The United States market remained flat over the last week, yet it has seen a notable 20% rise over the past year, with earnings expected to grow by 18% annually in the coming years. While penny stocks might seem like an outdated term, they continue to represent a viable investment area for those seeking affordability and growth potential. By focusing on smaller or newer companies with strong financials, investors can uncover opportunities that may offer both stability and upside potential.

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

TROOPS (TROO)

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

Overview: TROOPS, Inc., along with its subsidiaries, offers consultancy services for insurance products across Hong Kong, Australia, and the People’s Republic of China, with a market cap of $265.09 million.

Operations: The company's revenue is derived from several segments, including Money Lending Services ($2.17 billion), Property Lease and Management ($1.38 billion), Advisory and Referral Services ($549 million), Application, Technology and Services ($137 million), and Consultancy Services for Insurance Product ($12.86 million).

Market Cap: $265.09M

TROOPS, Inc. operates in the consultancy services sector with a market cap of US$265.09 million and diverse revenue streams, including significant contributions from money lending (US$2.17 billion) and property management (US$1.38 billion). Despite being unprofitable, it has reduced losses over the past five years by 41.8% annually and maintains a cash runway exceeding three years due to positive free cash flow. The company is debt-free, though its short-term liabilities exceed assets by US$1.3 million. Recent earnings revealed increased sales to US$17.1 million but also a widened net loss of US$27.91 million for 2025.

Waldencast (WALD)

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

Overview: Waldencast plc operates in the beauty and wellness industry across several regions including the United States, Canada, Europe, the Middle East, India, Australia, and New Zealand with a market cap of $214.19 million.

Operations: The company's revenue is derived from two primary segments: Obagi, generating $161.63 million, and Milk Makeup, contributing $110.44 million.

Market Cap: $214.19M

Waldencast plc, with a market cap of US$214.19 million, operates in the beauty and wellness sector through its Obagi and Milk Makeup segments. Despite being unprofitable with growing losses over five years, it maintains a cash runway exceeding three years due to positive free cash flow growth. Recent developments include FDA approval for Obagi's saypha ChIQ injectable gel, enhancing its U.S. market presence in dermal fillers. Executive changes are underway as CEO Michel Brousset plans to depart post-reinvestment agreement closure. The company has experienced increased share price volatility recently but remains undiluted over the past year.

Expensify (EXFY)

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

Overview: Expensify, Inc. offers a cloud-based expense management software platform serving both the United States and international markets, with a market cap of $172.62 million.

Operations: The company's revenue primarily comes from its Internet Software & Services segment, totaling $140.00 million.

Market Cap: $172.62M

Expensify, Inc., with a market cap of US$172.62 million, operates in the cloud-based expense management sector. Despite being unprofitable and not expected to achieve profitability in the next three years, it has a cash runway exceeding three years due to positive free cash flow and is debt-free. The company recently enhanced its platform with consolidated travel billing and expanded AI capabilities through Concierge AI, improving user experience and operational efficiency. However, Expensify faced challenges as it was dropped from multiple Russell indices and received a Nasdaq deficiency letter for its low share price but remains focused on compliance strategies like potential reverse stock splits.

Summing It All Up

• Unlock our comprehensive list of 328 US Penny Stocks by clicking here.
• Want To Explore Some Alternatives? We've found 10 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.