Stock Analysis

3 US Penny Stocks To Consider In February 2025

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As of February 2025, the U.S. stock market is experiencing volatility, with major indices like the Dow and S&P 500 closing lower due to rising treasury yields following a hotter-than-expected inflation report. For investors willing to explore beyond established giants, penny stocks—typically smaller or newer companies—remain an intriguing investment option despite being considered somewhat outdated. These stocks can offer unique opportunities when backed by strong financial health, potentially leading to significant returns in an unpredictable market landscape.

Top 10 Penny Stocks In The United States

NameShare PriceMarket CapFinancial Health Rating
BAB (OTCPK:BABB)$0.866875$6.32M★★★★★★
QuantaSing Group (NasdaqGM:QSG)$3.08$130.85M★★★★★★
BTCS (NasdaqCM:BTCS)$2.69$47.02M★★★★★★
Imperial Petroleum (NasdaqCM:IMPP)$2.94$90.69M★★★★★★
Permianville Royalty Trust (NYSE:PVL)$1.40$47.52M★★★★★★
Golden Growers Cooperative (OTCPK:GGRO.U)$4.50$67.38M★★★★★★
CBAK Energy Technology (NasdaqCM:CBAT)$0.8994$79.83M★★★★★☆
Smith Micro Software (NasdaqCM:SMSI)$1.39$25.9M★★★★★☆
PHX Minerals (NYSE:PHX)$4.13$151.42M★★★★★☆
Safe Bulkers (NYSE:SB)$3.58$385.47M★★★★☆☆

Click here to see the full list of 712 stocks from our US Penny Stocks screener.

We're going to check out a few of the best picks from our screener tool.

Great Elm Group (NasdaqGS:GEG)

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

Overview: Great Elm Group, Inc. is an asset management company that operates in credit, real estate, specialty finance, and other alternative strategies with a market cap of $53.85 million.

Operations: The company generates revenue from its Investment Management segment, amounting to $19.20 million.

Market Cap: $53.85M

Great Elm Group has shown notable financial improvement, becoming profitable in the last year with net income reaching US$1.18 million for Q2 2025 compared to a loss previously. The company has also increased its quarterly dividend by 5.7% and executed a significant share buyback, repurchasing 13.5% of outstanding shares for US$7.39 million, indicating confidence in its valuation and future prospects. While it holds more cash than debt and maintains stable short-term asset coverage, challenges remain with negative operating cash flow impacting debt coverage capabilities despite reduced debt-to-equity ratios over time.

NasdaqGS:GEG Financial Position Analysis as at Feb 2025

D-Market Elektronik Hizmetler ve Ticaret (NasdaqGS:HEPS)

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

Overview: D-Market Elektronik Hizmetler ve Ticaret A.S. operates as an e-commerce platform in Turkey, with a market cap of approximately $1.16 billion.

Operations: The company generates revenue from its e-commerce operations, totaling TRY 39.91 billion.

Market Cap: $1.16B

D-Market Elektronik Hizmetler ve Ticaret has undergone significant changes, including a major acquisition by Kaspi.kz, acquiring a 66.35% stake for $1.12 billion. Recent amendments to company bylaws have streamlined governance by removing share class distinctions and altering voting rights, potentially simplifying shareholder dynamics. Despite being unprofitable with negative return on equity, the company maintains a strong cash position exceeding its total debt and short-term assets covering liabilities. Additionally, its strategic partnership with Vodafone Turkiye aims to enhance customer experience through integrated e-commerce solutions, potentially expanding its customer base in the competitive Turkish market.

NasdaqGS:HEPS Financial Position Analysis as at Feb 2025

SmartRent (NYSE:SMRT)

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

Overview: SmartRent, Inc. is an enterprise real estate technology company offering management software and applications to rental property stakeholders globally, with a market cap of approximately $265.75 million.

Operations: The company's revenue is primarily derived from its Electronic Security Devices segment, totaling $199.77 million.

Market Cap: $265.75M

SmartRent, Inc. has shown resilience in the penny stock arena with a market cap of approximately US$265.75 million and revenue primarily from its Electronic Security Devices segment totaling US$199.77 million. Recent executive changes, including the appointment of Michael Shane Paladin as CEO and Ana Pinczuk to the Board, signal strategic leadership shifts aimed at driving growth and innovation. The company remains debt-free with sufficient cash runway for over three years based on current free cash flow, despite being unprofitable with negative return on equity (-8.36%). SmartRent's ongoing investments in Smart Operations Solutions highlight its commitment to enhancing property management efficiency within the rental housing industry.

NYSE:SMRT Revenue & Expenses Breakdown as at Feb 2025

Taking Advantage

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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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