ASX Penny Stocks To Watch In October 2024

The Australian market is experiencing a slight downturn, with the ASX200 futures indicating a minor decline and economic uncertainties affecting various sectors. Despite these challenges, investors continue to explore opportunities in lesser-known areas of the market. Penny stocks, while an older term, remain relevant for those seeking affordable entry points into companies that might offer growth potential when supported by strong financials. In this article, we will explore three noteworthy penny stocks that could present compelling opportunities amidst current market conditions.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
LaserBond (ASX:LBL)	A$0.61	A$71.5M	★★★★★★
Embark Early Education (ASX:EVO)	A$0.80	A$127.64M	★★★★☆☆
MaxiPARTS (ASX:MXI)	A$1.87	A$103.44M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.55	A$341.08M	★★★★★☆
Helloworld Travel (ASX:HLO)	A$1.845	A$297.19M	★★★★★★
Navigator Global Investments (ASX:NGI)	A$1.72	A$842.94M	★★★★★☆
Perenti (ASX:PRN)	A$1.19	A$1.1B	★★★★★★
Atlas Pearls (ASX:ATP)	A$0.135	A$58.82M	★★★★★★
GTN (ASX:GTN)	A$0.47	A$92.11M	★★★★★★
Joyce (ASX:JYC)	A$3.915	A$115.48M	★★★★★★

Click here to see the full list of 1,032 stocks from our ASX Penny Stocks screener.

We'll examine a selection from our screener results.

Alligator Energy (ASX:AGE)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Alligator Energy Limited is involved in mineral exploration activities in Australia and Italy, with a market cap of A$182.06 million.

Operations: The company's revenue segment is focused on Mining and Exploration, generating A$1.11 million.

Market Cap: A$182.06M

Alligator Energy Limited, with a market cap of A$182.06 million, remains pre-revenue with earnings under US$1 million. Despite being debt-free and having short-term assets of A$29.3 million that cover both short- and long-term liabilities, the company is currently unprofitable with increasing losses over the past five years. The management team and board are seasoned, averaging tenures of 5.1 and 9.3 years respectively. Although Alligator Energy was recently added to the S&P Global BMI Index, it does not forecast profitability in the next three years but maintains a cash runway exceeding one year based on current free cash flow.

• Unlock comprehensive insights into our analysis of Alligator Energy stock in this financial health report.
• Evaluate Alligator Energy's prospects by accessing our earnings growth report.

Bathurst Resources (ASX:BRL)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Bathurst Resources Limited focuses on the exploration, development, and production of coal in New Zealand with a market cap of A$144.48 million.

Operations: The company's revenue is derived from two main segments: Export, generating NZ$340.55 million, and Domestic, contributing NZ$133.38 million.

Market Cap: A$144.48M

Bathurst Resources Limited, with a market cap of A$144.48 million, operates in the coal sector with significant revenues from export (NZ$340.55 million) and domestic (NZ$133.38 million) markets. The company has experienced a decline in net income to NZ$38.55 million from NZ$90.49 million the previous year, reflecting negative earnings growth of 57.4%. Despite this, Bathurst remains debt-free and offers a low price-to-earnings ratio of 4.1x compared to the Australian market average of 19.6x, indicating potential value for investors seeking exposure in penny stocks without high leverage concerns.

• Dive into the specifics of Bathurst Resources here with our thorough balance sheet health report.
• Review our historical performance report to gain insights into Bathurst Resources' track record.

Cue Energy Resources (ASX:CUE)

Simply Wall St Financial Health Rating: ★★★★★☆

Overview: Cue Energy Resources Limited is an oil and gas company involved in the exploration, development, and production of petroleum products with a market capitalization of A$73.36 million.

Operations: Cue Energy Resources generates revenue of A$49.66 million from its production and exploration activities in hydrocarbons.

Market Cap: A$73.36M

Cue Energy Resources, with a market cap of A$73.36 million, operates debt-free and trades significantly below its estimated fair value. The company reported stable production levels despite disruptions, generating revenue of A$49.66 million for fiscal year 2024. Although earnings growth was negative at -6.7%, it outperformed the broader industry decline. Cue's return on equity stands high at 21.9%, and its short-term assets exceed liabilities by a comfortable margin, though long-term liabilities remain uncovered by short-term assets alone. Despite an unstable dividend track record, the company declared a final dividend of A$0.01 per share for the period ended June 2024.

• Jump into the full analysis health report here for a deeper understanding of Cue Energy Resources.
• Evaluate Cue Energy Resources' historical performance by accessing our past performance report.

Summing It All Up

• Reveal the 1,032 hidden gems among our ASX Penny Stocks screener with a single click here.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Jump on the AI train with fast growing tech companies forging a new era of innovation.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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