Stock Analysis

US Penny Stocks To Watch In February 2025

Published

As the U.S. stock market grapples with mixed performances and attempts to recover from recent downturns, investors are increasingly looking for opportunities that might not be immediately obvious among the major indices. Penny stocks, often associated with smaller or newer companies, continue to capture attention due to their potential for growth and affordability. Despite being considered a relic of past market eras, these stocks can offer compelling opportunities when backed by strong financials, making them an interesting area for those willing to explore beyond the usual large-cap names.

Top 10 Penny Stocks In The United States

NameShare PriceMarket CapFinancial Health Rating
QuantaSing Group (NasdaqGM:QSG)$3.08$127.54M★★★★★★
BAB (OTCPK:BABB)$0.86403$6.28M★★★★★☆
Safe Bulkers (NYSE:SB)$3.73$392.77M★★★★☆☆
ZTEST Electronics (OTCPK:ZTST.F)$0.2799$10.3M★★★★★★
Imperial Petroleum (NasdaqCM:IMPP)$2.73$82.81M★★★★★★
Permianville Royalty Trust (NYSE:PVL)$1.44$47.52M★★★★★★
Golden Growers Cooperative (OTCPK:GGRO.U)$4.50$67.38M★★★★★★
Smith Micro Software (NasdaqCM:SMSI)$1.39$24.65M★★★★★☆
CBAK Energy Technology (NasdaqCM:CBAT)$0.86$77.35M★★★★★☆
PHX Minerals (NYSE:PHX)$4.14$155.17M★★★★★☆

Click here to see the full list of 721 stocks from our US Penny Stocks screener.

We'll examine a selection from our screener results.

Fuel Tech (NasdaqCM:FTEK)

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

Overview: Fuel Tech, Inc. offers boiler optimization, efficiency improvement, and air pollution control solutions to utility and industrial clients globally, with a market cap of $31.63 million.

Operations: Fuel Tech's revenue is derived from two main segments: Fuel Chem, generating $13.91 million, and Air Pollution Control, contributing $12.28 million.

Market Cap: $31.63M

Fuel Tech, Inc., with a market cap of US$31.63 million, recently secured air pollution control orders worth approximately US$1.6 million from new and existing U.S. clients, including a contract for its ULTRA system at a Midwest university. Despite being unprofitable, Fuel Tech has reduced losses by 50.4% annually over five years and forecasts earnings growth of 62.45% per year. The company is debt-free with sufficient cash runway exceeding three years based on current free cash flow levels, while its seasoned management and board enhance stability amidst the inherent volatility of penny stocks.

NasdaqCM:FTEK Debt to Equity History and Analysis as at Feb 2025

Village Farms International (NasdaqCM:VFF)

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

Overview: Village Farms International, Inc. operates in North America producing, marketing, and selling greenhouse-grown tomatoes, bell peppers, and cucumbers with a market cap of $88.04 million.

Operations: The company's revenue is primarily derived from its Canadian cannabis segment ($146.70 million), VF Fresh produce operations ($163.00 million), and U.S. cannabis activities ($17.84 million).

Market Cap: $88.04M

Village Farms International, with a market cap of US$88.04 million, faces challenges as it remains unprofitable with a negative return on equity of -17.37%. Despite trading at 79.8% below its estimated fair value and having reduced its debt to equity ratio from 33.5% to 16.6% over five years, the company has seen losses increase by 52% annually over the past five years. However, Village Farms benefits from short-term assets exceeding both long and short-term liabilities and maintains a cash runway for more than three years based on current free cash flow levels, providing some financial stability amidst volatility.

NasdaqCM:VFF Debt to Equity History and Analysis as at Feb 2025

Sera Prognostics (NasdaqGM:SERA)

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

Overview: Sera Prognostics, Inc. is a women's health diagnostic company focused on discovering, developing, and commercializing biomarker tests to improve pregnancy outcomes in the United States, with a market cap of $139.14 million.

Operations: The company generates revenue of $0.09 million from the development and commercialization of its medical diagnostic products.

Market Cap: $139.14M

Sera Prognostics, Inc., with a market cap of US$139.14 million, is a pre-revenue company in the women's health diagnostics sector. Despite its unprofitable status and negative return on equity of -59%, Sera has no debt and maintains significant cash reserves, ensuring a runway exceeding three years based on current free cash flow. Recent follow-on equity offerings raised nearly US$50 million, bolstering its financial position further. While its share price remains volatile, insider selling has been significant recently. The company's revenue is forecast to grow substantially at 127.45% annually, indicating potential future growth opportunities in the biotech space.

NasdaqGM:SERA Financial Position Analysis as at Feb 2025

Next Steps

  • Access the full spectrum of 721 US Penny Stocks by clicking on this link.
  • 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.
  • Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Interested In Other Possibilities?

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.

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com