US Penny Stocks With Market Caps Under $3B

Stocks in the United States have recently taken a breather following a post-election rally, with major indices like the Dow Jones Industrial Average and S&P 500 experiencing slight declines after reaching record highs. Amidst this backdrop, investors continue to explore diverse opportunities across various market segments. Penny stocks, often representing smaller or newer companies, remain a relevant investment area despite their somewhat outdated label. These stocks can offer surprising value when backed by solid financial foundations, presenting potential for significant returns.

Top 10 Penny Stocks In The United States

Name	Share Price	Market Cap	Financial Health Rating
BAB (OTCPK:BABB)	$0.839	$5.67M	★★★★★★
QuantaSing Group (NasdaqGM:QSG)	$3.08	$161.01M	★★★★★★
Data Storage (NasdaqCM:DTST)	$4.94	$33.86M	★★★★★★
RLX Technology (NYSE:RLX)	$1.59	$2.03B	★★★★★★
AsiaFIN Holdings (OTCPK:ASFH)	$1.00	$79.11M	★★★★★★
PHX Minerals (NYSE:PHX)	$3.34	$125.56M	★★★★★☆
So-Young International (NasdaqGM:SY)	$1.25	$86.82M	★★★★☆☆
Flexible Solutions International (NYSEAM:FSI)	$4.35	$54.41M	★★★★★★
LexinFintech Holdings (NasdaqGS:LX)	$3.20	$591.89M	★★★★★★
Zynerba Pharmaceuticals (NasdaqCM:ZYNE)	$1.30	$65.6M	★★★★★☆

Click here to see the full list of 739 stocks from our US Penny Stocks screener.

Let's review some notable picks from our screened stocks.

CollPlant Biotechnologies (NasdaqGM:CLGN)

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

Overview: CollPlant Biotechnologies Ltd. is a regenerative and aesthetic medicine company specializing in 3D bioprinting of tissues and organs, as well as medical aesthetics, with a market cap of $45.59 million.

Operations: The company generates its revenue from the biotechnology segment, amounting to $0.69 million.

Market Cap: $45.59M

CollPlant Biotechnologies, with a market cap of US$45.59 million, is a pre-revenue company in the regenerative and aesthetic medicine space, generating less than US$1 million in revenue. Despite being unprofitable and not expected to achieve profitability soon, it has a seasoned management team and no debt. Its short-term assets significantly exceed both short- and long-term liabilities. Recent strategic collaborations with Stratasys focus on innovative 3D bioprinting solutions for breast implants, targeting the substantial US$3 billion global breast implant market. The company maintains sufficient cash runway for over three years based on current free cash flow levels.

• Take a closer look at CollPlant Biotechnologies' potential here in our financial health report.
• Assess CollPlant Biotechnologies' future earnings estimates with our detailed growth reports.

Marqeta (NasdaqGS:MQ)

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

Overview: Marqeta, Inc. operates a cloud-based open application programming interface platform providing card issuing and transaction processing services, with a market cap of approximately $2.08 billion.

Operations: The company's revenue is derived from providing services to financial companies, amounting to $490.03 million.

Market Cap: $2.08B

Marqeta, Inc., with a market cap of US$2.08 billion, has recently turned profitable and reported third-quarter sales of US$127.97 million, up from the previous year. Despite its profitability, Marqeta's earnings are impacted by large one-off items and it faces high share price volatility. The company is debt-free with strong short-term assets exceeding liabilities significantly. Recent product innovations like Marqeta Flex aim to expand BNPL solutions in collaboration with major partners such as Klarna and Affirm, enhancing consumer payment options. However, its management team lacks experience with an average tenure of 1.6 years, which could present challenges in strategic execution.

• Get an in-depth perspective on Marqeta's performance by reading our balance sheet health report here.
• Explore Marqeta's analyst forecasts in our growth report.

Perfect (NYSE:PERF)

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

Overview: Perfect Corp. is an artificial intelligence software as a service company offering AI- and AR-powered solutions for the beauty, fashion, and skincare industries globally, with a market cap of approximately $193.51 million.

Operations: The company generates revenue of $58.45 million from its Internet Software & Services segment.

Market Cap: $193.51M

Perfect Corp., with a market cap of US$193.51 million, has recently become profitable and forecasts revenue growth of 12% to 14% for 2024. The company is debt-free, with short-term assets significantly exceeding its liabilities, indicating financial stability. Despite a low return on equity at 3.7%, Perfect Corp.'s high-quality earnings and innovative collaborations like the one with TIMEZ showcase its commitment to enhancing digital consumer experiences in the beauty and fashion sectors through AI and AR technologies. However, an inexperienced board may pose strategic challenges amidst these growth initiatives.

• Click here to discover the nuances of Perfect with our detailed analytical financial health report.
• Gain insights into Perfect's outlook and expected performance with our report on the company's earnings estimates.

Where To Now?

• Click this link to deep-dive into the 739 companies within our US Penny Stocks screener.
• 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.

Contemplating Other Strategies?

• 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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