After beating the first-quarter revenue expectations by a landslide, BioNano Genomics Inc. (NASDAQ:BNGO) is finishing the week strong with shares swelling by after-market hours on May 13.
BNGO stock shows major potential in the long term and might be undervalued given boosts in cash.
BioNano's earnings report gives interested investors the green light.
BioNano reported a 179 percent YoY revenue jump with $3.2 million during the first quarter. The earnings beat expectations by about 11 percent. The company's gene mapping product, Saphyr, helped drive the growth. BioNano has also increased its balance sheet to $362 million. Overall, the net loss shrunk by nearly $0.6 million, although it still remains at $9.95 million.
BioNano stock's current swell is interesting, but it's the long-term chart and the genomics industry's overall potential that really makes BNGO stock one worth watching.
How does BNGO stock look?
BioNano shares have jumped 18.14 percent since the close on May 13. The regular trading session on May 14 has presented greater stability.
Like most of the sector, BioNano stock is down 27.36 percent YTD. This company is in a unique position because it went public in 2018 and sold new shares at the beginning of 2021 (much like AMC's recent stock equity deal), which greatly increased its market capitalization to $1.43 billion.
Currently, at $5.19 per share, BNGO is trading below its initial debut price per share by about $1.80 or 25 percent. However, the stock's one-year growth of 1,197.75 percent isn't something to skimp over.
Given the stock's YTD fall and impressive first-quarter earnings pivot, BNGO stock looks like it remains undervalued, which makes it a smart time to buy in.
What BNGO highlights about the gene sciences sector
Gene mapping, editing, and drugs all show massive potential. After a big year for CRISPR technology, stock values in the sector are falling off their high horse. However, recent progressions like in-body gene editing and single gene altering show that developments are quick.
BioNano's ETF exposure might be a good opportunity to buy in
An ETF holds the potential to provide strategy-specific diversification you can't find anywhere else. Currently, 11 ETFs hold BNGO stock.
The Invesco DWA Healthcare Momentum ETF (PTH) is the biggest holder ($490 million assets under management) and the largest allocator (3.14 percent is BNGO) for BioNano stock. Trailing 12-month returns are a healthy 33.07 percent with five-year returns compounded almost eight-fold.
Another ETF option is the Principal Healthcare Innovators Index ETF (BTEC). This Nasdaq-traded ETF is up 31.4 percent over the last year, and is currently in a dip that's likely to rebound.
Already invested in BNGO? Hold on
BioNano reported a goal to install enough Saphyr systems to reach about 150 installations in total by the end of 2021. For the first quarter of the year, the company met all of its goal milestones. If BioNano manages to continue this trajectory for the next few quarters, the stock could be in a more prosperous position.