The U.S. stock market has experienced a volatile period, with major indices like the Nasdaq, S&P 500, and Dow Jones Industrial Average showing varied performance amid ongoing trade tensions and impressive bank earnings. In this context, penny stocks—often associated with smaller or newer companies—continue to attract attention for their potential to offer significant growth opportunities. Despite being considered a niche investment area today, these stocks can still provide value when backed by strong financial health. Here we explore three penny stocks that stand out for their financial strength and growth potential in the current market landscape.

Name

Share Price

Market Cap

Financial Health Rating

Dingdong (Cayman) (DDL)

$1.81

$396.46M

★★★★★★

Waterdrop (WDH)

$1.79

$650.99M

★★★★★☆

LexinFintech Holdings (LX)

$4.95

$849.73M

★★★★★★

Global Self Storage (SELF)

$4.90

$55.1M

★★★★★☆

Sensus Healthcare (SRTS)

$3.22

$52.77M

★★★★★★

Performance Shipping (PSHG)

$1.89

$23.75M

★★★★★★

CI&T (CINT)

$4.22

$547.65M

★★★★★☆

Golden Growers Cooperative (GGRO.U)

$5.00

$77.45M

★★★★★★

BAB (BABB)

$0.98

$6.99M

★★★★★★

Lifetime Brands (LCUT)

$3.41

$78.39M

★★★★★☆

Click here to see the full list of 363 stocks from our US Penny Stocks screener.

Let’s take a closer look at a couple of our picks from the screened companies.

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

Overview: Anixa Biosciences, Inc. is a biotechnology company that develops therapies and vaccines targeting critical unmet needs in oncology, with a market cap of $148.78 million.

Operations: Anixa Biosciences, Inc. does not currently report any revenue segments.

Market Cap: $148.78M

Anixa Biosciences is a pre-revenue biotechnology company with a market cap of US$148.78 million, focusing on innovative cancer therapies and vaccines. Recent developments include the completion of patient visits in its breast cancer vaccine trial funded by the U.S. Department of Defense, and ongoing ovarian cancer CAR-T therapy trials in collaboration with Moffitt Cancer Center. Despite being unprofitable and highly volatile, Anixa maintains no debt and has sufficient cash runway for over a year. The company benefits from seasoned management and board members while leveraging partnerships with renowned research institutions to advance its pipeline.

ANIX Financial Position Analysis as at Oct 2025 ANIX Financial Position Analysis as at Oct 2025

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

Overview: Siebert Financial Corp. operates in the United States, offering brokerage and financial advisory services, with a market cap of $124.11 million.

Story Continues

Operations: The company generates revenue primarily from its securities brokerage and asset management industry, amounting to $86.04 million.

Market Cap: $124.11M

Siebert Financial Corp., with a market cap of US$124.11 million, is navigating the penny stock landscape by leveraging strategic partnerships and financial infrastructure. Recent collaborations with Next Securities aim to enhance trading platforms through AI technology, potentially broadening Siebert’s market reach. Despite a recent decline in quarterly revenue to US$14.87 million and a net loss of US$4.72 million, the company maintains strong short-term asset coverage over its liabilities and has reduced its debt-to-equity ratio significantly over five years. However, challenges include negative earnings growth and low return on equity, highlighting areas needing improvement amidst evolving market conditions.

SIEB Debt to Equity History and Analysis as at Oct 2025 SIEB Debt to Equity History and Analysis as at Oct 2025

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

Overview: CS Diagnostics Corp. designs, manufactures, and sells wellness and medical products in Germany and internationally, with a market cap of $47.41 million.

Operations: The company generates revenue from its Internet Software & Services segment, amounting to $0.08 million.

Market Cap: $47.41M

CS Diagnostics Corp., with a market cap of US$47.41 million, operates in the wellness and medical products sector and has recently transitioned to profitability despite being pre-revenue with just US$84K in revenue. The company’s short-term assets significantly exceed its liabilities, and it remains debt-free, reflecting a solid financial position amidst high share price volatility. Recent earnings reports show declining revenue but an increase in net income for the first half of 2025 compared to the previous year, suggesting cost management improvements. However, its low return on equity indicates potential challenges in generating shareholder value efficiently.

CSDX Debt to Equity History and Analysis as at Oct 2025 CSDX Debt to Equity History and Analysis as at Oct 2025

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.

Companies discussed in this article include ANIX SIEB and CSDX.

This article was originally published by Simply Wall St.

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