3 Penny Stocks to Watch: Incannex Healthcare, XBP Europe Holdings, and AEye Inc.

Incannex Healthcare, XBP Europe Holdings, and AEye Inc. are the top 3 penny stocks to watch on July 31, 2025, based on TipRanks' Penny Stock Screener tool. Incannex Healthcare is a biopharmaceutical company developing treatments for chronic conditions, while XBP Europe Holdings is a fintech company focused on bills, payments, and related financial services. AEye Inc. develops advanced lidar systems for autonomous vehicles and robotic vision applications. The stocks have high dollar volumes and recent price changes.

Incannex Healthcare Inc. (NASDAQ: IXHL), XBP Europe Holdings (NASDAQ: XBP), and AEye Inc. (NASDAQ: LIDR) are among the top penny stocks to watch on July 31, 2025, according to TipRanks' Penny Stock Screener tool. These stocks have shown significant price changes and high dollar volumes, attracting the attention of investors and financial professionals.

Incannex Healthcare Inc.

Incannex Healthcare Inc. is a clinical-stage biopharmaceutical company developing treatments for chronic conditions, with a focus on Obstructive Sleep Apnea (OSA). The company's stock price rose by 34.63% after promising FDA designations boosted investor confidence [2]. The appointment of Dr. Douglas B. Kirsch, a celebrated sleep medicine expert, to its Clinical Advisory Board further enhances the company's credibility. Incannex is developing IHL-42X, a novel oral drug candidate for OSA, which demonstrated statistically significant and clinically meaningful improvements in a recent Phase 2 clinical trial [1]. The trial results confirm significant reductions in Apnoea-Hypopnoea Index (AHI), improvements in patient-perceived benefits, and enhanced oxygenation during sleep. Despite financial challenges, Incannex's positive cash flow position and strategic moves indicate potential for high growth.

XBP Europe Holdings

XBP Europe Holdings (NASDAQ: XBP) surged 81.09% on July 30, 2025, with a trading volume of $0.29 billion, ranking 430th in market activity [2]. The stock's sharp rise followed the completion of its acquisition of Exela Technologies BPA, LLC, forming XBP Global Holdings. The combined entity now projects over $900 million in annual revenue, operates in 19 countries, and serves 2,500 clients, including 60 Fortune 100 companies. The acquisition involved issuing 81.8 million new shares to eliminate $1.1 billion of BPA’s secured debt. The transaction reduced the company’s net debt-to-EBITDA ratio to 3.5x, positioning it within an industry-acceptable leverage range. XBP Global Holdings emphasizes its expanded workforce of 11,000 employees and diversified institutional shareholder base, alongside enhanced corporate governance.

AEye Inc.

AEye Inc. (NASDAQ: LIDR) develops advanced lidar systems for autonomous vehicles and robotic vision applications. The company has positioned itself at the intersection of innovation and industrialization through its recent integration of the Apollo lidar sensor into NVIDIA's DRIVE AGX platform [1]. This strategic move validates AEye's vision to redefine mobility by leveraging Apollo's 1-kilometer detection range and software-defined architecture. While the company faces financial turbulence, the long-term strategic value of its lidar technology remains promising. The integration with NVIDIA's ecosystem, which includes major OEMs like Tesla, BMW, and Toyota, could help AEye bypass traditional market entry barriers.

References:
[1] https://www.inkl.com/news/nano-cap-incannex-s-sleep-apnea-candidate-shows-effectiveness-and-safety-in-mid-stage-trial
[2] https://www.ainvest.com/news/xbp-europe-holdings-surges-81-0-29-billion-volume-ranking-430th-market-activity-acquisition-fuels-xbp-global-holdings-900m-revenue-2507/