In the last week, the market has been flat, but over the past 12 months, it has risen by 27%, with earnings forecasted to grow annually by 17%. For investors looking beyond traditional stocks, penny stocks—typically smaller or newer companies—offer intriguing possibilities. Though the term may seem outdated, these stocks can still provide valuable opportunities when they possess strong financials and growth potential.

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

MindWalk Holdings (HYFT)

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

Overview: MindWalk Holdings Corp. is a bio-native AI company with a market cap of $78.97 million.

Operations: The company generates revenue from Antibody Production and Related Services, totaling CA$28.08 million.

Market Cap: $78.97M

MindWalk Holdings Corp., with a market cap of US$78.97 million, is navigating the volatile penny stock landscape by leveraging its bio-native AI platform. Recent earnings show a significant reduction in net loss, from CA$21.52 million to CA$3.93 million year-over-year for Q3 2026, alongside revenue growth to CA$4.16 million. The company has no debt and maintains a sufficient cash runway exceeding one year, but remains unprofitable with negative return on equity and high share price volatility. Its innovative B Cell Llama™ platform targets the lucrative bispecific antibody market, yet profitability remains elusive amidst ongoing development efforts across multiple therapeutic areas.

Myriad Genetics (MYGN)

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

Overview: Myriad Genetics, Inc. is a molecular diagnostics and precision medicine company that develops molecular tests, with a market cap of $359.85 million.

Operations: The company generates revenue from its biotechnology segment, which amounts to $829 million.

Market Cap: $359.85M

Myriad Genetics, Inc., with a market cap of US$359.85 million, faces challenges typical of penny stocks, including ongoing unprofitability and increased debt to equity ratio over five years. Despite a negative return on equity and losses growing at 34.2% annually over the past five years, the company maintains sufficient cash runway for more than three years based on current free cash flow. Recent earnings reports show sales growth to US$200.4 million for Q1 2026 but a net loss increase to US$34.1 million compared to last year. Myriad continues advancing its diagnostics portfolio with promising clinical trial results in breast cancer treatment monitoring using its Precise MRD test.

Douglas Elliman (DOUG)

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

Overview: Douglas Elliman Inc. operates in the real estate services and property technology investment sectors in the United States, with a market cap of approximately $161.81 million.

Operations: The company's revenue is primarily derived from its real estate services segment, which generated $993.99 million.

Market Cap: $161.81M

Douglas Elliman Inc., with a market cap of US$161.81 million, operates without debt, which simplifies financial management but its short-term assets (US$151.2 million) do not cover long-term liabilities (US$164.8 million). Despite recent profitability, the company reported a Q1 2026 net loss of US$16.28 million on revenue of US$214.33 million, down from the previous year. The company's high non-cash earnings and stable weekly volatility are notable, though share price volatility remains high over three months. Recent strategic appointments and exclusive marketing rights for luxury residences in Boca Raton could bolster future performance in real estate services.

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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.