3 ASX Penny Stocks To Watch With Market Caps Under A$400M

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The Australian market has recently experienced a downturn, with the ASX200 dropping to its lowest level since September, largely driven by declines in the Financials and Health Care sectors. In such fluctuating conditions, investors often seek opportunities that offer both value and growth potential. Penny stocks, despite being an older term, continue to capture attention due to their affordability and potential for significant returns when backed by strong financials.

Top 10 Penny Stocks In Australia

Name

Share Price

Market Cap

Financial Health Rating

Embark Early Education (ASX:EVO)

A$0.775

A$144.03M

★★★★☆☆

LaserBond (ASX:LBL)

A$0.61

A$72.09M

★★★★★★

MaxiPARTS (ASX:MXI)

A$1.895

A$104.82M

★★★★★★

Helloworld Travel (ASX:HLO)

A$1.805

A$281.08M

★★★★★★

Austin Engineering (ASX:ANG)

A$0.525

A$322.48M

★★★★★☆

Navigator Global Investments (ASX:NGI)

A$1.72

A$828.23M

★★★★★☆

Joyce (ASX:JYC)

A$4.35

A$124.48M

★★★★★★

Atlas Pearls (ASX:ATP)

A$0.14

A$63.17M

★★★★★★

Perenti (ASX:PRN)

A$1.175

A$1.08B

★★★★★★

SRG Global (ASX:SRG)

A$1.12

A$682.42M

★★★★★★

Click here to see the full list of 1,033 stocks from our ASX Penny Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

Dusk Group

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

Overview: Dusk Group Limited is an Australian retailer specializing in scented and unscented candles, home decor, home fragrances, and gift solutions, with a market cap of A$73.79 million.

Operations: The company generates revenue from retail sales in the home fragrances and accessories segment, amounting to A$126.73 million.

Market Cap: A$73.79M

Dusk Group Limited, with a market cap of A$73.79 million, faces challenges as its earnings have declined by 9.5% annually over the past five years and experienced a significant drop in net income to A$4.27 million from A$11.59 million last year. Despite being debt-free and having high-quality earnings, its return on equity is low at 11.4%, and profit margins have decreased to 3.4%. The company is trading below estimated fair value but has seen negative growth compared to industry averages. Recent activities include plans for store expansions ahead of the Christmas period despite delisting from OTC Equity due to inactivity.

ASX:DSK Financial Position Analysis as at Nov 2024
ASX:DSK Financial Position Analysis as at Nov 2024

IVE Group

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

Overview: IVE Group Limited operates in the marketing sector in Australia, with a market capitalization of A$319.07 million.