Over the last 7 days, the United States market has risen 1.7%, and over the past year, it has climbed 25%, with earnings forecasted to grow by 19% annually. In light of these favorable market conditions, identifying stocks with strong financials becomes crucial for investors seeking value and growth potential. Penny stocks—often smaller or newer companies—may seem like a throwback term, but they continue to offer intriguing opportunities when backed by solid fundamentals, making them worthy of attention for those looking at under-the-radar investments.

Let's take a closer look at a couple of our picks from the screened companies.

Jerash Holdings (US) (JRSH)

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

Overview: Jerash Holdings (US), Inc., with a market cap of $57.15 million, operates through its subsidiaries to manufacture and export customized, ready-made sportswear and outerwear using knitted fabrics.

Operations: Jerash Holdings (US) does not report any specific revenue segments.

Market Cap: $57.15M

Jerash Holdings (US), Inc. has shown recent profitability with a net income of US$3.54 million for the year ending March 31, 2026, compared to a loss the previous year. Despite this turnaround, its earnings have declined by an average of 46.7% annually over the past five years. The company maintains more cash than total debt and has short-term assets exceeding liabilities, indicating financial stability. However, its Return on Equity is low at 5.6%, and its dividend yield of 4.47% is not well covered by free cash flows, suggesting caution for income-focused investors in penny stocks.

Whitehawk Therapeutics (WHWK)

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

Overview: Whitehawk Therapeutics, Inc. is a clinical-stage company focused on developing oncology therapeutics to understand tumor biology for cancer treatments, with a market cap of $218.58 million.

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

Market Cap: $218.58M

Whitehawk Therapeutics, Inc. is a pre-revenue clinical-stage company with a market cap of US$218.58 million, focused on developing oncology therapeutics. Despite being unprofitable and facing significant insider selling recently, the company is debt-free and has sufficient short-term assets to cover liabilities. Whitehawk's management team and board have experienced tenure, but earnings are forecast to decline over the next three years. Recent developments include promising data for their next-generation antibody-drug conjugates targeting SEZ6 and MUC16 in cancer treatments, with upcoming Phase 1 trials planned for HWK-206 in small cell lung cancer by late 2026.

Zevia PBC (ZVIA)

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

Overview: Zevia PBC develops, markets, sells, and distributes zero sugar beverages in the United States and Canada with a market cap of approximately $99.31 million.

Operations: The company generates revenue primarily from its non-alcoholic beverages segment, totaling $169.33 million.

Market Cap: $99.31M

Zevia PBC, with a market cap of US$99.31 million, has experienced leadership changes as Alexandre Ruberti takes over as CEO following Amy Taylor's resignation. The company raised earnings guidance for Q2 2026, expecting net sales at the high end of its previous range. Despite being unprofitable and having a volatile share price recently, Zevia has reduced losses by 15.6% annually over five years and maintains a debt-free position with sufficient cash runway exceeding three years. The board is seasoned; however, the management team lacks extensive tenure, indicating recent restructuring efforts to drive future growth.

Where To Now?

• Embark on your investment journey to our 336 US Penny Stocks selection here.
• Looking For Alternative Opportunities? We've found 9 US stocks that are forecast to pay a dividend yeild of over 6% next year. See the full list for free.

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.