As we step into 2025, the global markets have experienced a mix of gains and setbacks, with major U.S. stock indexes showing moderate growth despite declining consumer confidence and manufacturing orders. In this context, the allure of penny stocks remains significant for investors seeking affordable entry points into potentially high-growth sectors. Although the term "penny stocks" might seem outdated, these smaller or newer companies can still offer substantial opportunities when backed by strong financial health.

Top 10 Penny Stocks
Name Share Price Market Cap Financial Health Rating
DXN Holdings Bhd (KLSE:DXN) MYR0.515 MYR2.56B ★★★★★★
Embark Early Education (ASX:EVO) A$0.765 A$140.36M ★★★★☆☆
Hil Industries Berhad (KLSE:HIL) MYR0.895 MYR297.09M ★★★★★★
MGB Berhad (KLSE:MGB) MYR0.73 MYR431.91M ★★★★★★
ME Group International (LSE:MEGP) £2.05 £772.37M ★★★★★★
Bosideng International Holdings (SEHK:3998) HK$3.88 HK$42.73B ★★★★★★
Datasonic Group Berhad (KLSE:DSONIC) MYR0.41 MYR1.14B ★★★★★★
Begbies Traynor Group (AIM:BEG) £0.948 £149.54M ★★★★★★
Lever Style (SEHK:1346) HK$0.86 HK$545.92M ★★★★★★
Secure Trust Bank (LSE:STB) £3.62 £69.04M ★★★★☆☆

Click here to see the full list of 5,812 stocks from our Penny Stocks screener.
Below we spotlight a couple of our favorites from our exclusive screener.
Don't Nod Entertainment (ENXTPA:ALDNE)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Don't Nod Entertainment S.A. is a global video game developer and publisher with a market cap of €18.91 million.
Operations: The company generates €30.18 million in revenue from the development of video games.
Market Cap: €18.91M
Don't Nod Entertainment S.A., with a market cap of €18.91 million, reported a net loss of €42.37 million for the half year ending June 30, 2024, despite generating €14.58 million in revenue. The company has a strong cash position with short-term assets of €55.9 million exceeding both short and long-term liabilities, providing a cash runway for over three years if historical free cash flow reduction rates persist. While unprofitable and experiencing high share price volatility, its debt-to-equity ratio has improved significantly over five years from 6.2% to 2.2%, indicating better financial management amidst challenging conditions.
Click here to discover the nuances of Don't Nod Entertainment with our detailed analytical financial health report.
Review our growth performance report to gain insights into Don't Nod Entertainment's future.
ENXTPA:ALDNE Debt to Equity History and Analysis as at Jan 2025
Xinda Investment Holdings (SEHK:1281)
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Xinda Investment Holdings Limited, with a market capitalization of HK$250.90 million, operates in the smart energy and public infrastructure construction sectors in the People's Republic of China.
Operations: The company's revenue is derived from its Smart Energy Business, which generated CN¥90.81 million, and its Public Infrastructure Construction Business, contributing CN¥12.73 million.
Market Cap: HK$250.9M
Xinda Investment Holdings Limited, with a market cap of HK$250.90 million, operates in the smart energy and public infrastructure sectors in China. Despite being unprofitable with a negative return on equity, the company has reduced its debt-to-equity ratio from 36.6% to 17.3% over five years and maintains more cash than its total debt. Short-term assets of CN¥661 million surpass both short- and long-term liabilities, ensuring a cash runway exceeding three years even as free cash flow shrinks annually by 33%. Recent board changes include appointing Ms. Zou Yanhong as an executive director effective December 2024.
Navigate through the intricacies of Xinda Investment Holdings with our comprehensive balance sheet health report here.
Understand Xinda Investment Holdings' track record by examining our performance history report.
SEHK:1281 Financial Position Analysis as at Jan 2025
Yoma Strategic Holdings (SGX:Z59)
Simply Wall St Financial Health Rating: ★★★★★☆
Overview: Yoma Strategic Holdings Ltd. is an investment holding company involved in real estate, motor, leasing, mobile financial services, food and beverages, and investment sectors across Singapore, Myanmar, and China with a market cap of SGD174.24 million.
Operations: The company's revenue is primarily derived from its operations in Myanmar, with $99.09 million from Yoma Land Development, $38.67 million from Mobile Financial Services, $30.52 million from Yoma F&B, $16.54 million from Yoma Land Services, $10.07 million from Yoma Motors (excluding Financial Services), and $7.83 million and $7.92 million respectively from Leasing and Investments across Myanmar and the PRC.
Market Cap: SGD174.24M
Yoma Strategic Holdings Ltd., with a market cap of SGD174.24 million, has seen its financial performance impacted by large one-off gains and shareholder dilution over the past year. Despite reporting a net loss of US$11.04 million for the half-year ending September 2024, the company has a strong balance sheet with short-term assets of SGD1.14 billion covering both short-term (SGD29.3M) and long-term liabilities (SGD3.8M). However, its cash runway is less than one year based on current free cash flow trends. Recent board changes include the resignation of Jens Eckstein as a non-executive director, highlighting potential shifts in strategic direction amidst financial constraints.
Take a closer look at Yoma Strategic Holdings here in our financial health report.
Learn about Yoma Strategic Holdings' future growth trajectory here.
SGX:Z59 Debt to Equity History and Analysis as at Jan 2025


In conclusion, the top 10 penny stocks listed above offer investors affordable entry points into potentially high-growth sectors