Over the last 7 days, the United States market has dropped 2.7%, yet it has risen by 19% over the past year, with earnings forecasted to grow annually by 18%. For investors exploring smaller or newer companies, penny stocks—despite their somewhat outdated name—can still offer surprising value when backed by solid financial foundations. This article highlights several penny stocks that demonstrate financial strength and potential for long-term growth amid current market conditions.

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

Gamehaus Holdings (GMHS)

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

Overview: Gamehaus Holdings Inc. is a technology-driven mobile game publishing company that distributes games from developer partners across various international markets, with a market cap of $55.90 million.

Operations: Gamehaus Holdings generates revenue from its Computer Graphics segment, totaling $110.90 million.

Market Cap: $55.9M

Gamehaus Holdings Inc., with a market cap of US$55.90 million, operates in the mobile game publishing sector and has demonstrated stable financial health. The company reported third-quarter sales of US$26.22 million, slightly down from the previous year but saw an increase in net income to US$0.52 million. Its short-term assets significantly exceed both short-term and long-term liabilities, indicating solid liquidity management. Gamehaus's earnings have grown modestly at 1.6% over the past year, surpassing industry averages despite a less seasoned management team and board of directors with an average tenure of 1.4 years each.

Hongli Group (HLP)

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

Overview: Hongli Group Inc., along with its subsidiaries, manufactures and sells customized steel profiles both in the People's Republic of China and internationally, with a market cap of $35.87 million.

Operations: The company generates its revenue primarily from the Metal Processors and Fabrication segment, totaling $19.60 million.

Market Cap: $35.87M

Hongli Group Inc., with a market cap of US$35.87 million, has recently turned profitable, reporting annual sales of US$19.60 million and net income of US$1.94 million. Its short-term assets exceed liabilities, indicating sound liquidity management, while the debt-to-equity ratio has decreased to 19.9%, reflecting improved financial health despite low return on equity at 3.4%. The company is exploring growth in the energy storage sector through strategic alliances and a new solid-state battery division but faces challenges with increased share price volatility and an inexperienced board averaging 0.9 years in tenure.

Planet Image International (YIBO)

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

Overview: Planet Image International Limited manufactures and sells compatible toner cartridges under both white-label and self-owned brands through online platforms globally, with a market cap of $54.50 million.

Operations: The company's revenue is primarily derived from its Printers & Related Products segment, totaling $155.25 million.

Market Cap: $54.5M

Planet Image International, with a market cap of US$54.50 million, reported annual sales of US$155.25 million but experienced a net loss of US$8.25 million for 2025, reversing from the previous year's profit. The company's board is experienced with an average tenure of five years, though it remains unprofitable and has seen increased losses over the past five years at a rate of 27.6% annually. Despite having more cash than debt and covering liabilities with short-term assets, its high volatility and negative return on equity present challenges for potential investors in the penny stock space.

Key Takeaways

• Explore the 334 names from our US Penny Stocks screener here.
• Ready To Venture Into Other Investment Styles? The latest GPUs need a type of rare earth metal called Dysprosium and there are only 28 companies in the world exploring or producing it. Find the 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.