March is now officially over, and most major U.S. indexes posted strong monthly gains. While the Dow Jones Industrial Average was largely flat, the S&P 500 climbed 1.8% last month, capping off its best quarterly gain since 2009 and best Q1 since 1998. The Nasdaq was the standout, gaining 2.6% from 7,532.53 to 7,729.32 at the March 29 close.
But penny stocks naturally earned the biggest monthly gains, with the best-performing penny stock on the Nasdaq climbing 160% from Feb. 28 to March 29. With the overall market consistently rising month after month this year, it’s always important to take a closer look at the tinier companies outperforming the major indexes.
Here’s a ranking of March’s five best-performing Nasdaq penny stocks – and a closer look at the news that drove each stock’s returns last month…
No. 5: Sorrento Therapeutics Inc. (SRNE)
Shares of Sorrento Therapeutics – a biotech firm focused on developing cancer treatments – climbed from $2.03 to $4.75 between the Feb. 28 close and March 29 close, ending the month with a 134% gain. The stock saw its biggest rally from March 20 to March 22 when shares vaulted 70.2% from $3.49 to $5.94.
The bulk of the rally came on March 22 after Sorrento announced that its subsidiary SCILEX Pharmaceuticals finalized the merger with Semnur Pharmaceuticals to create a brand-new company under the SCILEX name. According to a company press release, the combination of SCILEX’s Ztlido lidocaine treatment with Semnur’s lead non-opioid steroid gel – currently in Phase 3 trials – makes the new company “well positioned to become a global leader in non-opioid pain management.” Investors also seemed to think so and boosted shares of SRNE to their highest level in eight months.
No. 4: ConforMIS Inc. (CFMS)
ConforMIS – which develops, manufactures, and sells replacement implants for joints – surged 134.1% last month, rising from $1.23 on Feb. 28 to close at $2.88 on March 29. With that, the stock had logged a whopping year-to-date return of 704% per share. Some of the biggest gains last month occurred between March 11 and March 20 when CFMS shares leaped 124% higher from $1.15 to $2.58.
The rally likely came from investors following the firm’s presentation at the 2019 American Academy of Orthopedic Surgeons in Las Vegas. The company announced on March 13 that it would showcase its new 3D Hip System, which utilizes “advanced imaging and design software, to design, manufacture and deliver the suite of FDA-cleared patient conforming knee and hip replacement implants.”
No. 3: Sunesis Pharmaceuticals Inc. (SNSS)
Shares of the oncology-focused biotech company roared from $0.52 on Feb. 28 to $1.22 on March 29, making for a total monthly gain of 134.6% and total 2019 gain of 193%. The best one-day performance happened on March 22 when SNSS shares soared from $0.96 to $1.25 for a more than 30% return during the session.
While no hard financial data seems to be responsible for the March 22 boost, it seems investors began pouring into SNSS on the heels of a massive volume increase during the March 7 session when it spiked to 5.49 million. That’s more than 560% higher than the average volume of 830,682 shares, per Yahoo! Finance. Retail and institutional investors alike tend to follow the herd when such an enormous spike in daily activity occurs, which appears to be the case with Sunesis during the late March period.
No. 2: Atossa Genetics Inc. (ATOS)
Atossa Genetics saw the most dramatic one-day gain of any stock on this list. While they only climbed 139.5% overall last month, shares of the pharma company, which specializes in treating breast cancer and similar diagnoses, blasted more than 368% higher on March 14 alone, rising from $1.51 to $7.07 on the day. That marked the stock’s highest settlement in 12 months.
As with many biotech and pharma companies, the March 14 gain occurred on the heels of a Food and Drug Administration (FDA) announcement for one of the firm’s breakthrough drugs. The FDA signed off on “expanded treatment” for Atossa’s breast cancer treatment Endoxifen, meaning the government permitted the drug’s prolonged use for a patient that saw reduced tumor activity from initial trials.
No. 1: Shineco Inc. (TYHT)
The top-performing penny stock listed on the Nasdaq last month was Shineco, an herbal- and plant-based medicine company based in China. Shares of Shineco went from $0.50 on Feb. 28 to $1.30 on March 29, resulting in an overall monthly gain of 160%.
Investors pushed the stock up 84.8% on March 19 alone after Shineco said it established a subsidiary firm focused strictly on the cannabis sector. According to a company statement, the new subsidiary will “expand in the industrial cannabis market including planting, CBD processing, CBD derivatives development and the comprehensive utilization of industrial hemp.” U.S.-based investors have been enthusiastic toward the cannabis sector lately, which has mainly shown in Canopy Growth Corp. (CGC) – arguably the most recognizable cannabis stock in U.S. markets, which is up 60.6% so far this year.