Best Growth Penny Stocks for 2021, Are Small-Caps Worth Watching?

(Penny Stocks via Comtex)

3 Growth Penny Stocks to Watch Right Now

Finding growth penny stocks in 2021 can be challenging. With the rise of assets like Bitcoin, DogeCoin, small-caps and everything in between, this year has already become one for the books.

Yesterday on June 10th, we saw the small-name biotech penny stock Orphazyme ADR (NASDAQ: ORPH) shoot up by over 900% in a single day. It's worth noting that shares have since fallen by more than 70%. This is a great example of the hyper-volatility we see often with penny stocks. And while the case for ORPH stock is one of its own, we do see large intraday moves often, albeit not usually as large as this.

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So, when investing in penny stocks, it's crucial to understand your risk tolerance and portfolio goals. This is the best way to ensure that any penny stocks you want to buy, align with your tolerance for price fluctuations. While many penny stocks are extremely volatile, there are quite a few that show solid levels of stability. It simply comes down to knowing where to look.

With penny stocks, it's also extremely important to do as much research as possible. This way, you can stay ahead of the game and expect the unexpected. Considering all of this, here are three growth penny stocks to watch in 2021 and beyond.

3 Growth Penny Stocks For Your 2021 Watchlist

  1. Xinyuan Real Estate Co. Ltd. (NYSE: XIN)
  2. Biolase Inc. (NASDAQ: BIOL)
  3. Aptinyx Inc. (NASDAQ: APTX)

1. Xinyuan Real Estate Co. Ltd. (NYSE: XIN)

Up by a solid 20% or so at midday is Xinyuan Real Estate Co. Ltd. For some context, XIN is a real estate developer working primarily out of China. Additionally, it manages large scale, high quality real estate projects in over twelve cities across the country.

Recently, XIN moved into the New York real estate market, which has been known to be highly lucrative. Yesterday, it announced big news, which could be a potential reason behind todays gain. In early morning trading on June 10th, Xinyuan announced the completion of five newly constructed properties across China.

"We are thrilled to have completed five high-quality accommodations. These projects further exemplify our commitment to construction excellence and the Company's dedication to meeting and exceeding client demands. Providing comfortable and convenient real estate related products and services to middle-class consumers will continue to be our top priority."

Mr. Zhang Yong, Chairman of Xinyuan Group

Right now, the real estate market around the world is booming. There are a few reasons why this is the case. For one, as we enter a post-Covid era many people are beginning to buy homes again.

In the U.S. for example, near-zero interest rates combined with massive stimulus given out over the past year, mean that people have more free income to rent and purchase homes. And in China, massive industrial projects like the ones completed yesterday for XIN, can begin again. Considering all of this, will XIN make your list of penny stocks to watch?

Penny_Stocks_to_Watch_Xinyuan Real Estate Co. Ltd. (XIN Stock Chart)

2. Biolase Inc. (NASDAQ: BIOL)

Biolase Inc. is a penny stock that we have covered frequently over the past few months. Up by around 4% at midday, Biolase is as its name suggests, a biotech penny stock. But, instead of manufacturing drugs, Biolase produces laser systems for use in doctors office, and primarily for dental applications.

Last week, the company announced that two studies reported in the International Journal of Periodontics & Restorative Dentistry and Lasers in Medical Science, support its new proprietary laser technology.

"Although studies can vary, data suggests as much as 56% of people with dental implants may have peri-implantitis. Unfortunately, treatment methods for peri-implantitis can be painful, costly, ineffective and unpredictable.

The findings of these recent studies confirm that Waterlase laser technology can be a more viable treatment option than alternative methods. We look forward to continuing to provide dentists with minimally invasive treatment options through advanced laser technology that benefits their patients."

John Beaver, CEO of Biolase

While dental procedures were understandably down during the pandemic, they have since increased back to pre-Covid levels. This could be one of the main reasons that shares of BIOL stock have jumped by a solid 170% over the past six months.

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And, with more people going to see their dentists following a year of not being able to go into the office, Biolase could see higher adoption of its technologies. While its laser systems can be pricy, they do offer a fantastic alternative for common procedures. With this in mind, will BIOL stock make your watchlist this year?

Penny_Stocks_to_Watch_Biolase Inc. (BIOL Stock Chart)

3. Aptinyx Inc. (NASDAQ: APTX)

One of the biggest gainers of the day is Aptinyx Inc. By midday, shares of APTX stock were up by as much as 41% to just over $4.50 per share. Today's momentum could be coming from a TIpRanks article titled '"Strong Buy" Penny Stocks That Could Rally to $10 or More". While this is not any news related to the company, we see massive speculation across the board with penny stocks due to something as simple as an article put out.

But, besides the hype from one article, those who wish to invest in APTX should do their own research. To better understand APTX, we have to look at its financials. Last month, Aptinyx reported its Q1 2021 financial results as well as some highlights from the quarter. By the end of the period, Aptinyx reported holding around $146 million in cash on hand. It states that this should support its operations until at least 2023.

"We have made excellent progress across our clinical stage programs over the past few months. This progress was exemplified by our positive meeting with the FDA regarding our development of NYX-783 in PTSD, and the recommencement of our Phase 2 study of NYX-458 in patients with Parkinson's disease and dementia with Lewy bodies."

Norbert Riedel, PhD., CEO of Aptinyx

These two trials alone are both interesting and important for investors to consider. Moreover, its large cash flow is something that we do not see as often with biotech companies. Considering this and the above events, will APTX be on your list of penny stocks to watch?

Penny_Stocks_to_Watch_Aptinyx

Is 2021 the Year That Penny Stocks Take Off?

Many investors are excited about the coming months for penny stocks. With Covid cases in a massive decline, traders seem hopeful that the near future could bring increased momentum for the entire stock market.

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Although there are some fears of the new variants of the virus, early studies show that vaccines are still effective. This means that a return to normalcy could be entirely possible. Because Covid has such a large effect on the stock market right now, staying up to date with all related news is very important. With all of this in mind, is 2021 the year that penny stocks take off?

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