Undervalued Penny Stocks To Watch In December 2024

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Global markets have recently experienced a surge, with major indices like the Dow Jones Industrial Average and S&P 500 reaching record highs, buoyed by positive sentiment from domestic policy developments and geopolitical events. In this context of market optimism, investors may find opportunities in lesser-known sectors such as penny stocks. While the term "penny stocks" might seem outdated, it still refers to smaller or newer companies that can offer significant value when backed by strong financials.

Top 10 Penny Stocks

Name

Share Price

Market Cap

Financial Health Rating

DXN Holdings Bhd (KLSE:DXN)

MYR0.485

MYR2.41B

★★★★★★

Embark Early Education (ASX:EVO)

A$0.80

A$146.79M

★★★★☆☆

Datasonic Group Berhad (KLSE:DSONIC)

MYR0.40

MYR1.11B

★★★★★★

Hil Industries Berhad (KLSE:HIL)

MYR0.875

MYR290.45M

★★★★★★

ME Group International (LSE:MEGP)

£2.19

£825.11M

★★★★★★

Bosideng International Holdings (SEHK:3998)

HK$4.05

HK$44.6B

★★★★★★

LaserBond (ASX:LBL)

A$0.55

A$64.47M

★★★★★★

Lever Style (SEHK:1346)

HK$0.86

HK$545.92M

★★★★★★

Next 15 Group (AIM:NFG)

£4.275

£425.17M

★★★★☆☆

Secure Trust Bank (LSE:STB)

£3.69

£70.37M

★★★★☆☆

Click here to see the full list of 5,705 stocks from our Penny Stocks screener.

Let's dive into some prime choices out of the screener.

Fenbi

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

Overview: Fenbi Ltd. is an investment holding company offering non-formal vocational education and training services in the People’s Republic of China, with a market cap of HK$5.83 billion.

Operations: The company generates revenue from two primary segments: Sales of Books, which contributed CN¥648.46 million, and Tutoring Services, which brought in CN¥2.47 billion.

Market Cap: HK$5.83B

Fenbi Ltd., with a market cap of HK$5.83 billion, has shown promising financial health by becoming profitable this year and maintaining a high Return on Equity of 30.3%. The company operates without debt, reducing financial risk and ensuring that its short-term assets significantly exceed both short-term (CN¥682 million) and long-term liabilities (CN¥69.1 million). Despite its profitability, the stock has experienced high volatility over the past three months, which is common among stocks in this category. However, significant insider selling in recent months may warrant caution for potential investors.

SEHK:2469 Debt to Equity History and Analysis as at Dec 2024
SEHK:2469 Debt to Equity History and Analysis as at Dec 2024

Greentown Service Group

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

Overview: Greentown Service Group Co. Ltd., along with its subsidiaries, offers residential property management services in the People's Republic of China and internationally, with a market cap of HK$12.31 billion.