In the last week, the market has stayed flat, though it is up 18% over the past year and earnings are forecast to grow by 18% annually. Penny stocks may be a throwback term, but the opportunities they represent are far from old news. These smaller or newer companies can offer growth potential at lower price points, especially when backed by strong financial health and solid fundamentals.

Here's a peek at a few of the choices from the screener.

Odysight.ai (ODYS)

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

Overview: Odysight.ai Inc. develops, produces, and markets visual monitoring AI solutions across Israel, the United States, and internationally with a market cap of $70.13 million.

Operations: The company's revenue is primarily derived from its Vision-Based Platform Solutions, amounting to $1.03 billion.

Market Cap: $70.13M

Odysight.ai Inc. is navigating the penny stock landscape with strategic partnerships and technological advancements, despite being pre-revenue with sales of US$0.082 million in Q1 2026 and a market cap of US$70.13 million. Recent developments include a purchase order from Elbit Systems for its AI-based Prognostics and Health Management system, potentially expanding its footprint within the Israeli Ministry of Defense. Additionally, collaborations with Honeywell Aerospace and the U.S. Navy highlight Odysight.ai's focus on integrating AI-driven visual monitoring solutions across critical defense platforms, positioning it for potential growth opportunities in international markets.

Zhihu (ZH)

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

Overview: Zhihu Inc. operates an online content community in China and has a market cap of approximately $248.14 million.

Operations: The company generates revenue primarily from its Internet Information Providers segment, which accounted for CN¥2.67 billion.

Market Cap: $248.14M

Zhihu Inc. is navigating the penny stock market with a market cap of approximately US$248.14 million, primarily generating revenue from its Internet Information Providers segment, which brought in CN¥2.67 billion. Despite being unprofitable and not expected to achieve profitability within the next three years, Zhihu has strategically commenced a share repurchase program authorized by shareholders to buy back up to 25,461,758 shares or ADSs. This move aims to enhance net asset value and earnings per share while maintaining financial stability with no debt and sufficient cash runway for over three years based on current free cash flow.

Elite Pharmaceuticals (ELTP)

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

Overview: Elite Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on developing, manufacturing, and selling oral controlled-release and generic pharmaceuticals with a market cap of $391.57 million.

Operations: The company generates revenue primarily from its Abbreviated New Drug Applications (ANDA) segment, which amounts to $148.87 million.

Market Cap: $391.57M

Elite Pharmaceuticals has demonstrated significant growth, with revenue reaching US$148.87 million for the year ended March 31, 2026, up from US$84.04 million the previous year. The company achieved profitability with a net income of US$44.87 million compared to a net loss previously reported. Elite's financial health is robust, with short-term assets exceeding liabilities and debt well-covered by operating cash flow at a very large rate of 783%. Recent positive bioequivalence study results for an anticonvulsant generic product could bolster future prospects as they prepare an ANDA filing with the FDA.

Summing It All Up

• Click through to start exploring the rest of the 321 US Penny Stocks now.
• Want To Explore Some Alternatives? Trump has pledged to "unleash" American oil and gas and these 23 US stocks have developments that are poised to benefit.

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.