Penny Stocks to Watch: 3 Promising Companies with Market Cap Over $40M

This article highlights 3 promising penny stocks with a market cap of at least $40M. The stocks are Imperial Petroleum (IMPP), New Horizon Aircraft (HOVR), and Waterdrop (WDH). These companies have robust financials and a clear growth trajectory, making them potential hidden gems in the market. The article also provides an overview of the Beauty Health Company, which operates globally and has a market cap of $202.88 million. Despite being unprofitable, the company has managed to reduce losses and is committed to non-invasive treatments.

The U.S. market has shown resilience over the past year, with a 10% increase in earnings forecasted annually. For investors seeking opportunities beyond well-known stocks, penny stocks—representing smaller or newer companies—can offer intriguing prospects. This article highlights three promising penny stocks with a market cap of at least $40 million: Imperial Petroleum (IMPP), New Horizon Aircraft (HOVR), and Waterdrop (WDH). These companies exhibit strong financial health and clear growth trajectories, making them potential hidden gems in the market.

Imperial Petroleum (IMPP) is a company involved in the oil and gas sector. With a market cap of $117.7 million, the company has shown resilience with a share price of $3.42. Its financial health is marked by a strong balance sheet and a debt-to-equity ratio that indicates financial stability [1].

New Horizon Aircraft (HOVR) is a company focused on aircraft solutions. With a market cap of $69.68 million, the company has a share price of $2.22. Despite being unprofitable, it has shown a reduction in losses over the past five years. The company's strategic expansions, including partnerships with key players in the industry, indicate a promising future [1].

Waterdrop (WDH) is a company specializing in water solutions. With a market cap of $502.71 million, the company has a share price of $1.39. Waterdrop has demonstrated profitability, with a net income of $0.558 million in Q1 2025. The company's strong financial position, with debt-free status and short-term assets significantly exceeding liabilities, underscores its robust financial health [1].

In addition to these penny stocks, the Beauty Health Company operates globally with a market cap of $202.88 million. Although the company is currently unprofitable, it has managed to reduce losses over the past five years. The company's commitment to non-invasive treatments and strategic partnerships positions it for future growth [1].

Investors should conduct thorough research and consider their risk tolerance before investing in penny stocks. These companies offer intriguing opportunities but come with inherent risks. It is crucial to stay informed about the latest developments and financial reports to make informed investment decisions.

References:

[1] https://simplywall.st/stocks/us/healthcare/nasdaq-soph/sophia-genetics/news/june-2025s-promising-penny-stocks-with-growth-potential