Stock Analysis

US Penny Stocks To Watch In February 2025

NasdaqGM:NVTS
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As the S&P 500 reaches record highs, major stock indexes in the United States continue to show resilience and growth. In this context, penny stocks—though often seen as relics of a bygone era—remain relevant for investors seeking opportunities in smaller or less-established companies. By focusing on those with strong financials and potential for growth, these stocks can offer value and stability.

Top 10 Penny Stocks In The United States

NameShare PriceMarket CapFinancial Health Rating
QuantaSing Group (NasdaqGM:QSG)$3.08$130.85M★★★★★★
Golden Growers Cooperative (OTCPK:GGRO.U)$4.50$67.38M★★★★★★
Imperial Petroleum (NasdaqCM:IMPP)$2.82$84.63M★★★★★★
ZTEST Electronics (OTCPK:ZTST.F)$0.2601$9.93M★★★★★★
CBAK Energy Technology (NasdaqCM:CBAT)$0.889$80.05M★★★★★☆
Smith Micro Software (NasdaqCM:SMSI)$1.40$25.9M★★★★★☆
PHX Minerals (NYSE:PHX)$4.18$153.67M★★★★★☆
BAB (OTCPK:BABB)$0.86825$6.26M★★★★★☆
Lifetime Brands (NasdaqGS:LCUT)$5.00$114.11M★★★★★☆
Information Services Group (NasdaqGM:III)$3.11$155.07M★★★★☆☆

Click here to see the full list of 709 stocks from our US Penny Stocks screener.

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

Navitas Semiconductor (NasdaqGM:NVTS)

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

Overview: Navitas Semiconductor Corporation specializes in designing, developing, and marketing gallium nitride power integrated circuits and related technologies for power conversion and charging, with a market cap of approximately $622.03 million.

Operations: The company generates revenue primarily from its semiconductors segment, which reported $91.38 million.

Market Cap: $622.03M

Navitas Semiconductor, with a market cap of US$622.03 million, is focused on advancing gallium nitride and silicon carbide technologies for power conversion. Despite being unprofitable and experiencing increased losses over the past five years, the company has sufficient cash runway for 2.8 years if current cash flow trends continue. Recent announcements highlight significant product innovations aimed at enhancing energy efficiency across major markets like AI data centers and EVs. However, insider selling has been significant recently, and earnings are forecast to decline by an average of 2.5% annually over the next three years despite revenue growth expectations of 19.22% per year.

NasdaqGM:NVTS Financial Position Analysis as at Feb 2025
NasdaqGM:NVTS Financial Position Analysis as at Feb 2025

AbCellera Biologics (NasdaqGS:ABCL)

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

Overview: AbCellera Biologics Inc. focuses on creating an engine for antibody drug discovery and development, with a market cap of approximately $1.01 billion.

Operations: The company's revenue comes from the discovery and development of antibodies, generating $32.96 million.

Market Cap: $1.01B

AbCellera Biologics, valued at US$1.01 billion, is focused on antibody drug discovery and development. Despite being unprofitable with increasing losses over the past five years, the company maintains a robust financial position with short-term assets significantly exceeding both short and long-term liabilities. Recent strategic collaborations, such as the expanded partnership with AbbVie for T-cell engagers in oncology, offer potential revenue streams through upfront payments and future royalties. While earnings are forecast to decline by 9.2% annually over three years, revenue is expected to grow by 15.85% per year, reflecting optimism in its business model's scalability and innovation capabilities.

NasdaqGS:ABCL Debt to Equity History and Analysis as at Feb 2025
NasdaqGS:ABCL Debt to Equity History and Analysis as at Feb 2025

Design Therapeutics (NasdaqGS:DSGN)

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

Overview: Design Therapeutics, Inc. is a biopharmaceutical company focused on researching, designing, developing, and commercializing small molecule therapeutic drugs for genetic diseases in the United States with a market cap of $233.84 million.

Operations: Design Therapeutics, Inc. has not reported any revenue segments.

Market Cap: $233.84M

Design Therapeutics, Inc., with a market cap of US$233.84 million, is a pre-revenue biopharmaceutical company focused on genetic diseases. Despite its current unprofitability and negative return on equity (-18.93%), the company has a stable financial position, being debt-free and having short-term assets of US$257.2 million that exceed liabilities significantly. Its cash runway extends beyond three years under stable conditions, providing some financial security amidst high share price volatility and an anticipated 10.4% annual decline in earnings over the next three years. Recently added to the NASDAQ Biotechnology Index, it benefits from experienced management and board members.

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

Key Takeaways

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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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About NasdaqGM:NVTS

Navitas Semiconductor

Designs, develops, and markets gallium nitride power integrated circuits, silicon carbide, associated high-speed silicon system controllers, and digital isolators used in power conversion and charging.

Flawless balance sheet slight.