Stock Analysis

Burning Rock Biotech Leads The Charge With 2 Other US Penny Stocks

NasdaqGM:BNR
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As the U.S. markets continue to enjoy a post-election rally, with major indices like the S&P 500 and Dow Jones Industrial Average reaching new record highs, investors are exploring diverse opportunities across various sectors. Penny stocks, often associated with smaller or newer companies, remain a relevant investment area despite their somewhat outdated terminology. These stocks can offer growth potential at lower price points when backed by strong financials and solid fundamentals, providing intriguing opportunities for investors looking beyond the usual market giants.

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Top 10 Penny Stocks In The United States

NameShare PriceMarket CapFinancial Health Rating
BAB (OTCPK:BABB)$0.8479$5.86M★★★★★★
LexinFintech Holdings (NasdaqGS:LX)$3.91$590.24M★★★★★★
QuantaSing Group (NasdaqGM:QSG)$3.08$161.01M★★★★★★
RLX Technology (NYSE:RLX)$1.65$2.03B★★★★★★
Better Choice (NYSEAM:BTTR)$2.10$4.09M★★★★★★
ZTEST Electronics (OTCPK:ZTST.F)$0.2723$9.41M★★★★★★
Golden Growers Cooperative (OTCPK:GGRO.U)$4.50$69.71M★★★★★★
PHX Minerals (NYSE:PHX)$3.50$131.24M★★★★★☆
CBAK Energy Technology (NasdaqCM:CBAT)$1.10$97.13M★★★★★☆
So-Young International (NasdaqGM:SY)$1.25$86.74M★★★★☆☆

Click here to see the full list of 748 stocks from our US Penny Stocks screener.

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

Burning Rock Biotech (NasdaqGM:BNR)

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

Overview: Burning Rock Biotech Limited focuses on developing and selling cancer therapy selection tests in the People's Republic of China, with a market cap of $34.47 million.

Operations: No specific revenue segments have been reported for Burning Rock Biotech Limited.

Market Cap: $34.47M

Burning Rock Biotech, with a market cap of US$34.47 million, is navigating challenges typical for penny stocks. The company remains unprofitable and pre-revenue, but it benefits from a seasoned management team averaging 8.7 years in tenure and is debt-free. Recent strategic advancements include the approval of their LungCure CDx by China's NMPA, marking significant progress in precision oncology solutions for lung cancer. Despite delisting from the London Stock Exchange due to low trading volumes, its Nasdaq listing remains active. Executive changes indicate ongoing adjustments within its financial leadership structure amidst these developments.

NasdaqGM:BNR Debt to Equity History and Analysis as at Nov 2024
NasdaqGM:BNR Debt to Equity History and Analysis as at Nov 2024

Caesarstone (NasdaqGS:CSTE)

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

Overview: Caesarstone Ltd. designs, develops, manufactures, and markets engineered stone and other materials under the Caesarstone brand across various regions including the United States, Canada, Latin America, Australia, Asia, Europe, the Middle East and Africa, and Israel with a market cap of $150.24 million.

Operations: The company generates $508.64 million in revenue from its building products segment.

Market Cap: $150.24M

Caesarstone Ltd., with a market cap of US$150.24 million, faces challenges typical of penny stocks, including unprofitability and a negative return on equity at -21.45%. Despite this, the company maintains strong liquidity with short-term assets of US$345.2 million exceeding both its long-term liabilities and debt levels, which are well covered by operating cash flow. The board and management team are experienced, averaging 3.9 and 2.8 years in tenure respectively, providing stability amid financial struggles such as rising debt-to-equity ratios over five years and declining earnings growth by 67.9% annually over the same period.

NasdaqGS:CSTE Debt to Equity History and Analysis as at Nov 2024
NasdaqGS:CSTE Debt to Equity History and Analysis as at Nov 2024

Butler National (OTCPK:BUKS)

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

Overview: Butler National Corporation, with a market cap of $96.94 million, operates in the aerospace industry by designing, engineering, manufacturing, and servicing a variety of aerostructures and aircraft components across North America and internationally.

Operations: The company's revenue is derived from its Gaming segment ($38.82 million), Aircraft Avionics ($2.44 million), Aircraft Modifications ($26.68 million), and Special Mission Electronics ($13.06 million).

Market Cap: $96.94M

Butler National Corporation, with a market cap of US$96.94 million, shows promising financial metrics for a penny stock. The company's net profit margin has improved significantly to 17.3%, and its return on equity is high at 24.9%. Earnings have grown by an impressive 192.2% over the past year, surpassing industry averages, while short-term assets exceed both long-term and short-term liabilities comfortably. Despite these strengths, Butler National's management team and board lack experience with average tenures of 1.5 and 0.8 years respectively, which could pose challenges in strategic decision-making moving forward.

OTCPK:BUKS Debt to Equity History and Analysis as at Nov 2024
OTCPK:BUKS Debt to Equity History and Analysis as at Nov 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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