Spero Therapeutics And 2 Other Promising Penny Stocks To Watch

Simply Wall St

In the last week, the market has been flat, but over the past 12 months, it has risen by 12%, with earnings forecast to grow by 14% annually. While traditional investments often focus on established companies, penny stocks—though an outdated term—still represent smaller or less-established firms that can offer significant value. By honing in on those with robust financials and a clear growth trajectory, investors can uncover promising opportunities among these lesser-known names.

Top 10 Penny Stocks In The United States

NameShare PriceMarket CapRewards & Risks
Perfect (NYSE:PERF)$1.83$180.27M✅ 3 ⚠️ 0 View Analysis >
WM Technology (NasdaqGS:MAPS)$1.04$178.27M✅ 4 ⚠️ 1 View Analysis >
Flexible Solutions International (NYSEAM:FSI)$4.361$53.75M✅ 1 ⚠️ 2 View Analysis >
TETRA Technologies (NYSE:TTI)$2.70$368.61M✅ 4 ⚠️ 2 View Analysis >
Imperial Petroleum (NasdaqCM:IMPP)$2.85$97.74M✅ 4 ⚠️ 2 View Analysis >
Table Trac (OTCPK:TBTC)$4.74$20.92M✅ 2 ⚠️ 2 View Analysis >
BAB (OTCPK:BABB)$0.83025$5.89M✅ 2 ⚠️ 3 View Analysis >
Lifetime Brands (NasdaqGS:LCUT)$3.17$76.43M✅ 3 ⚠️ 2 View Analysis >
New Horizon Aircraft (NasdaqCM:HOVR)$0.979$26.99M✅ 3 ⚠️ 5 View Analysis >
Greenland Technologies Holding (NasdaqCM:GTEC)$2.00$36.01M✅ 2 ⚠️ 5 View Analysis >

Click here to see the full list of 731 stocks from our US Penny Stocks screener.

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

Spero Therapeutics (NasdaqGS:SPRO)

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

Overview: Spero Therapeutics, Inc. is a clinical-stage biopharmaceutical company dedicated to developing novel treatments for multi-drug resistant bacterial infections and rare diseases in the United States, with a market cap of $38.13 million.

Operations: Spero Therapeutics generates revenue of $44.58 million from its novel treatments targeting multi-drug resistant bacterial infections.

Market Cap: $38.13M

Spero Therapeutics has recently gained attention due to the early termination of its phase III PIVOT-PO trial for tebipenem HBr, a potential breakthrough oral antibiotic for complicated urinary tract infections. Despite this promising development, the company faces financial challenges, including a recent Nasdaq deficiency notice due to its stock price falling below US$1.00 per share and an auditor's going concern warning. While Spero is debt-free with short-term assets exceeding liabilities, it remains unprofitable with volatile share prices and a management team that lacks extensive tenure. The company's cash runway extends beyond one year under current conditions.

NasdaqGS:SPRO Financial Position Analysis as at May 2025

Vir Biotechnology (NasdaqGS:VIR)

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

Overview: Vir Biotechnology, Inc. is a clinical-stage biopharmaceutical company focused on discovering and developing therapeutic products for serious infectious diseases, with a market cap of approximately $644.19 million.

Operations: The company generates revenue from its Pharmaceuticals segment, totaling $20.86 million.

Market Cap: $644.19M

Vir Biotechnology, Inc. faces challenges typical of penny stocks, with its recent revenue decline to US$3.03 million and increasing net losses. Despite being debt-free and having short-term assets exceeding liabilities, the company remains unprofitable with a negative return on equity of -55.34%. Its cash runway is sufficient for over two years if current cash flow trends persist. Vir's ongoing clinical trials for hepatitis treatments show potential but come with inherent risks in drug development. Recent insider selling may concern investors, although no significant shareholder dilution occurred last year. The management team is experienced but relatively new to the company.

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

Hyliion Holdings (NYSEAM:HYLN)

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

Overview: Hyliion Holdings Corp. designs and develops power generators for stationary and mobile applications, with a market cap of approximately $0.20 billion.

Operations: Hyliion Holdings Corp. does not have any reported revenue segments.

Market Cap: $199.77M

Hyliion Holdings Corp. exemplifies the challenges and opportunities of penny stocks, operating with minimal revenue at US$0.489 million for Q1 2025 and a net loss of US$17.25 million, yet maintaining a debt-free status with short-term assets significantly exceeding liabilities. The company recently announced strategic collaborations, including a memorandum of understanding with Alkhorayef Industries to scale its KARNO Power Modules in Saudi Arabia—a potential $1 billion opportunity aligned with Vision 2030 goals. Despite high share price volatility and ongoing unprofitability, Hyliion's cash reserves offer a runway exceeding one year under current conditions.

NYSEAM:HYLN Debt to Equity History and Analysis as at May 2025

Next Steps

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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