The market remained flat over the last week, but it is up 17% over the past year, with earnings expected to grow by 17% per annum. The term 'penny stocks' might feel like a relic of past market eras, but the potential they represent is as real as ever. Typically referring to smaller or relatively new companies, these stocks can provide a mix of affordability and growth potential when paired with strong financials.

Let's explore several standout options from the results in the screener.

Akebia Therapeutics (AKBA)

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

Overview: Akebia Therapeutics, Inc. is a biopharmaceutical company dedicated to developing and commercializing therapeutics for kidney disease patients, with a market cap of $362.15 million.

Operations: The company generates revenue of $232.40 million from its focus on developing and commercializing innovative therapeutics.

Market Cap: $362.15M

Akebia Therapeutics, with a market cap of US$362.15 million, has been navigating challenges typical of penny stocks. Despite generating US$232.40 million in revenue, the company remains unprofitable and is not expected to achieve profitability in the near term. Recent developments include stopping the VOICE trial due to positive interim results for Vafseo's safety profile and expanding its patent portfolio with a new patent for vadadustat. However, Akebia faces high debt levels, with a net debt to equity ratio of 119.6%, and significant insider selling has occurred recently, indicating potential concerns among insiders about future prospects.

GoodRx Holdings (GDRX)

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

Overview: GoodRx Holdings, Inc. provides tools and information for consumers to compare prices and save on prescription drug purchases in the United States, with a market cap of approximately $1.07 billion.

Operations: The company generates revenue through its Healthcare Software segment, which accounted for $787.89 million.

Market Cap: $1.07B

GoodRx Holdings, with a market cap of US$1.07 billion, has shown mixed results typical of penny stocks. The company reported sales of US$194.01 million for Q1 2026 but experienced a decline in net income to US$1.17 million from the previous year. Despite this, GoodRx launched GoodRx Companion, enhancing its subscription strategy and diversifying revenue streams by offering significant savings on healthcare services and medications. While short-term assets cover liabilities well, the company's high net debt to equity ratio (40.5%) and low return on equity (3.3%) highlight financial challenges amidst evolving business strategies.

Snap (SNAP)

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

Overview: Snap Inc. is a technology company that operates in North America, Europe, and internationally with a market capitalization of approximately $7.96 billion.

Operations: The company generates revenue primarily from its Software & Programming segment, amounting to $6.10 billion.

Market Cap: $7.96B

Snap Inc., with a market cap of US$7.96 billion, remains unprofitable but has shown progress by reducing losses over the past five years. Despite a negative return on equity and significant insider selling recently, Snap's short-term assets exceed its liabilities, providing some financial stability. The company forecasts earnings growth of 64.71% annually and maintains a satisfactory net debt to equity ratio of 34.2%. Recent developments include legal challenges related to user safety on its platform and strategic product launches like augmented reality glasses, which could influence future revenue streams amidst ongoing operational challenges.

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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.