3 Promising ASX Penny Stocks With Over A$60M Market Cap

The Australian market recently saw a pullback, with the ASX200 closing down 0.64% as investors took profits after a series of record days. Despite this broader market retreat, there remains interest in niche investment areas like penny stocks, which can offer unique opportunities for growth. While the term "penny stock" may seem outdated, these smaller or newer companies can still present valuable prospects when supported by strong financial foundations.

Top 10 Penny Stocks In Australia

Name	Share Price	Market Cap	Financial Health Rating
Embark Early Education (ASX:EVO)	A$0.785	A$144.03M	★★★★☆☆
LaserBond (ASX:LBL)	A$0.56	A$67.99M	★★★★★★
SHAPE Australia (ASX:SHA)	A$2.86	A$235.47M	★★★★★★
Helloworld Travel (ASX:HLO)	A$2.03	A$327.26M	★★★★★★
Austin Engineering (ASX:ANG)	A$0.52	A$322.48M	★★★★★☆
MaxiPARTS (ASX:MXI)	A$1.70	A$96.8M	★★★★★★
Navigator Global Investments (ASX:NGI)	A$1.595	A$793.93M	★★★★★☆
EZZ Life Science Holdings (ASX:EZZ)	A$2.64	A$121.86M	★★★★★★
Vita Life Sciences (ASX:VLS)	A$2.04	A$110.79M	★★★★★★
Servcorp (ASX:SRV)	A$4.90	A$490.37M	★★★★☆☆

Click here to see the full list of 1,047 stocks from our ASX Penny Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

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$64.98 million.

Operations: The company generates revenue of A$49.66 million from its activities in the production and exploration of hydrocarbons.

Market Cap: A$64.98M

Cue Energy Resources, with a market cap of A$64.98 million and revenue of A$49.66 million, operates without debt, alleviating concerns over interest payments. Its short-term assets cover liabilities comfortably but fall short for long-term obligations. The company has high-quality earnings despite negative growth in the past year compared to its five-year profitability trend. Trading significantly below estimated fair value suggests potential undervaluation in the penny stock realm. The board's experience is notable, though management tenure data is insufficient for assessment. Recent events include an upcoming AGM and shareholder calls focused on financial reports and governance matters.

• Take a closer look at Cue Energy Resources' potential here in our financial health report.
• Examine Cue Energy Resources' past performance report to understand how it has performed in prior years.

Optiscan Imaging (ASX:OIL)

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

Overview: Optiscan Imaging Limited develops, manufactures, and commercializes endomicroscopic digital imaging technology for medical and pre-clinical applications across Australia, Germany, China, and the United States with a market cap of A$133.65 million.

Operations: The company generates revenue of A$2.99 million from its Confocal Microscopes segment.

Market Cap: A$133.65M

Optiscan Imaging, with a market cap of A$133.65 million and revenue of A$2.99 million, exhibits characteristics typical of penny stocks. The company is unprofitable with declining earnings over the past five years and high share price volatility. However, it has reduced its debt significantly over time and maintains more cash than total debt, providing a cash runway for approximately 1.6 years if current cash flow trends persist. Despite the lack of meaningful revenue, Optiscan's experienced management team and board may offer strategic stability as they navigate financial challenges in the competitive medical imaging sector.

• Get an in-depth perspective on Optiscan Imaging's performance by reading our balance sheet health report here.
• Understand Optiscan Imaging's track record by examining our performance history report.

Zeotech (ASX:ZEO)

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

Overview: Zeotech Limited is involved in the exploration and evaluation of mineral properties in Australia, with a market cap of A$88.98 million.

Operations: The company generates revenue from its exploration activities, amounting to A$0.78 million.

Market Cap: A$88.98M

Zeotech Limited, with a market cap of A$88.98 million, is pre-revenue and has experienced increasing losses over the past five years. The company recently raised A$1.82 million through a follow-on equity offering, which may extend its cash runway beyond the current 8-10 months estimate based on free cash flow trends. Despite having no debt and sufficient assets to cover liabilities, Zeotech's share price remains highly volatile, and shareholders have faced dilution with shares outstanding growing by 6.9%. The management team is relatively new but supported by an experienced board as they address financial challenges in mineral exploration.

• Dive into the specifics of Zeotech here with our thorough balance sheet health report.
• Explore historical data to track Zeotech's performance over time in our past results report.

Where To Now?

• Explore the 1,047 names from our ASX Penny Stocks screener here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Want To Explore Some Alternatives?

• 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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