TSX Penny Stocks Worth Watching In January 2025

As we step into the new year, investors are keeping a close eye on the Canadian market, which has shown remarkable resilience and growth. While the TSX Composite has been the talk of the town, there are several penny stocks that have the potential to deliver outsized gains in 2025. In this article, we'll highlight three TSX penny stocks that are worth watching in January 2025.



1. Sylogist (TSX:SYZ)
Sylogist is a software company specializing in enterprise resource planning (ERP) solutions, with a market cap of $210 million. The company demonstrated strong performance in the third quarter of 2024, achieving a bookings growth of 14% year over year and a SaaS annual recurring revenue (ARR) increase of 13% year over year to nearly $30 million. Its education vertical contributed almost 40% of total bookings, allowing the company to gain traction in this recession-resistant sector.

Sylogist's acquisition of Mission CRM in 2021 has proven highly successful, with ARR growing from $140,000 to $1.9 million over the past three years, indicating an annual growth rate of 141%. Trading at 26 times forward earnings, the Canadian penny stock trades at a discount of 50% to consensus price target estimates.

2. Pulse Seismic (TSX:PSD)
Pulse Seismic is a Canadian company that specializes in acquiring, managing, and licensing seismic data for the energy industry in Western Canada. With a market cap of $120 million, the company maintains an extensive seismic data library covering key regions in Alberta, British Columbia, and Saskatchewan. This data is then licensed to oil and natural gas companies to support their exploration and development activities.



Pulse Seismic reported mixed financial results for Q3, with lower revenue but maintained financial stability through disciplined cost management. It reported revenue of $2.7 million in Q3, down from $5.1 million in the year-ago period. Despite lower sales, the company maintains a strong financial position with zero debt and $7.5 million in cash as of September 30, 2024. Moreover, it pays shareholders an annual dividend of $0.11 per share, translating to a forward yield of 4.7%.

Analysts tracking the TSX stock expect adjusted earnings to expand from $0.04 in 2023 to $0.05 in 2024. Priced at 46 times earnings, Pulse remains a high-risk, high-reward investment, given its exposure to the cyclical energy sector.

3. Alvopetro Energy (TSXV:ALV)
Alvopetro Energy is a junior oil and gas company focused on exploration and development in the Permian Basin of West Texas. With a market cap of $160 million, the company has seen significant growth in its share price, up over 100% year to date. Alvopetro's strong performance can be attributed to its successful exploration and development activities, as well as its strategic acquisitions.



Alvopetro's recent acquisition of a 25% working interest in the Apache Corporation's (APA) Permian Basin assets has further strengthened its position in the region. The company's strong financial health, with a debt-to-equity ratio of just 0.1, and its significant growth potential make it an attractive investment opportunity in the TSXV.

As the Canadian market continues to show strong momentum heading into 2025, investors are keeping a close eye on potential curveballs that could affect growth. In this context, penny stocks—though a somewhat outdated term—remain relevant as they often represent smaller or less-established companies with unique opportunities. By focusing on those with solid financial health and clear growth prospects, investors can uncover potential gems in the market.

Top 10 Penny Stocks In Canada
Name Share Price Market Cap Financial Health Rating
Alvopetro Energy (TSXV:ALV) CA$4.24 CA$160.38M ★★★★★★
Amerigo Resources (TSX:ARG) CA$1.71 CA$281.86M ★★★★★☆
Pulse Seismic (TSX:PSD) CA$2.36 CA$120.59M ★★★★★★
PetroTal (TSX:TAL) CA$0.63 CA$565.76M ★★★★★★
Mandalay Resources (TSX:MND) CA$3.45 CA$335.5M ★★★★★★★
Vox Royalty (TSX:VOXR) CA$3.89 CA$187.19M ★★★★★★★
Findev (TSXV:FDI) CA$0.455 CA$13.03M ★★★★★★☆
Foraco International (TSX:FAR) CA$2.15 CA$215.73M ★★★★★☆
NamSys (TSXV:CTZ) CA$1.15 CA$28.74M ★★★★★★★
East West Petroleum (TSXV:EW) CA$0.04 CA$3.62M ★★★★★★★

Click here to see the full list of 962 stocks from our TSX Penny Stocks screener.

In conclusion, the Canadian market is showing strong momentum as it heads into 2025, supported by resilient consumer spending and rising corporate profits. Amidst this optimistic backdrop, investors may find value in exploring smaller or newer companies that are often overlooked. Despite the somewhat outdated term, penny stocks can still offer significant opportunities for those focusing on solid financial foundations and potential long-term growth. By identifying undervalued TSX penny stocks with strong growth prospects, investors can uncover promising opportunities in the market.