February 2025 US Penny Stocks With Promising Prospects

The U.S. stock market has been showing resilience, with the S&P 500 recently reaching an all-time high and major indices nearing record levels. In this climate, penny stocks—though often overlooked—can still offer intriguing opportunities for investors interested in smaller or newer companies. When backed by strong financials, these stocks may present a compelling mix of value and growth potential, making them worthy of consideration for those seeking promising prospects in the market.

Top 10 Penny Stocks In The United States

Name	Share Price	Market Cap	Financial Health Rating
BAB (OTCPK:BABB)	$0.8625	$6.39M	★★★★★★
QuantaSing Group (NasdaqGM:QSG)	$3.08	$127.27M	★★★★★★
ZTEST Electronics (OTCPK:ZTST.F)	$0.2698	$9.16M	★★★★★★
Imperial Petroleum (NasdaqCM:IMPP)	$2.79	$84.63M	★★★★★★
Permianville Royalty Trust (NYSE:PVL)	$1.4389	$46.53M	★★★★★★
Golden Growers Cooperative (OTCPK:GGRO.U)	$4.50	$67.38M	★★★★★★
Smith Micro Software (NasdaqCM:SMSI)	$1.46	$24.65M	★★★★★☆
PHX Minerals (NYSE:PHX)	$4.10	$154.8M	★★★★★☆
CBAK Energy Technology (NasdaqCM:CBAT)	$0.89	$78.41M	★★★★★☆
Safe Bulkers (NYSE:SB)	$3.69	$383.33M	★★★★☆☆

Click here to see the full list of 708 stocks from our US Penny Stocks screener.

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

Alector (NasdaqGS:ALEC)

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

Overview: Alector, Inc. is a clinical-stage biopharmaceutical company focused on developing therapies for neurodegenerative diseases, with a market cap of approximately $166.49 million.

Operations: The company's revenue is derived entirely from its biotechnology segment, amounting to $61.51 million.

Market Cap: $166.49M

Alector, Inc., with a market cap of approximately US$166.49 million, has faced challenges recently, notably the failure of its AL002 drug in a Phase 2 trial for Alzheimer's disease. Despite being unprofitable and experiencing significant insider selling, Alector maintains a robust cash position of US$457.2 million, providing financial runway through 2026. The company is debt-free and strategically focusing on its progranulin-elevating programs while reducing workforce by 17% to align resources efficiently. Revenue is forecasted to grow annually by 14.43%, but profitability remains elusive in the near term as it continues developing novel therapies for neurodegenerative diseases.

• Dive into the specifics of Alector here with our thorough balance sheet health report.
• Learn about Alector's future growth trajectory here.

ALX Oncology Holdings (NasdaqGS:ALXO)

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

Overview: ALX Oncology Holdings Inc. is a clinical-stage immuno-oncology company dedicated to developing cancer therapies in the United States, with a market cap of $58.02 million.

Operations: ALX Oncology Holdings Inc. does not report any revenue segments as it is focused on developing cancer therapies in the clinical stage.

Market Cap: $58.02M

ALX Oncology Holdings Inc., with a market cap of US$58.02 million, remains pre-revenue as it advances its investigational CD47-blocker evorpacept in clinical trials. Recent positive data from the ASPEN-06 Phase 2 trial highlights durable responses in HER2-positive gastric cancer, earning FDA Fast Track and Orphan Drug Designations. Despite high share price volatility and an inexperienced management team, ALX maintains a strong cash position with short-term assets of US$155.9 million exceeding liabilities, providing over a year’s runway even if cash flow declines continue at historical rates. Recent leadership changes may influence strategic direction moving forward.

• Click to explore a detailed breakdown of our findings in ALX Oncology Holdings' financial health report.
• Gain insights into ALX Oncology Holdings' outlook and expected performance with our report on the company's earnings estimates.

Blend Labs (NYSE:BLND)

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

Overview: Blend Labs, Inc. provides cloud-based software platform solutions for financial services firms in the United States, with a market cap of approximately $959.74 million.

Operations: The company's revenue is derived from two segments: Blend Platform, contributing $111.51 million, and Title, generating $45.20 million.

Market Cap: $959.74M

Blend Labs, Inc. holds a market cap of approximately US$959.74 million and derives revenue from its Blend Platform (US$111.51 million) and Title segments (US$45.20 million). Despite being unprofitable with a negative return on equity, the company benefits from stable weekly volatility and no significant shareholder dilution over the past year. Recent strategic moves include a partnership with PHH Mortgage to enhance home lending efficiency and the appointment of Srini Venkatramani as Head of Product, Technology, and Customer Operations to drive growth in digital banking. The company is debt-free with short-term assets covering both short- and long-term liabilities comfortably.

• Take a closer look at Blend Labs' potential here in our financial health report.
• Understand Blend Labs' earnings outlook by examining our growth report.

Taking Advantage

• Unlock more gems! Our US Penny Stocks screener has unearthed 705 more companies for you to explore.Click here to unveil our expertly curated list of 708 US Penny Stocks.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
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Seeking Other Investments?

• 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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