Stock Analysis

3 Promising Penny Stocks With Market Caps Under $2B In US

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As U.S. markets experience a slight pullback with the S&P 500 and Nasdaq Composite shedding some recent gains, investors are closely watching for opportunities amid fluctuating indices. For those looking to invest in smaller or newer companies, penny stocks—despite the name's vintage feel—can still offer surprising value. These stocks, often overlooked, can present compelling opportunities when backed by strong financials and growth potential, making them attractive options for investors seeking under-the-radar companies poised for success.

Top 10 Penny Stocks In The United States

NameShare PriceMarket CapFinancial Health Rating
BAB (OTCPK:BABB)$0.807$6.3M★★★★★★
Inter & Co (NasdaqGS:INTR)$4.58$1.89B★★★★☆☆
QuantaSing Group (NasdaqGM:QSG)$3.08$153.34M★★★★★★
Imperial Petroleum (NasdaqCM:IMPP)$2.90$87.96M★★★★★★
Golden Growers Cooperative (OTCPK:GGRO.U)$4.50$69.71M★★★★★★
Permianville Royalty Trust (NYSE:PVL)$1.48$49.83M★★★★★★
CBAK Energy Technology (NasdaqCM:CBAT)$0.879$79.96M★★★★★☆
Smith Micro Software (NasdaqCM:SMSI)$0.7413$13.25M★★★★★☆
Zynerba Pharmaceuticals (NasdaqCM:ZYNE)$1.30$65.6M★★★★★☆
Safe Bulkers (NYSE:SB)$3.94$422.84M★★★★☆☆

Click here to see the full list of 706 stocks from our US Penny Stocks screener.

We'll examine a selection from our screener results.

Chimerix (NasdaqGM:CMRX)

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

Overview: Chimerix, Inc. is a biopharmaceutical company focused on developing medicines to improve and extend the lives of patients with deadly diseases, with a market cap of $77.79 million.

Operations: The company generates its revenue primarily from its Pharmaceuticals segment, totaling $0.16 million.

Market Cap: $77.79M

Chimerix, Inc., a biopharmaceutical company with a market cap of US$77.79 million, is pre-revenue, generating only US$0.16 million from its Pharmaceuticals segment. The company recently announced plans to submit an NDA for dordaviprone with the FDA, aiming for accelerated approval as a treatment for recurrent H3 K27M-mutant diffuse glioma. Despite being unprofitable and experiencing high share price volatility, Chimerix has reduced its losses by 20.7% annually over the past five years and maintains sufficient cash runway for more than a year without debt concerns.

NasdaqGM:CMRX Financial Position Analysis as at Dec 2024

Cumberland Pharmaceuticals (NasdaqGS:CPIX)

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

Overview: Cumberland Pharmaceuticals Inc. is a specialty pharmaceutical company that acquires, develops, and commercializes prescription products for hospital acute care, gastroenterology, and oncology in the United States and internationally, with a market cap of $17.41 million.

Operations: The company's revenue is primarily generated from its specialty pharmaceutical products, amounting to $36.79 million.

Market Cap: $17.41M

Cumberland Pharmaceuticals, with a market cap of US$17.41 million, faces challenges as it remains unprofitable with a negative return on equity of -44.32%. The company reported declining sales in the third quarter at US$9.09 million and increased net losses compared to the previous year. Despite these hurdles, Cumberland has made strides with FDA approval for a simplified dosing regimen for Acetadote®, potentially enhancing patient outcomes and reducing medication errors. Additionally, recent research highlights Caldolor®'s safety benefits over ketorolac, suggesting improved healthcare utilization. The firm maintains sufficient cash runway exceeding three years without significant shareholder dilution concerns.

NasdaqGS:CPIX Financial Position Analysis as at Dec 2024

Inter & Co (NasdaqGS:INTR)

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

Overview: Inter & Co, Inc., with a market cap of $1.89 billion, operates through its subsidiaries in banking and spending, investments, and insurance brokerage businesses.

Operations: The company generates revenue from several segments, including Banking & Spending (R$3.57 billion), Inter Shop (R$272.22 million), Investments (R$243.48 million), and Insurance Brokerage (R$181.21 million).

Market Cap: $1.89B

Inter & Co, Inc., with a market cap of $1.89 billion, has shown significant financial growth, reporting a net income increase to BRL 242.67 million in Q3 2024 from BRL 91.29 million the previous year. The company's earnings growth over the past year was very large at 326.2%, outpacing the banking industry's decline. However, it faces challenges with high bad loans at 8.6% and recent shareholder dilution of 9.3%. Despite these issues, Inter & Co benefits from primarily low-risk funding sources and trades below its estimated fair value by nearly a quarter, indicating potential investment appeal within penny stocks.

NasdaqGS:INTR Debt to Equity History and Analysis as at Dec 2024

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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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