Stock Analysis

3 US Penny Stocks With Market Caps Under $900M To Consider

NYSE:YALA
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As of February 2025, the U.S. stock market has been showing resilience, with major indexes like the S&P 500 closing just shy of record highs and posting weekly gains. Amidst this backdrop, investors are increasingly interested in exploring diverse investment opportunities that can offer both stability and potential growth. Penny stocks, while often associated with risk due to their lower price points and smaller market capitalizations, can still present valuable opportunities when they are backed by solid financials and clear growth prospects. This article highlights three penny stocks that stand out for their strong balance sheets and potential for future gains.

Top 10 Penny Stocks In The United States

NameShare PriceMarket CapFinancial Health Rating
QuantaSing Group (NasdaqGM:QSG)$3.08$127.27M★★★★★★
BAB (OTCPK:BABB)$0.88$6.39M★★★★★★
Imperial Petroleum (NasdaqCM:IMPP)$2.79$84.63M★★★★★★
ZTEST Electronics (OTCPK:ZTST.F)$0.249$9.16M★★★★★★
Permianville Royalty Trust (NYSE:PVL)$1.41$46.53M★★★★★★
Golden Growers Cooperative (OTCPK:GGRO.U)$4.50$67.38M★★★★★★
Smith Micro Software (NasdaqCM:SMSI)$1.39$24.65M★★★★★☆
PHX Minerals (NYSE:PHX)$4.13$154.8M★★★★★☆
CBAK Energy Technology (NasdaqCM:CBAT)$0.8718$78.41M★★★★★☆
Safe Bulkers (NYSE:SB)$3.59$383.33M★★★★☆☆

Click here to see the full list of 702 stocks from our US Penny Stocks screener.

Let's explore several standout options from the results in the screener.

Advantage Solutions (NasdaqGS:ADV)

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

Overview: Advantage Solutions Inc. offers business solutions to consumer goods manufacturers and retailers across North America and internationally, with a market cap of $869.24 million.

Operations: Advantage Solutions does not report specific revenue segments.

Market Cap: $869.24M

Advantage Solutions Inc., with a market cap of US$869.24 million, is navigating challenges typical for penny stocks, including high net debt to equity ratio (161%) and unprofitability. Despite this, it maintains a positive cash runway for over three years and has seen reduced debt levels over five years. The company’s short-term assets exceed its liabilities by US$462.3 million, providing some financial cushion. Recent executive changes include the appointment of George Johnson as chief workforce operations officer to enhance workforce strategy across 100,000+ retail stores served annually, potentially improving operational efficiency despite ongoing insider selling concerns.

NasdaqGS:ADV Financial Position Analysis as at Feb 2025
NasdaqGS:ADV Financial Position Analysis as at Feb 2025

Aeva Technologies (NasdaqGS:AEVA)

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

Overview: Aeva Technologies, Inc. specializes in the design, development, manufacture, and sale of LiDAR sensing systems and related software solutions for perception and autonomy across multiple regions worldwide, with a market cap of approximately $227.92 million.

Operations: Aeva Technologies generates revenue from its Industrial Automation & Controls segment, which amounts to $7.98 million.

Market Cap: $227.92M

Aeva Technologies, with a market cap of US$227.92 million, is focused on LiDAR sensing systems and has been added to the NASDAQ Composite Index. Despite being unprofitable and having increased losses over the past five years, Aeva is debt-free and its short-term assets significantly exceed liabilities. The company recently unveiled the Atlas Ultra 4D LiDAR sensor at CES 2025, designed for advanced autonomous driving applications. While revenue from its Industrial Automation & Controls segment stands at US$7.98 million, analysts forecast significant revenue growth of 81.48% annually despite expected earnings decline over the next three years.

NasdaqGS:AEVA Financial Position Analysis as at Feb 2025
NasdaqGS:AEVA Financial Position Analysis as at Feb 2025

Yalla Group (NYSE:YALA)

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

Overview: Yalla Group Limited operates a social networking and gaming platform primarily in the Middle East and North Africa region, with a market cap of approximately $673.60 million.

Operations: The company generates revenue of $329.77 million from its social networking and entertainment platform.

Market Cap: $673.6M

Yalla Group, with a market cap of US$673.60 million, operates a social networking and gaming platform in the MENA region. The company reported revenue of US$329.77 million and has been growing earnings faster than its industry peers, achieving 32.3% growth over the past year compared to the industry's 11.6%. Yalla is debt-free and maintains high-quality earnings with improved net profit margins from last year at 40.7%. Its short-term assets significantly exceed liabilities, providing financial stability without dilution of shareholder value recently. Despite trading at a substantial discount to estimated fair value, its return on equity remains low at 19.6%.

NYSE:YALA Revenue & Expenses Breakdown as at Feb 2025
NYSE:YALA Revenue & Expenses Breakdown as at Feb 2025

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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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