3 Penny Stocks That Gapped Up Big in Early Morning Trading

Are These Penny Stocks Worth Buying Today?

With penny stocks, finding early morning movers can be a valuable strategy. However, it's worth noting that just because certain penny stocks moved in the morning, does not mean they are worth buying into. But, right now there are plenty of penny stocks to buy that are showing both present and forward value. 

Now, it's also important to consider what the overall industry that a penny stock is in, will do in the longer term. For example, with tech penny stocks, investors need to understand what the underlying technology is, and how useful it will be in the coming months.

Right now, the entire list of penny stocks remains highly volatile. But this volatility is something that investors can use to their advantage if they have the right tools at their disposal. This includes a live news feed, proper research methods, and potentially a trading education. 

All of these factor into how likely you are to make a profit with penny stocks. And considering the massive potential in the stock market as we enter a post-covid economy, the options for your penny stocks watchlist are almost endless.

So, with hundreds of penny stocks to choose from, being picky is a great way to ensure that you're picking the best ones. With all of this in mind, let's take a look at three top penny stock morning movers on Friday, May 14th. 

3 Penny Stocks to Watch Right Now 

1. Biolase Inc. BIOL 
2. BioNano Genomics Inc. BNGO
3. Sundial Growers Inc. SNDL 

Biolase Inc. BIOL 

Up by around 26% in pre-market trading are shares of the biotech penny stock, Biolase Inc. We've covered BIOL stock plenty of times in the past few months. But if you're unfamiliar, let's take a closer look. Biolase is a medical device company that produces dental laser systems.

These systems are used in both dentistry and medicine, but primarily for dental-related applications. The company holds over 271 patented and 41 patent-pending technologies. These technologies allow patients and doctors to complete common procedures with higher efficacy and faster recovery time. 

Biolase states that it has sold over 41,200 laser systems to date in more than 80 countries around the world. And because dental procedures are now occurring at pre-covid levels, it looks like BIOL stock is seeing solid momentum. Its massive rise on May 14th however, is due to the announcement of its Q1 2021 balance sheet.

During the quarter, net revenue grew year over year by a staggering 70%. In addition, the sale of its laser systems grew in the same period by more than 139%. At the end of the quarter, Biolase reported having more than $40.8 million in cash and cash equivalents. 

CEO John Beaver stated that "our strong first-quarter revenue performance reflects increased awareness and pent-up demand for our industry-leading dental lasers as dental offices in the U.S. and abroad continue to reopen and patient volumes return to near pre-Covid-19 levels."

This is a big move and shows that Biolase is growing substantially. Whether this makes it worth watching, however, is up to you.

BioNano Genomics Inc. BNGO 

BioNano Genomics is another biotech penny stock with some big news on May 14th. Similar to BIOL, shares of BNGO rose by around 14% on the release of its first-quarter 2021 balance sheet. In its balance sheet, revenue rose by a solid $2.1 million over Q1 2020 to $3.2 million. 

"2021 is off to a solid start for BioNano. In the first quarter, we sold a record number of flow cells, analyzed a record number of samples in our service lab, drove broad adoption of Saphyr instruments, and ramped up the installation of Saphyr systems that weren't yet operational because of 2020s travel restrictions." 

CEO of BioNano Genomics, Erik Holmlin

The almost 180% YoY revenue increase vastly beat out analysts’ predictions of $2.9 million. And while it did report a net loss of $9.9 million, this can be looked past due to its over $38 million cash balance.

Moving forward, BioNano has a lot going on in its pipeline. This includes the potential of receiving accreditation for its Saphyr systems tests for acute lymphocytic leukemia in Europe. The company states that by the end of 2021, it will install roughly 150 systems around the world. This is more than 50% than it did at the end of last year. 

So, with this incredibly strong performance, BNGO is showing a lot of momentum right now. And, we also have to consider that there is a massive emphasis on biotech stocks in general due to the Covid pandemic. So while this Q1 performance is something to write home about, investors should consider the future of BNGO and what potential that holds. With all of this in mind, BioNano Genomics could be worth adding to your watchlist.

Sundial Growers Inc. SNDL 

Sundial Growers is a marijuana stock seeing massive momentum right now. For some context, it is a Canadian cannabis company, working to provide high-quality marijuana to the public. 

Similar to the aforementioned companies, SNDL posted its Q1 revenue recently. And after jumping around 10% on the news, shares slipped before showing momentum once again, today. The company states that this quarter was the "first positive quarterly earnings from operations in the company's history." Sundial posted an EBITDA of $2.7 million, which is a big deal despite gross revenue dropping over the previous quarter by around 30%. 

The company also announced its plans to acquire Spirit Holdings and its large retail cannabis reach, for $131 million. This should help to broaden Sundial's overall market. While this is all exciting news, there could be another factor at play.

Only a day ago, Boston Beer Company Inc. SAM, which you might know as Samuel Adams, announced that it would be producing non-alcoholic cannabis beverages. 

CEO Dave Burwick stated that "innovation is core to what we do, beginning with craft beer, then hard cider, hard iced tea, and now Truly Hard Seltzer. We believe non-alcoholic cannabis beverages could represent a new frontier of innovation and want to be ready for future opportunities in the U.S."

So while this does not have too much to do with SNDL, we could be seeing a correlative gain because this is cannabis-related news, while it remains up in the air, is SNDL stock worth watching?

Are These Penny Stocks Worth It?

The short answer is that it's up to you and your portfolio. Finding the best penny stocks to buy can be challenging. But, with a watchlist at hand and the right research tools, finding penny stocks that fit your portfolio can be easier than imagined.

Yes, using early morning gainers can be beneficial, but they should only be part of your overall strategy. With all of this in mind, are these penny stocks worth it?