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The Australian market has seen mixed performance, with the ASX200 closing flat at 7,936 points. In this context, investors may find value in exploring penny stocks—an investment area that remains relevant despite its somewhat outdated terminology. These smaller or newer companies can offer unique opportunities when backed by strong financials, and we'll highlight three such stocks that stand out for their potential to deliver long-term growth.
Top 10 Penny Stocks In Australia
Name | Share Price | Market Cap | Financial Health Rating |
CTI Logistics (ASX:CLX) | A$1.635 | A$127.55M | ★★★★☆☆ |
Accent Group (ASX:AX1) | A$1.77 | A$1B | ★★★★☆☆ |
EZZ Life Science Holdings (ASX:EZZ) | A$1.56 | A$73.59M | ★★★★★★ |
IVE Group (ASX:IGL) | A$2.40 | A$371.73M | ★★★★★☆ |
GTN (ASX:GTN) | A$0.62 | A$121.75M | ★★★★★★ |
West African Resources (ASX:WAF) | A$2.21 | A$2.52B | ★★★★★★ |
Bisalloy Steel Group (ASX:BIS) | A$3.08 | A$146.15M | ★★★★★★ |
Regal Partners (ASX:RPL) | A$2.41 | A$808.31M | ★★★★★★ |
NRW Holdings (ASX:NWH) | A$2.79 | A$1.28B | ★★★★★☆ |
LaserBond (ASX:LBL) | A$0.38 | A$44.59M | ★★★★★★ |
Click here to see the full list of 980 stocks from our ASX Penny Stocks screener.
Let's dive into some prime choices out of the screener.
Clover
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Clover Corporation Limited is involved in the production, refining, and sale of natural oils and encapsulated powders across various regions including Australia, New Zealand, Asia, Europe, the Middle East, and the Americas with a market cap of A$75.98 million.
Operations: The company generates revenue primarily from its Nutritional Oil and Microencapsulated Powders segment, which accounts for A$72.49 million.
Market Cap: A$75.98M
Clover Corporation Limited, with a market cap of A$75.98 million, has demonstrated significant earnings growth over the past year, outpacing the industry average. Its short-term assets comfortably cover both short and long-term liabilities, indicating strong financial health. The company has managed to reduce its debt significantly over five years and maintains more cash than total debt. Recent dividend affirmations suggest confidence in cash flow stability. However, despite high-quality past earnings and improved profit margins, its Return on Equity remains low at 6.7%. The management team is experienced with an average tenure of three years.
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Click here to discover the nuances of Clover with our detailed analytical financial health report.
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Assess Clover's future earnings estimates with our detailed growth reports.
Praemium
Simply Wall St Financial Health Rating: ★★★★★★
Overview: Praemium Limited, with a market cap of A$332.35 million, offers advisors and wealth management solutions through a seamless digital platform in Australia and internationally.