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Investors looking for the best small-cap stock to buy are often looking for the profit potential of penny stocks without the risk associated with over-the-counter exchanges.
Investing in penny stocks can be exciting and massively profitable. But penny stocks can be too volatile and risky for some investors.
Consider one of the top penny stocks from December, VistaGen Therapeutics Inc. (Nasdaq: VTGN). VTGN shares soared 156% in a single day of trading on Dec. 6.
VistaGen is a clinical-stage pharmaceutical company based in California that develops treatments for central nervous system disorders like depression.
On Dec. 6, the company announced it received a patent for its method of production of AV-101, which is in phase 2 clinical trials for antidepressant medicine.
Following the announcement, VTGN shares reached $2.33 after climbing 156% from the previous day's close of $0.92.
But less than a week later, on Dec. 11, VistaGen's stock price fell back down to $1.19 and today trades at $1.09 (Jan. 5).
Investors who sold at the top profited handsomely, but investors who bought at the top are sitting on losses of as much as 52.36%.
As you can see, there is tremendous risk involved with penny stocks.
Fortunately, Money Morning Small-Cap Specialist Sid Riggs looks for companies that show potential for dependable, long-term growth.
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Sid is an expert at finding massive profit opportunities with small-cap stocks. This means that the share prices are affordable and lack much of the risk associated with penny stocks.
For example, Sid's December 2013 small-cap stock pick was a company named Neurocrine Biosciences Inc. (Nasdaq: NBIX), which at the time was trading at $9 per share. NBIX now trades at $80.48, for a gain of 794.2% in just four years.
And Sid has another small-cap stock recommendation that could soar.
Sid's best small-cap stock to buy for 2018 is a medical products company that has devices for self-testing for medical conditions, known for receiving FDA approval for its products.
Here's why this company is our top small-cap stock to buy for 2018...[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
The Best Small-Cap Stock to Buy for 2018
Our pick for the best small-cap stock to own in 2018 is OraSure Technologies Inc. (Nasdaq: OSUR).
The company has two main businesses. Its testing business develops tests to detect various medical conditions such as influenza, Zika, and HIV. OraSure also has a line of drug-screening products to detect the presence of alcohol and narcotics in the body.
OraSure's other business is its popular over-the-counter cryosurgical products. These allow people to apply intense cold therapy to warts, lesions, and other benign skin spots and remove the unwanted tissue.
One of the reasons that OraSure is a top stock to own is because it frequently gets quick FDA approval on its products. In 2010, the company received approval for its blood HCV test product, and in 2011, it received approval for an HCV fingerstick product. Just one year later, in 2012, the company was the first to receive approval for an at-home HIV test, something that competitors still haven't matched.
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The first time Sid recommended OSUR stock was on Feb. 24, when it was trading at $11.12 per share. Since that time, shares have soared 72.93%, to $19.23, today (Jan. 4).
One of the reasons that Sid continues to recommend OraSure is because the stock has been consistently underrated by analysts. This means that it still has room to grow and is an excellent value for investors.
Since Q4 2016, OSUR has blown past analyst earnings expectations by 40.5% on average. As the HIV test market continues to expand, Sid anticipates that this company will keep bringing in the profits for the benefit of its early investors.
Sid recommends investors jump on this opportunity as quickly as possible to take advantage of the maximum gain potential in the coming year for this small-cap profit play.
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