Over the last 7 days, the U.S. market has dropped by 1.0%, yet it has risen by 23% over the past year, with earnings forecasted to grow annually by 17%. In such a fluctuating market, identifying stocks with strong fundamentals and growth potential is crucial for investors seeking stability and opportunity. While "penny stocks" may sound like an outdated term, they continue to represent smaller or less-established companies that can offer significant value; we've identified three such stocks that combine financial resilience with promising prospects.

Below we spotlight a couple of our favorites from our exclusive screener.

Cardiff Oncology (CRDF)

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

Overview: Cardiff Oncology, Inc. is a clinical-stage biotechnology company focused on developing novel cancer therapies in the United States, with a market cap of $115.55 million.

Operations: The company generates revenue of $0.53 million from the development of innovative treatments targeting various cancer types.

Market Cap: $115.55M

Cardiff Oncology, a clinical-stage biotech firm with a market cap of US$115.55 million, remains pre-revenue, generating only US$0.53 million. Recent developments include presenting promising data on their oral PLK1 inhibitor, onvansertib, at major conferences such as ASCO and AACR 2026. Despite being debt-free and having short-term assets exceeding liabilities, the company faces financial challenges with less than one year's cash runway if current cash flow trends persist. Leadership changes have introduced new expertise to navigate these hurdles while focusing on advancing cancer therapies through ongoing clinical trials and investigator-initiated studies.

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 $207.23 million.

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

Market Cap: $207.23M

OraSure Technologies, with a market cap of US$207.23 million, is navigating financial challenges as it remains unprofitable with increasing losses over the past five years. Despite generating US$113.02 million in revenue from its Diagnostics and Molecular Solutions segment, the company reported a net loss of US$22.38 million for Q1 2026, an increase from the previous year. Recent strategic actions include share buybacks totaling 9.68% and board changes following investor activism by Altai Capital Management, which has pushed for governance reforms and strategic reviews to address underperformance and unlock shareholder value. The company remains debt-free with ample short-term assets covering liabilities.

Endava (DAVA)

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

Overview: Endava plc, along with its subsidiaries, offers technology services across North America, Europe, the United Kingdom, and internationally, with a market cap of approximately $211.37 million.

Operations: The company's revenue from its Computer Services segment totals £743.90 million.

Market Cap: $211.37M

Endava, with a market cap of approximately US$211.37 million, is navigating financial hurdles as it remains unprofitable and has seen losses increase at an annual rate of 23.3% over the past five years. Despite this, the company offers promising potential by trading at 74.6% below its estimated fair value and maintaining a satisfactory net debt to equity ratio of 23.7%. Recent strategic developments include a partnership with Tyl by NatWest aimed at enhancing payment solutions through Endava's AI-native delivery model, Dava.Flow™, which could bolster future revenue streams while demonstrating its capability in large-scale engagements.

Where To Now?

• Unlock more gems! Our US Penny Stocks screener has unearthed 353 more companies for you to explore.Click here to unveil our expertly curated list of 356 US Penny Stocks.
• Seeking Other Investments? We've found 12 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.