3 Penny Stock Gainers to Watch in November 2017

Penny stocks can offer triple-digit gains in a matter of weeks, which is why we're going to show you three penny stock gainers to keep an eye on this month. These include October's top performers, which have seen returns as high as 219.2%.


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But we're not recommending investing in any of these three stocks today. They've already posted triple-digit gains, meaning they might not offer much profit potential to investors who buy in now.

Instead, we're going to show you one of Money Morning Small-Cap Specialist Sid Riggs' favorite stocks to buy for 2018. It's a company in the "cashless banking" industry, a sector set to grow by 716% through 2021.

First, here are the penny stocks we're watching in November, including one up nearly 220%...

Penny Stock Gainers to Watch, No. 3: Real Goods Solar Inc.

The third penny stock gainer on today's list is Real Goods Solar Inc. (Nasdaq: RGSE). Shares of this retail solar panel company surged 189% on Oct. 4 alone and posted a total gain of 152.9% in October.

Real Goods Solar is known for being one of the first companies to sell retail solar panels in the United States. Since making its first sale in 1978, the company has expanded to all U.S. states and 10 Canadian provinces.

On Oct. 4, the RGSE stock price climbed 189%, from $0.82 to $2.37, after the firm announced an exclusive license agreement with DowDuPont Inc. (NYSE: DWDP) for its Powerhouse 3.0 solar shingles system. Under the agreement, DowDuPont will handle the marketing, sales, and installation of the new system.

As of today (Friday, Nov. 3), RGSE trades at $1.87 per share.

Penny Stock Gainers to Watch, No. 2: Neothetics Inc.

If you had bought Neothetics Inc. (Nasdaq: NEOT) on Oct. 1, you'd have a 172.3% return on your investment right now. Shares of the California biotech climbed 178.7% last month and even soared 230.8% on Oct. 17 following a major announcement.

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The rally came on Oct. 17, after Neothetics and Evofem Biosciences announced a merger in which Evofem would own 87% of the newly combined company. The merger would bring the companies' two lead drug candidates under one roof: Neothetics's LIPO-202, aimed at reducing body fat, and Evofem's Amphora, aimed at preventing vaginal infections.

The Neothetics stock price currently trades at $1.29.

Penny Stock Gainers to Watch, No. 1: Endocyte Inc.

Finally, our top penny stock gainer is Endocyte Inc. (Nasdaq: ECYT). It's a biotech focused on treatments for inflammatory diseases and prostate cancer. Shares of ECYT surged 219.2% in October and 317% from Oct. 2 to Oct. 3 after the firm received positive results from a drug trial.

The company's drug, called PSMA-617, is a radioligand therapeutic (RLT) that will treat patients suffering from certain types of prostate cancer. The drug is now ready for phase 3 trials and has already successfully treated more than 300 patients in previous clinical studies.

penny stock gainersToday, Endocyte stock trades at $4.86 per share.

While these three companies show how much money you can make with penny stocks, the reality is that these gains are in the past. Just because these stocks showed triple-digit returns last month doesn't mean there will be a repeat performance in November.

Instead, Sid is recommending a different stock with future gains in mind. He's known for giving readers small-cap winners. For example, his Neurocrine Biosciences Inc. (Nasdaq: NBIX) recommendation has netted readers a 693.6% profit since first picking it in December 2013.

Today's recommendation is one of the most dominant firms in "cashless banking." This is a growing industry in the financial sector focused on mobile banking transactions. These include depositing checks and making direct payments via services like Venmo and Apple Pay.

According to Sid, the total value of these mobile transactions around the world could hit $865 billion in 2021. This would be up 716% from the current value, near $106 billion.

This stock is trading under $10 a share, but it won't be for long...

Buy This Small-Cap Stock to Profit from Mobile Banking in 2018

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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% over the next four years. 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, and we expect more growth when the firm reports Q3 2017 earnings on Nov. 7.

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 $8.55 each.

Stocks like MITK are a great way to profit from both mobile banking's growth and the rise in cyberattacks. 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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