With U.S. stocks in trouble through the end of 2024, with the Dow Jones and S&P 500 expected to post monthly losses, investors are increasingly looking beyond large-cap stocks for opportunities. Penny stocks are a term that may seem outdated but remains relevant, representing smaller or less mature companies that offer significant value potential. By focusing on companies with strong financial profiles and growth potential, investors may uncover promising opportunities in these overlooked segments of the market.
Name
share price
Market value
financial health rating
BAB (OTCPK:BABB)
$0.8301
$6.25 million
★★★★★★
Inter & Co (NASDAQ: INTR)
$4.19
$1.87B
★★★★☆☆
Guangxing Group (NASDAQ: QSG)
$3.08
$104.78 million
★★★★★★
Zhongchai Electronics (OTCPK:ZTST.F)
$0.285
$9.2 million
★★★★★★
Tantech Holdings (NASDAQ CM: TANH)
$0.23
$1.59 million
★★★★★★
Imperial Petroleum (NASDAQ: IMPP)
$3.07
$87.96 million
★★★★★★
Gold Growers Cooperative (OTCPK: GGRO.U)
$4.50
$67.38 million
★★★★★★
BTCS (NASDAQ CM: BTCS)
$2.50
$44.07 million
★★★★★★
Smith Microsoft Corporation (NASDAQ: SMSI)
$1.39
$25.72 million
★★★★★☆
CBAK Energy Technologies (NASDAQ CM:CBAT)
$1.08
$96.23 million
★★★★★☆
Click here to see the complete list of 737 stocks in our US Penny Stock Screener.
Let’s take a closer look at a few of the companies we screened.
Simple Wall Street Financial Health Rating: ★★★★☆☆
Overview: Art’s-Way Manufacturing Co., Inc., with a market capitalization of $12.28 million, is a company that manufactures and sells agricultural equipment and specialized modular scientific and agricultural buildings in the United States and internationally.
operations: The company’s revenue comes from two main segments: $8.28 million from modular construction and $16.9 million from agricultural products.
Market capitalization: $12.28 million
Art’s-Way Manufacturing faces the challenge of declining sales as a penny stock, with sales of $18.33 million in the first nine months of 2024, down from $23.43 million last year. Although not yet profitable, the company has managed to reduce its losses for more than five years and has maintained positive free cash flow and ample cash runway for more than three years. Although the company has a high net debt-to-equity ratio of 57.9%, its short-term assets still exceed its liabilities. A recent leadership change, which brought in Marc McConnell as CEO, could impact future strategic direction and operational efficiency.
NasdaqCM: ARTW Debt-Equity History and Analysis as of December 2024
Simple Wall Street Financial Health Rating: ★★★★★★
Overview: VYNE Therapeutics Inc. is a clinical-stage biopharmaceutical company developing patented treatments for immune-inflammatory diseases with a market capitalization of $46.76 million.
operations: The company generated $490,000 in revenue from the development and commercialization of foam formulations.
Market capitalization: $46.76 million
VYNE Therapeutics is a clinical-stage biopharmaceutical company that is still pre-revenue, with revenue of $490,000 and a market capitalization of $46.76 million. Despite the recent shareholder dilution, the company has no debt and has enough cash to operate for more than a year. VYNE’s management team is experienced, with an average tenure of 4.8 years, which may help execute on its strategy at a time when it’s not profitable and expects earnings to fall 18.2% annually over the next three years. The recent positive results from VYN202’s Phase 1a trial highlight potential future growth avenues; however, continued losses highlight the typically high-risk nature of penny stocks in this industry.
NasdaqCM: VYNE debt-for-equity swap history and analysis through December 2024
Simple Wall Street Financial Health Rating: ★★★★★★
Overview: Skillz Inc. operates mobile gaming platforms in the United States, Israel, China and Malta, with a market value of approximately US$93.09 million.
operations: The company’s revenue came primarily from the United States, at $93.25 million, and from other countries at $2.16 million.
Market capitalization: $93.09 million
Skillz Inc., with a market capitalization of $93.09 million, faces the typical challenges of a penny stock, including losses and lower profit forecasts. Still, the company maintains a strong cash position, with short-term assets significantly exceeding both short-term and long-term liabilities. Recent strategic moves include a stock repurchase program totaling $41.1 million, funded by existing cash reserves, which may reflect management’s confidence in the company’s valuation. However, the management team’s relative inexperience, with an average tenure of one year, may hamper strategy execution as it contends with ongoing financial losses and industry competition.
NYSE: SKLZ Debt-for-Equity Swap History and Analysis Through December 2024
Use our filters to get a closer look at all 737 US penny stocks.
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This article from Simply Wall St is general in nature. We only use unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended to provide financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative information. Simply Wall St does not have a position in any of the stocks mentioned.
Companies discussed in this article include NasdaqCM:ARTW NasdaqCM:VYNE and NYSE:SKLZ.
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