Best 5 Penny Stocks With Great Financial Health (December 2024)

We used the advanced InvestingPro stock screener to filter out the best penny stocks based on a few key criteria. For this particular list, we focused on companies based in the US and assessed:

Current Price: Only companies with a price under $5.00 are typically considered to be ‘Penny Stocks’.

Fair Value Label (InvestingPro): Based on more than 14 financial models, having a FVL of ‘Bargain’, ‘Undervalued’ or ‘Fair’ ensures that the business fundamentals of these stocks point towards a solid financial foundation.

Overall Health Label: This must be ‘Excellent’, ‘Great’ or ‘Good’ at the time of choosing the stocks. As penny stocks can experience large swings of volatility, understanding that the business health is overall favorable helps to reduce investor nervousness.

By following the above criteria, we’ve identified penny stocks that are not only financially strong, but also poised for potentially significant growth in the coming months.

* Please note that due to the inherent volatility of penny stocks, the current price as listed is likely to fluctuate from the time of publication (which is seen above). Investors should make sure to perform additional due diligence before buying any of these stocks.

Current Price: $0.78

Fair Value Upside: 54.7%

BAB, Inc. franchises and licenses bagel and muffin retail units under the Big Apple Bagels (BAB), My Favorite Muffin (MFM), and SweetDuet (SD) trade names in the United States. Its BAB franchised brand includes daily baked bagels, flavored cream cheeses, premium coffees, gourmet bagel sandwiches, and other related products; and MFM brand comprises various freshly baked muffins and coffees, as well as units operating as My Favorite Muffin Your All Day Bakery Café features specialty bagel sandwiches and related products. The company’s SD brand includes frozen yogurt products. BAB, Inc. was founded in 1993 and is based in Deerfield, Illinois.

Current Price: $2.57

Fair Value Upside: 94.4%

Esperion Therapeutics, Inc., a pharmaceutical company, develops and commercializes medicines for the treatment of patients with elevated low density lipoprotein cholesterol. The company has license and collaboration agreements with Daiichi Sankyo Co. Ltd; Otsuka Pharmaceutical Co., Ltd; and Daiichi Sankyo Europe GmbH. Esperion Therapeutics, Inc. was incorporated in 2008 and is headquartered in Ann Arbor, Michigan.

Current Price: $4.05

Fair Value Upside: 36.5%

Table Trac, Inc. designs, develops, and sells casino information and management systems in the United States, Australia, Japan, the Caribbean, and Central and South America. The company offers Table Trac, an information and management system that automates and monitors the operations of casino table game operations, as well as adds functionality to related casino system modules for guest rewards and loyalty. It also provides system sales services comprising installation, custom casino system configuration, and training, as well as license and technical support services to casinos. The company was incorporated in 1995 and is based in Minnetonka, Minnesota.

Current Price: $4.30

Fair Value Upside: 20.1%

Winmill & Co. Incorporated, through its subsidiaries, provides investment management and distribution services for the mutual funds in the Midas Funds family. It also offers investment management services for the closed-end fund Foxby Corp. The company was founded in 1974 and is based in Rochester, New York.

Current Price: $0.26

Fair Value Upside: 51.0%

FullNet Communications, Inc., together with its subsidiaries, provides integrated communications services to individuals, businesses, organizations, educational institutions, and governmental agencies in the United States. It offers mass notification services using text messages and automated telephone calls; carrier-neutral equipment colocation services; internet access services; web hosting and related services; customized live help desk outsourcing services; and voice and data solutions. The company was formerly known as CEN-COM of Oklahoma, Inc. and changed its name to FullNet Communications, Inc. in December 1995. FullNet Communications, Inc. was incorporated in 1995 and is based in Oklahoma City, Oklahoma.

You can find the best penny stocks easily by using InvestingPro. Here are the steps:

• Head over to the InvestingPro Stock Screener tool.
• Add the following filters:

1. Current Price: Under $5.01.
2. Fair Value label (InvestingPro): Is One Of,  ‘Bargain’, ‘Undervalued’ or ‘Fair’.
3. Overall Health Label: Is One Of, ‘Excellent’, ‘Great’ or ‘Good’.

• Make sure that any further filtering for Sector, Geography, etc are as you want them.

You’ll then see the full list of all the companies falling in the desired screener filters’ range.

Penny stocks are typically shares of small companies that trade for less than $5 per share. They are known for their high volatility and potential for significant gains or losses.

Penny stocks are considered risky due to their low liquidity, high volatility, and limited publicly available information, making them susceptible to price manipulation and fraud.

Penny stocks can be bought on major exchanges like the NYSE or NASDAQ, and over-the-counter (OTC) markets like OTCBB or Pink Sheets.

Research is crucial; look for companies with strong fundamentals, growing industries, and solid management. Financial news, stock screeners, and analyst reports can be helpful.

Potential high returns, diversification of portfolio, and the opportunity to invest in emerging companies are some benefits of penny stocks.

Only invest money you can afford to lose, as penny stocks are speculative investments. A small percentage of your overall portfolio is recommended.

Yes, it is possible to make money, but it requires due diligence, careful selection, and a strategy to manage risks.

Common scams include pump-and-dump schemes, where misleading information is spread to inflate the stock price, followed by the perpetrators selling off their shares at a profit.

Beginners can invest in penny stocks, but it’s crucial to have a good understanding of the risks involved and to start small.

Low liquidity can lead to large price swings and difficulty buying or selling shares without impacting the stock price.

No, while many penny stocks trade on OTC markets, some are also listed on major exchanges like NASDAQ or NYSE if they meet certain listing requirements.

OTC stocks are traded over-the-counter rather than on formal exchanges and can include higher-priced stocks, whereas penny stocks are defined primarily by their low share price.

It is rare for penny stocks to pay dividends, as most of these companies reinvest profits into business growth. But it is still possible to find penny stocks that pay a dividend.

Scalping is a trading strategy aimed at profiting from small price changes, often over short periods, and it requires quick decision-making.

Low market capitalization, less trading volume, and limited information can contribute to high volatility.

Have a clear exit strategy, set target prices for selling, and remain disciplined. Avoid emotional reactions to market fluctuations.