severe and genetic form of epilepsy that results in early onset seizures.

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We'll be watching Marinus stock the rest of the year to see if the momentum from the trial news continues. Since the news in September alone, shares have rallied 69.9%.

Best Penny Stocks of 2017, No. 1: AVEO Pharmaceuticals

Shares of biotech AVEO Pharmaceuticals Inc. (Nasdaq: AVEO) have exploded 427.8%, to $2.85, this year. About 290% of that total 2017 return has happened since June 23, when the firm received a big drug approval in Europe.

AVEO's approved drug is called Tivozanib, a treatment for a common type of kidney cancer called renal carcinoma. According to the American Cancer Society, 1.6% of the global population is at risk of developing some type of kidney cancer at some point.

The company failed to receive U.S. FDA approval for the drug back in 2013, but it has a phase 3 trial set to finish up in the third quarter of 2018. Tivozanib's approval in Europe could boost AVEO's bottom line next year, which is why AVEO will stay on our 2018 stocks to watch list.

best penny stocks of 2017

The gains from these three penny stocks are impressive, which is why investors should add them to their watch list.

But as we mentioned, we don't recommend investing in any of them. They've already seen triple-digit gains this year, and our Money Morning experts focus on finding stocks with gains in front of them.

Today, Money Morning Small-Cap Specialist Sid Riggs is giving you one of the best small-cap stocks to invest in for 2018.

This firm operates in the mobile banking transactions market, which is set to grow 716% over the next four years. According to Sid's research, this growth will boost total revenue for the tech firms that make these transactions possible to $865 billion in 2021.

And this company offers one of the best cybersecurity products for mobile banking, meaning it's poised to dominate the industry in 2018...

One of the Top Small-Cap Stocks to Buy in Mobile Banking

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VASCO Data Security International Inc. (Nasdaq: VDSI) is the best way to profit from the rise in mobile banking transactions.

VASCO provides encryption services for companies that offer or use digital and mobile banking. Its most popular services include electronic signatures and mobile app security. The company's 10,000-plus customers include healthcare companies, government agencies, and multinational banks, including BCR, which is Romania's largest bank by clientele.

Sid likes VASCO's main product, DIGIPASS for Apps, which rolled out behavioral, fingerprint, and face authentication in May 2016. By recognizing a person's distinct physical features, DIGIPASS ensures only the intended user can access the banking data. In the past, a hacker could guess a user's password or trick them into divulging it.

This has singled out DIGIPASS as one of the best personal cybersecurity products out there, even earning a 2017 Global Excellence Award from leading security publication Info Security Products Guide.

The growth of mobile banking will let the company expand its customer base and rake in more profits. Analyst data compiled by Yahoo Finance shows that VASCO's yearly revenue could rise from an expected $185.7 million in 2017 to $192 million in 2018.

This will likely lead to a rebound in the VDSI stock price. Shares are down 12.1% this year to $12, as revenue has dipped 8.2% from Q1 to Q2. But we think that makes now a great time to buy at a discount before shares climb back up in 2018.

Stocks like Vasco are great ways to "ride" the booming mobile banking market for a mere $12 a share. Money Morning Chief Investment Strategist Keith Fitz-Gerald has been researching even more aggressive income potential, too. He's found a special class of investments he calls "26(f) programs," which give investors the opportunity to tap into huge monthly income - $2,000... $5,000... or more - every month for the rest of their lives. Click here to learn how it works... 

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