Penny Stocks To Watch In January 2025

Global markets have shown mixed performance recently, with U.S. stocks finishing a strong year despite some end-of-year profit-taking and economic concerns like the Chicago PMI drop and revised GDP forecasts. In this context, investors might consider exploring penny stocks—smaller or newer companies that can offer unique opportunities beyond the mainstream market options. Although the term "penny stock" may seem outdated, these investments remain relevant, especially when they are supported by solid financials and potential for growth.

Top 10 Penny Stocks

Name	Share Price	Market Cap	Financial Health Rating
DXN Holdings Bhd (KLSE:DXN)	MYR0.54	MYR2.69B	★★★★★★
Embark Early Education (ASX:EVO)	A$0.775	A$142.2M	★★★★☆☆
Hil Industries Berhad (KLSE:HIL)	MYR0.90	MYR298.75M	★★★★★★
Foresight Group Holdings (LSE:FSG)	£3.79	£434.2M	★★★★★★
Bosideng International Holdings (SEHK:3998)	HK$3.66	HK$40.3B	★★★★★★
Datasonic Group Berhad (KLSE:DSONIC)	MYR0.415	MYR1.15B	★★★★★★
Lever Style (SEHK:1346)	HK$0.85	HK$539.57M	★★★★★★
Begbies Traynor Group (AIM:BEG)	£0.97	£153.01M	★★★★★★
Stelrad Group (LSE:SRAD)	£1.40	£178.29M	★★★★★☆
Secure Trust Bank (LSE:STB)	£3.54	£67.51M	★★★★☆☆

Click here to see the full list of 5,807 stocks from our Penny Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

TTS (Transport Trade Services) (BVB:TTS)

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

Overview: TTS (Transport Trade Services) S.A. is a company that offers freight forwarding services in Romania, with a market capitalization of RON874.99 million.

Operations: The company's revenue segments include Forwarding at RON679.02 million, River Transport at RON441.72 million, and Port Operations at RON181.78 million.

Market Cap: RON874.99M

Transport Trade Services (TTS) presents a mixed investment profile, trading significantly below its estimated fair value yet exhibiting high share price volatility. The company's debt is well-covered by operating cash flow and it holds more cash than total debt, indicating financial stability. However, recent earnings have declined sharply with net income dropping from RON 232.4 million to RON 25.99 million year-over-year for the nine months ended September 2024. Profit margins have also contracted from 23.1% to 8.7%. Despite past profit growth, current negative earnings growth poses challenges in the competitive shipping industry landscape.

• Unlock comprehensive insights into our analysis of TTS (Transport Trade Services) stock in this financial health report.
• Review our growth performance report to gain insights into TTS (Transport Trade Services)'s future.

McPhy Energy (ENXTPA:ALMCP)

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

Overview: McPhy Energy S.A. specializes in providing hydrogen production and distribution equipment for the hydrogen energy, mobility, and industrial markets, with a market cap of €40.61 million.

Operations: The company generates revenue primarily from its Electric Equipment segment, which accounts for €22.38 million.

Market Cap: €40.61M

McPhy Energy S.A. shows a complex investment landscape with its market cap at €40.61 million and a focus on hydrogen production equipment. The company reported half-year revenue of €10.14 million, up from €7.72 million the previous year, yet remains unprofitable with net losses increasing to €32.05 million from €23.51 million year-over-year. Shareholders have faced dilution over the past year, and while McPhy holds more cash than debt, its cash runway is less than a year under current conditions. Revenue for 2024 is projected between €18-€22 million, indicating potential growth but ongoing financial challenges remain evident.

• Get an in-depth perspective on McPhy Energy's performance by reading our balance sheet health report here.
• Assess McPhy Energy's future earnings estimates with our detailed growth reports.

Peninsula Group (TASE:PEN)

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

Overview: Peninsula Group Ltd offers credit solutions in Israel and has a market cap of ₪491.87 million.

Operations: The company's revenue from Financial Services - Commercial is ₪99.59 million.

Market Cap: ₪491.87M

Peninsula Group Ltd, with a market cap of ₪491.87 million, presents a mixed investment profile. The company boasts strong short-term financial health, as its assets of ₪1.5 billion exceed both short and long-term liabilities significantly. Despite high debt levels with a net debt to equity ratio at 125.2%, the operating cash flow covers this well at 24.4%. The management team is relatively new, averaging 1.8 years in tenure, which may impact strategic stability. Recent earnings show growth in quarterly net income to ILS 15.16 million from ILS 11.68 million year-over-year but declined over nine months compared to the previous year.

• Navigate through the intricacies of Peninsula Group with our comprehensive balance sheet health report here.
• Understand Peninsula Group's track record by examining our performance history report.

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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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