The 1 Penny Stock to Watch This Month Has Already Surged 215.5%

Our top penny stock to watch this month is China Recycling Energy Corp. (Nasdaq: CREG), and it perfectly demonstrates why penny stocks are attractive.

This company has handed investors a 215.5% return in just the past 30 days. Meanwhile, the Dow Jones and S&P 500 have only returned 1.7% and 0.9% over the same period.

However, we don't recommend investing in CREG stock right now. Our Money Morning experts only recommend stocks that have profit potential ahead of them.

Today, Money Morning Small-Cap Specialist Sid Riggs is going to show you one of the best stocks to buy for 2018.

This company has crushed earnings estimates by an average of 40.5% over the last four quarters. That winning streak is set to continue, since the firm is a dominant force in the HIV diagnostic-testing market. That field is set to grow by 56.7% through 2021.

First, here's why CREG stock is the biggest penny stock gainer over the last four weeks…

Why CREG Stock Is the Top Penny Stock to Watch This Month

The biggest reason for CREG stock's 215.5% gain over the last four weeks was U.S. President Donald Trump's announced deals with China.

From Nov. 9 to Nov. 10, the stock soared 360.6% on speculative trades made after Trump announced $250 billion worth of new business deals, involving U.S. firms like Boeing Co. (NYSE: BA) and General Electric Co. (NYSE: GE). Boeing notched a $37 billion agreement to sell the country 300 planes, while GE secured three separate deals valued at a combined $3.5 billion.

Trump didn't mention any deal with China Recycling Energy, but the stock's 360.6% rally was assumed to be triggered by speculation. Over 20 million shares of CREG traded just on Nov. 10 alone. That's compared to its average volume of just 925,000 shares over the 30 days prior.

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Speculative rallies, like CREG's, can often be dangerous for investors. Since the stock rocketed based on no news tied directly to China Recycling Energy, shares typically decline following these rallies. CREG is already back down 34.7% so far this week.

That's why we don't recommend investing in CREG stock today. Instead, Sid – whose picks have netted readers returns as big as 666.5% – is recommending a medical firm that's repeatedly crushed earnings estimates by an average of 40.5% since Q4 2016.

It's also the first company to sell an at-home HIV testing kit. That gives the firm an edge over competitors in the HIV diagnostics market, which could grow 56.7%, from $2.17 billion last year to $3.4 billion by 2021.

Here's why you need to buy this stock before it takes off next year…

One of the Best Small-Cap Stocks to Buy in 2018