The Top Penny Stock to Watch Right Now Is Up 360% in 2017

Among the top penny stocks to watch right now is one which has returned an impressive 360% so far this year and shows no sign of slowing.

AVEO Pharmaceuticals Inc. (Nasdaq: AVEO) has climbed an astounding 360% year to date, to its current share price of $2.99.

AVEO shares have been climbing since its drug Tivozanib received a recommendation for approval in Europe back in June. In fact, the stock shot up nearly 50% shortly after the announcement of the recommendation.

This means the European Commission will consider approval of the drug, which is targeted for treatment of advanced renal cell carcinoma, according to MarketWatch.

Advanced renal cell carcinoma is one of the most frequently occurring cancers and is forecasted to be among the fastest-growing cancers over the next 10 years.

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Penny stocks like AVEO Pharmaceuticals, whose products and services receive approval or favorable news, can deliver investors triple-digit returns in a matter of days. That's why these stocks are among the top penny stocks to watch.

However, investors must be aware that penny stocks are riskier than normal stocks. Penny stocks are a volatile class, meaning shares can lose gains just as quickly as they make them.

This is because penny stocks are often the stocks of fledgling companies, with products under development and not fully rolled out to the public. If the companies encounter an unforeseen problem with development, or their plans do not come to fruition, the stocks can plummet.

That's why we're bringing you an even better stock to buy. Money Morning Small-Cap Specialist Sid Riggs has a less risky stock pick with serious upside.

Now, the company Sid is recommending is not a penny stock. Instead, he's recommending a small-cap stock that's still affordable for penny stock investors. Plus, small caps are less volatile than penny stocks.

His top pick is in the automotive sector, but you're not likely to recognize the name, especially in the United States.

The company actually operates in China. And one of the reasons the stock is a top pick is that the automotive market there is growing by leaps and bounds.

Between 2013 and 2016, car sales in China climbed a whopping 45%. Over the same period, the United States and European Union registered increased car sales of 12.5% and nearly 23%, respectively – impressive, but outpaced by the growth in China.

In 2015 alone, car ownership in China grew to 172 million, more than half the total U.S. 2015 population of nearly 321 million.

Here's how to tap into this fast-growing market with Sid's pick…

The Top Penny Stock to Watch for Skyrocketing Car Sales in China