As the biotech sector heats up more in 2017, small stocks like the three in this article have already turned in some stellar performances. With the entire sector gaining steam, there’s still plenty of upside left. Bret Jensen recommends adding these three stocks to the portfolio.

Sentiment on the biotech sector early in 2017 sure has improved. The main biotech indices gained approximately 10% in the month of February. The sector has added somewhat to those gains so far in March but continues to be unable to break through stubborn upward resistance levels.

Hopefully, a few more M&A transactions over the next few weeks puts the sector over the top and we can start the next leg of the rally which could take us up another 10% to 15% until we hit another established resistance level. If that does happen, I expect for these small biotechs that already have had good starts to the year to post further gains.