May 2025's Promising Penny Stocks To Consider

Simply Wall St

The United States market has shown positive momentum, climbing 3.9% in the last week and up 12% over the past year, with earnings expected to grow by 14% annually. For investors looking beyond established giants, penny stocks—often representing smaller or newer companies—can provide intriguing opportunities. Despite being a somewhat outdated term, these stocks continue to attract interest for their potential value and growth; this article highlights three such stocks that combine financial strength with promising prospects.

Top 10 Penny Stocks In The United States

NameShare PriceMarket CapRewards & Risks
Safe Bulkers (NYSE:SB)$3.55$358.57M✅ 3 ⚠️ 3 View Analysis >
IDenta (OTCPK:IDTA)$0.75$2.83M✅ 2 ⚠️ 3 View Analysis >
Tuya (NYSE:TUYA)$2.57$1.39B✅ 3 ⚠️ 3 View Analysis >
WM Technology (NasdaqGS:MAPS)$1.12$188.36M✅ 4 ⚠️ 1 View Analysis >
Kidoz (OTCPK:KDOZ.F)$0.0251$26.8M✅ 3 ⚠️ 2 View Analysis >
Flexible Solutions International (NYSEAM:FSI)$4.48$56.28M✅ 4 ⚠️ 2 View Analysis >
Imperial Petroleum (NasdaqCM:IMPP)$2.65$94.3M✅ 3 ⚠️ 2 View Analysis >
BAB (OTCPK:BABB)$0.82$6.1M✅ 2 ⚠️ 3 View Analysis >
Lifetime Brands (NasdaqGS:LCUT)$3.64$72.4M✅ 3 ⚠️ 2 View Analysis >
CBAK Energy Technology (NasdaqCM:CBAT)$0.904$80.94M✅ 4 ⚠️ 1 View Analysis >

Click here to see the full list of 753 stocks from our US Penny Stocks screener.

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

CureVac (NasdaqGM:CVAC)

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

Overview: CureVac N.V. is a biopharmaceutical company specializing in the development of transformative medicines using messenger ribonucleic acid (mRNA), with a market cap of approximately $781.29 million.

Operations: CureVac generates revenue primarily from the discovery and development of biotechnological applications, amounting to €535.18 million.

Market Cap: $781.29M

CureVac N.V., with a market cap of approximately $781.29 million, has transitioned to profitability over the past year, reporting significant revenue growth from €53.76 million to €535.18 million and net income of €162.19 million for 2024. The company is debt-free and its short-term assets comfortably exceed both its short- and long-term liabilities, indicating strong financial health. Recent FDA clearance for a Phase 1 clinical study in lung cancer highlights ongoing innovation in mRNA-based therapies, potentially enhancing future prospects despite forecasts suggesting earnings may decline by an average of 26% annually over the next three years.

NasdaqGM:CVAC Revenue & Expenses Breakdown as at May 2025

Sana Biotechnology (NasdaqGS:SANA)

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

Overview: Sana Biotechnology, Inc. is a biotechnology company that focuses on utilizing engineered cells as medicines in the United States, with a market cap of approximately $410.51 million.

Operations: Sana Biotechnology, Inc. currently does not have any reported revenue segments.

Market Cap: $410.51M

Sana Biotechnology, Inc., with a market cap of approximately US$410.51 million, is a pre-revenue biotech firm focused on engineered cell therapies. Despite having no significant revenue streams, the company has managed to reduce its net loss from US$107.48 million to US$49.39 million year-over-year for Q1 2025. Sana remains debt-free and recently raised capital through a follow-on equity offering of US$119 million, potentially extending its cash runway beyond the current eight months forecasted based on free cash flow estimates. However, legal challenges and high share price volatility pose risks for investors in this penny stock space.

NasdaqGS:SANA Debt to Equity History and Analysis as at May 2025

NIO (NYSE:NIO)

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

Overview: NIO Inc. is a company that designs, develops, manufactures, and sells smart electric vehicles in China, Europe, and internationally with a market cap of approximately $8.90 billion.

Operations: NIO generates its revenue primarily from its Auto Manufacturers segment, which accounted for CN¥65.73 billion.

Market Cap: $8.9B

NIO Inc., with a market cap of US$8.90 billion, is experiencing significant growth in vehicle deliveries, reporting a 53% year-over-year increase in April 2025. Despite being unprofitable and not expected to achieve profitability soon, its revenue is forecasted to grow by 18.4% annually. NIO's seasoned management and strategic partnerships, such as the collaboration with Flexcompute for aerodynamic optimization, enhance its competitive edge in the electric vehicle sector. The company has more cash than debt but faces challenges like negative return on equity and insufficient short-term asset coverage for liabilities. Recent equity offerings have bolstered its financial position without significant shareholder dilution.

NYSE:NIO Revenue & Expenses Breakdown as at May 2025

Turning Ideas Into Actions

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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