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You wouldn't know it from following the mass media and Wall Street, but the stocks handing out the largest profits right now are in the biotechnology industry.
In fact, one of the three best biotech penny stocks to buy for March is a company developing treatments for the gut health of race horses, among other treatments.
Some analysts think it could skyrocket more than 792% over the next 12 months. That's enough to turn a $1,000 investment into $8,920 if these analysts are right.
However, investors must remember that penny stocks are risky investments.
Take VistaGen Therapeutics Inc. (Nasdaq: VTGN) for example. From Dec. 5 to Dec. 6, it climbed 188%, jumping from $0.92 to as high as $2.65.
But less than two weeks later, on Dec. 18, VTGN opened the trading day at $1.03. Investors who purchased the stock when it traded at $2.65 lost more than 61%.
That's why, at Money Morning, we advise our readers to never invest more than 2% of their overall portfolio in such risky investments and to never invest more money than you can afford to lose.
But for investors willing to accept the risks, biotech penny stocks pack major profit potential.
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And to help you find biotech penny stocks with potential, we're showing you three stocks with triple-digit potential according to the analysts who cover them.
All it takes is the announcement of positive clinical trial results to send this next stock soaring…
The Best Biotech Penny Stocks to Watch, No. 3: Synergy Pharmaceuticals Inc.
Synergy Pharmaceuticals Inc. (Nasdaq: SGYP) is a New York-based company developing therapies for gastrointestinal (GI) diseases. GI disorders can affect the stomach, small and large intestines, esophagus, and rectum.
SGYP's main product is plecanatide. It retails under the drug name Trulance.
Trulance/plecanatide is a tablet intended for once-daily use. It treats people with two conditions: chronic idiopathic constipation (CIC), and constipation-predominant irritable bowel syndrome (IBS-C).
In March of last year, Bezinga.com indicated that the full-year 2017 sales for Trulance were expected to top $53 million. For this year, sales are forecast to soar an astounding 575%. That would put total 2018 sales at $362 million.
This forecast puts the company in a good place for profitability. Wall Street analysts are responding accordingly.
Analysts at Canaccord Genuity, for example, placed a 12-year target price of $13 on the stock. From today's opening price of $1.95, that's a whopping 566% climb.
But Synergy Pharmaceuticals isn't the only potential triple-digit gainer on our list…
The Best Biotech Penny Stocks to Watch, No. 2: ZIOPHARM Oncology Inc.
Boston-based ZIOPHARM Oncology Inc. (Nasdaq: ZIOP) develops therapies to fight cancer.
ZIOP is currently partnered with another biotech, Intrexon Corp. (NYSE: XON), and Texas's world-renowned M.D. Anderson Cancer Center to create innovative immune-oncology treatments.
This program is aimed to help get the body's immune system to combat cancer, along with radiation treatment.
In mid-January, ZIOPHARM Oncology said it had begun phase 1 clinical trials to evaluate the combination of three drugs intended to fight malignant tumors affecting the spine and brain.
And it seems we're not the only ones keeping an eye on ZIOPHARM. Wall Street is very bullish on the stock, owing largely to its innovative therapies.
Griffin Securities, for example, set a one-year target price on the stock of $23. The shares currently trade at $3.77, so the achievement of that price target would return slightly over 510% to investors.
That's enough to turn a $1,000 investment into $6,100 a year from now.
But the company with the most impressive potential could skyrocket more than 792% over the next year…