Over the last 7 days, the United States market has dropped 2.0%, but it is up 15% over the past year, with earnings forecast to grow by 17% annually. For those looking to invest in smaller or newer companies, penny stocks — despite the name's vintage feel — can still offer surprising value. In this article, we explore several penny stocks that demonstrate financial strength and could potentially offer long-term growth opportunities.

We're going to check out a few of the best picks from our screener tool.

OraSure Technologies (OSUR)

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

Overview: OraSure Technologies, Inc. develops, manufactures, markets, sells, and distributes diagnostic products and specimen collection devices globally with a market cap of $260.94 million.

Operations: The company's revenue is derived from its Diagnostics and Molecular Solutions segment, which generated $113.02 million.

Market Cap: $260.94M

OraSure Technologies, Inc., with a market cap of US$260.94 million, is debt-free and has recently received FDA Emergency Use Authorization for its OraQuick Ebola 2.0 Rapid Antigen Test, enhancing its diagnostic portfolio. Despite being unprofitable and reporting increased losses over the past five years, the company maintains strong short-term assets exceeding liabilities. Recent developments include FDA clearance for the Colli-Pee™•Dx Urine Collection Kit, expanding access to STI testing through at-home sample collection. The management team is experienced with an average tenure of four years, and no significant shareholder dilution occurred in the past year.

Castellum (CTM)

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

Overview: Castellum, Inc. is a technology company operating in the United States and internationally, with a market cap of $61.55 million.

Operations: The company's revenue is derived entirely from its Information Technology, Electronic Warfare, Information Warfare & Cybersecurity segment, totaling $55.49 million.

Market Cap: $61.55M

Castellum, Inc., with a market cap of US$61.55 million, is strategically positioned in the technology sector with a focus on IT and cybersecurity. The company recently secured a significant contract through its joint venture for U.S. Navy logistics modernization, potentially enhancing future revenue streams. Despite being unprofitable, Castellum has reduced losses over five years and maintains positive free cash flow, ensuring a cash runway exceeding three years. Short-term assets significantly surpass liabilities, and the company remains debt-free with no recent shareholder dilution. Management is experienced but not forecast to achieve profitability within three years.

Protalix BioTherapeutics (PLX)

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

Overview: Protalix BioTherapeutics, Inc. is a biopharmaceutical company focused on developing, producing, and commercializing recombinant therapeutic proteins using its ProCellEx plant cell-based protein expression system, with a market cap of $190.95 million.

Operations: The company's revenue primarily comes from its Biotechnology (Startups) segment, totaling $76.38 million.

Market Cap: $190.95M

Protalix BioTherapeutics, with a market cap of US$190.95 million, has demonstrated impressive growth in the biotech sector. The company's earnings surged by 292.3% over the past year, significantly outpacing industry averages. Protalix reported first-quarter revenue of US$33.75 million and net income of US$18.32 million, reversing a previous loss position. The company remains debt-free and its short-term assets exceed both short and long-term liabilities, reflecting strong financial health. Despite these achievements, forecasts suggest potential declines in earnings over the next three years due to anticipated challenges within the sector's competitive landscape.

Taking Advantage

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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.