Now might be a good time to consider scooping up shares of penny stocks to buy on the dip. However, caution is essential, as penny stocks can be volatile and speculative. So to help reduce the risk to investors, I’ve chosen companies that seem to be on the safer side in terms of their fundamentals.

So here are seven penny stocks to buy on the dip for February.

BioNano Genomics (BNGO)

BioNano Genomics (NASDAQ:BNGO) is a biotech stock that specializes in the analysis of genomic structures. I believe that now might be a good time to invest in BNGO stock. All as it builds from the momentum it started last year. As part of its product development pipeline, the company focused on advancing Optical Genome Mapping (OGM).

In addition, its financial outlook is attractive. BNGO expects to see a 27% to 30% increase in Q4 2023 revenues, quarter over quarter. It also expects its full-year revenue to increase by 29% to 30% from the previous year.  Wall Street is also bullish on BNGO stock as it predicts a 31.11% increase for its top line and a substantial increase in its EPS for the same period.

Tellurian (TELL)

Another one of the top penny stocks to buy on the dip is Tellurian (NYSE:TELL), which is involved in the natural gas business, with a focus on LNG (liquefied natural gas) projects. I’m bullish on most LNG penny stocks, and TELL is no exception. It’s likely one of the better performers due to the construction of its Driftwood LNG project along with the production and sales of natural gas. 

However, last quarter’s results for the company were a bit of a mixed bag. Tellurian reported increases in natural gas production when compared year-over-year for both the second and third quarters. Revenues, though, dipped 46.67% year-over-year to $43.25 million, and it also recorded a net income loss of $65 million.

TELL is still a buy in my eyes, though, as LNG production from its Driftwood site is expected to start in 2027 and could be highly accretive for the company. At just 47 cents per share. TELL offers investors a bargain valuation.

Zomedica (ZOM)

Zomedica (NYSE:ZOM) focuses on the development and commercialization of diagnostic products for pets. Like other other penny stocks to buy on this list, ZOM also reported strong financials last year.

The company anticipated fourth-quarter revenue to exceed $7 million, setting a new record, and overall annual revenue to surpass $25 million. That would mark a significant increase of over 32% from the previous year.  Much of the growth that ZOM experienced can be chalked up to a mix of its diagnostic sales and therapeutic devices, notably its PulseVet and Assisi products.

Looking ahead, the company expects full-year revenue to be in the range of $31 to $35 million. This projection represents an approximate 40% increase at the higher end of the range compared to the revenue in 2023. 

Ideanomics (IDEX)

Ideanomics (NASDAQ:IDEX) operates in the electric vehicle (EV) and financial technology sectors, helping to commercialize EV fleets while offering disruptive fintech products. The company also has some commercial interest in the e-mobility sector through Ideanomics’ subsidiary, Energica Inside, which agreed recently to provide electric powertrain technology for the Nimbus Model C motorcycle.

The company reported a challenging previous quarter, with revenues declining 91.91% year-over-year to $670,000. Also, its net cash flow over the past twelve months has been negative at $64.85 million. Still, its valuation may be too cheap to ignore, with a price-to-sales ratio is just 0.09.

Sundial Growers (SNDL)

Sundial Growers (NASDAQ:SNDL) is a cannabis company focusing on the production and sale of cannabis products for the adult-use market.

Cannabis remains a speculative sector despite the emerging health benefits that cannabis and hemp have to offer. Still, I remain bullish, especially for SNDL, given its recent financial performance and M&A deals.

Sundial’s strategic moves and acquisitions over the past two years have positioned it for a projected annual revenue of $1 billion by the end of 2023, with a focus on profitability by 2024. Last quarter, SNDL reported revenues of 237.6 million with a free cash flow of 25.62 million.

Some Wall Street analysts also seem to agree that SNDL is tracking well toward profitability, as its EPS is expected to be positive by FY2025 at the latest, and there’s also a forecasted top line expansion for this company as well.

Castor Maritime (CTRM)

Castor Maritime (NASDAQ:CTRM) is a global shipping company that operates a fleet of vessels. The maritime industry has suffered headwinds due to geopolitical conflicts, but overall I believe that the backdrop will continue to be accretive to investors.

What I like about CTRM stock is that it has a very robust balance sheet, which it has strengthened recently. It’s somewhat unusual to find a penny stock in the shipping industry that’s not straddled by debt. In January 2024, the company announced the sale of two Panamax bulk carrier vessels, the M/V Magic Nova and the M/V Magic Horizon, for an aggregate price of $31.9 million.

CTRM also has $793 million in unrestricted cash and no outstanding debt, which means it may navigate 2024 with more ease than some of its peers, who are contending with multiple economic and geopolitical headwinds.

The company’s valuation is also cheap, trading at just 0.80 times earnings and 0.32 times sales.

Phunware (PHUN) 

Phunware (NASDAQ:PHUN) specializes in mobile software and blockchain solutions for global brands.

Part of PHUN’s core offering is its fully integrated enterprise cloud platform for mobile that enables brands to engage, manage, and monetize users worldwide.

PHUN is another one of those penny stocks to buy that have reported strong results recently. In the third quarter of 2023, the company reported net revenues of $2.8 million. A substantial portion came from platform and hardware revenues. The company is also rated as a “Strong buy” among analysts.

Penny Stocks

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Read More: Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.