10 Top Penny Stocks This Week and One Small-Cap Stock to Buy

Today we're bringing you the 10 top-performing penny stocks over the last week. But we're doing even more than that. We're also revealing an affordable small-cap pick on track to generate returns far more reliable than penny stocks'.

You see, while penny stocks can generate significant returns in a short amount of time, they often lack the strong financials necessary to fuel reliable growth. Our small-cap pick avoids this shortfall, rewarding smart investors with a serious profit opportunity instead.

In order to identify small caps like this, we use the Money Morning Stock VQScore system to find the best stocks with market caps between $300 million and $2 billion - the standard definition for small-cap stocks.

After looking at last week's top penny stock, we'll show you a small cap that's on the verge of tremendous growth.

Here are the top performers from last week...

Penny Stock Current Share Price Last Week's Gain
Staffing 360 Solutions Inc. (Nasdaq: STAF) $2.58 96.35%
IZEA Inc. (Nasdaq: IZEA) $1.65 85.19%
ShiftPixy Inc. (Nasdaq: PIXY) $3.35 78.38%
MER Telemanagement Solutions Ltd. (Nasdaq: MTSL) $3.31 41.07%
IsoRay Inc. (NYSE: ISR) $0.60 38.64%
TransGlobe Energy Corp. (Nasdaq: TGA) $3.74 37.76%
Actinium Pharmaceuticals Inc. (OTCMKTS: ATNM) $0.27 26.31%
Blonder Tongue Labs Inc. (NYSE: BDR) $1.56 24.58%
Bridgeline Digital Inc. (Nasdaq: BLIN) $1.51 24.51%
Cel-Sci Corp. (NYSE: CVM) $0.91 24.03%

While these penny stocks generated strong returns last week, they're unlikely to produce the same level of profit again anytime soon.

However, our favorite small cap is on track to generate great returns that will last.

It's a steel company that's making a killing off the changing global trade landscape and trading at penny stock prices.

And it's on track to gain at least 60% over the next year...

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Companhia Siderúrgica Nacional is Our Small Cap to Buy

Companhia Siderúrgica Nacional (NYSE: SID) is the second-largest steel producer in Brazil and one of the largest crude steel producers in South America. Located in Rio de Janeiro, Brazil, the company produces a wide range of steel products, including galvanized steel and tin.

According to Credit Suisse, which recently upgraded the company's stock to "outperform," the company is well-positioned to take advantage of the U.S. tariff war on steel. Credit Suisse says "global steel fundamentals are largely unchanged," and SID's "business fundamentals remain intact."

Not only that, but global steel demand is projected to grow by 1.6% in just the next year. India, one of the world's fastest-industrializing countries, is expected to increase demand by 5.5% alone.

While American steel producers will be weighed down by the trade war, SID will be able to pick up the slack.

Increasing demand is already evident in the company's top line. Revenue has risen sharply over the last three years, jumping 44% between 2015 and 2017.

At the same time, SID has managed to cut losses significantly from $1.2 million to just under $900,000 - a drop of over 25%.

With a current return on equity of 18.63%, SID's management shows it deploys capital strategically. That could help position it to provide significant profits to savvy investors.

Today SID is trading for $2.04 per share. However, this stock is projected to hit $3.15 as trade tensions heat up in July - a gain of 60%.

Stocks like Companhia Siderúrgica Nacional are easy to identify thanks to the VQScore system.

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