In this article we will take a look at ten most profitable penny stocks to invest in now.
As the S&P 500 inches toward a new all time high , closing at 6,141.02 on June 26, just a few points shy of February’s record of 6,147.43, investors are rotating back into risk assets, with speculative stocks, including penny stocks, attracting renewed attention. The Nasdaq Composite also advanced to 20,167.91, while the Dow surged 404 points to 43,386.84, reinforcing the broad market's bullish momentum despite a backdrop of economic and geopolitical uncertainty.
What’s fueling this renewed appetite for risk? A combination of resilient market data and shifting expectations for monetary policy is at play. The Federal Reserve has adopted a “wait and see” stance, with most officials leaning against a July rate cut. However, recent comments from Fed Governors Christopher Waller and Michelle Bowman signal that cuts are not off the table, particularly if inflation remains subdued. This ambiguity has weakened the U.S. dollar and heightened investor interest in high beta assets, including small cap and penny stocks.
On the international front, Japan’s Nikkei 225 crossed the 40,000 mark, closing at 40,162.49 for the first time since January, while the Topix index rose 1.22%, fueled by easing inflation pressures. Tokyo’s core CPI for June slowed to 3.1% YoY from 3.6% in May, giving the Bank of Japan more room to maneuver. Meanwhile, retail sales growth also cooled to 2.2%, the slowest in three months.
In Asia Pacific markets more broadly, the sentiment was mixed. While South Korea’s Kospi and Kosdaq fell over 1%, markets in Hong Kong and mainland China remained flat as China’s industrial profits dropped 9.1% YoY in the first five months of 2025. In contrast, Xiaomi shares jumped nearly 8%, hitting a record high on the launch of a new EV priced below Tesla’s Model Y, another signal of investor enthusiasm for innovation and affordability.
Back in the U.S., political and trade risks are still on the radar. July 8 marks the expiration of a tariff pause initiated by President Trump, and July 9 is the deadline for an EU trade deal. However, White House officials have downplayed the urgency, suggesting the tariff deadlines may be flexible. This lack of immediate concern has allowed stocks to rally, even with the looming uncertainty.
Despite these macro risks, Wall Street strategists are now encouraging selective buying in companies with strong fundamentals, particularly those with robust balance sheets and consistent earnings. That’s where profitable penny stocks come in. As investor sentiment tilts toward opportunity, small cap companies that are already generating solid net income offer asymmetric upside.
In this article, we spotlight 10 most profitable penny stocks trading under $5 that have not only weathered the volatility but are showing signs of sustained growth. From banking to tech and beyond, these names combine low market caps with strong earnings, making them stand out in today’s speculative yet data driven investing landscape.
Our approach to determining the most profitable penny stocks
To compile our list of the ten most profitable penny stocks to invest in now, we used stock screeners to find penny stocks that have a buy or better rating from analysts. Next, we selected stocks that had the highest trailing twelve months (TTM) net income. The stocks have a price of under $5 as of June 26. The final list is arranged in ascending order of the trailing twelve months net income.
10 Most Profitable Penny Stocks to Invest In Now
10. New Gold Inc. (NYSE:NGD)
Latest TTM Net Income: $129.40 Million
Closing price on June 26: $4.93
New Gold Inc. (NYSE:NGD) is shaping up to be one of the most compelling penny stocks in the gold and copper space. With a current share price of $4.93 and a trailing twelve month net income of $129.4 million, this intermediate gold miner is delivering strong fundamental performance, making it an attractive option for value focused and resource sector investors.
The company operates two key Canadian assets: the Rainy River mine in Ontario and the New Afton project in British Columbia. In Q1 2025, New Gold produced over 52,000 ounces of gold and 13.6 million pounds of copper, figures that exceeded early year guidance. Notably, the all in sustaining cost (AISC) of $1,727 per ounce is expected to decline throughout the year as output increases. New Afton alone generated a standout $52 million in free cash flow this quarter, thanks to better than expected copper credits and high grade ore from the B3 cave.
Operational efficiency is translating into stronger financials. New Gold Inc. (NYSE:NGD) recorded $107 million in operating cash flow and $25 million in free cash flow during Q1. The company also strengthened its balance sheet by refinancing its senior notes at lower interest rates and expanding its revolving credit facility, moves that boost its financial flexibility significantly.
Another key catalyst: New Gold Inc. (NYSE:NGD) is now consolidating 100% ownership of New Afton, eliminating previous free cash flow sharing. This positions the company to fully benefit from long term exploration upside and mine life extensions.
With solid production guidance, low debt, and plans to ramp up both mining and exploration activities, New Gold Inc. (NYSE:NGD) is entering a golden period, literally and financially. It’s a strong candidate for investors seeking high upside penny stocks in the resource sector.
09. AEON Biopharma, Inc. (NYSE:AEON)
Latest TTM Net Income: $169.12 Million
Closing price on June 26: $0.76
AEON Biopharma, Inc. (NYSE:AEON) is turning heads as a high potential penny stock in the biopharma space. Priced at just $0.76 per share and boasting a TTM net income of $169.12 million, AEON is making waves with its novel approach to botulinum toxin therapies, challenging a $3.3 billion global market currently dominated by a single player, Botox.
At the core of AEON Biopharma, Inc. (NYSE:AEON) strategy is ABP 450 (prabotulinumtoxinA), a botulinum toxin being developed for debilitating medical conditions like chronic migraine and cervical dystonia. Having already completed Phase 2 studies for dystonia and advancing trials for migraines, AEON is making strong headway. Even more exciting, the company is pursuing a 351(k) biosimilar pathway with the FDA, an approach that could grant it approval for all current and future therapeutic uses of Botox with a single regulatory win.
From a leadership perspective, AEON Biopharma, Inc. (NYSE:AEON) recently appointed Rob Bancroft, a biotech veteran known for his success at Revance Therapeutics, as CEO. His experience and early execution strategies are already paying off.
Financially, the Q1 2025 numbers are bullish. AEON swung to a net income of $9.1 million, a huge turnaround from a $118 million loss the year before. While R&D spending has been reined in, the company maintains a laser focus on analytical studies needed for the upcoming Biosimilar Biological Product Development (BPD) Type 2a meeting with the FDA in the second half of 2025.
With $10.4 million in cash and a green light from the NYSE American to continue listing through 2026, AEON has both the liquidity and runway to execute its development roadmap.
For investors hunting undervalued biotech plays with massive upside, AEON Biopharma, Inc. (NYSE:AEON) is a penny stock worth watching closely.
08. Enel Chile S.A. (NYSE:ENIC)
Latest TTM Net Income: $181.00 Million
Closing price on June 26: $3.65
Enel Chile S.A. (NYSE:ENIC) is quickly gaining attention among savvy investors looking for value in the utilities sector. With a trailing twelve months (TTM) net income of $181 million and a stock price of just $3.65 as of June 26, this penny stock offers a rare mix of profitability, growth, and resilience.
The company operates a highly diversified electricity business in Chile, spanning power generation, transmission, and distribution. Enel Chile’s generation portfolio is particularly strong, boasting 8.9 GW of installed capacity, with 28% coming from renewables like solar, wind, hydro, and battery storage. In Q1 2025, the company celebrated a major milestone with the commercial launch of the Los Cóndores hydro plant, adding 153 MW to its clean energy arsenal.
Despite challenges like the February blackout and reduced hydro production due to lower snowmelt, Enel Chile S.A. (NYSE:ENIC) maintained its profitability and fulfilled energy commitments, thanks to strategic sourcing and improved wind power performance. Net electricity generation was 5.6 TWh, and energy sales reached 7.7 TWh, showing operational resilience amid adversity.
Financially, Enel Chile posted Q1 2025 net income of $175 million, up 11% year over year. Its EBITDA reached $365 million, driven by better commercial sourcing, optimized hedging strategies, and lower regasification costs. With $460 million in cash and committed credit lines worth $640 million, the company is in good shape for future capital needs.
Moreover, Enel Chile S.A. (NYSE:ENIC) dividend payout of 4.24 Chilean pesos per share for 2024 reinforces its shareholder friendly posture.
Enel Chile S.A. (NYSE:ENIC) low valuation, strong earnings, renewable push, and regulatory tailwinds make it a standout among profitable penny stocks. For long term investors eyeing consistent returns with upside in the energy transition, Enel Chile deserves a spot on your watchlist.
07. Gray Media, Inc. (NYSE:GTN)
Latest TTM Net Income: $226.00 Million
Closing price on June 26: $4.55
Gray Media, Inc. (NYSE:GTN) is proving itself to be one of the most resilient and undervalued players in the media landscape.
Despite operating in a challenging advertising environment, Gray outperformed expectations in Q1 2025. The company reported $782 million in total revenue, exceeding the upper end of guidance, while controlling costs effectively. Adjusted EBITDA came in at a solid $160 million, demonstrating strong operational efficiency even with a 19% year over year dip, largely due to the absence of prior year Super Bowl revenues and a one time gain on asset sale.
While net income dipped to a modest $9 million net loss for the quarter, the company made significant strides in strengthening its balance sheet. Gray reduced its outstanding debt by $17 million and improved its leverage ratios, positioning itself for sustainable long term growth.
Gray Media, Inc. (NYSE:GTN) strategy extends beyond traditional broadcasting. Its Assembly Studios are gaining momentum with major network and streaming productions, including CBS’s “Beyond the Gates.” Meanwhile, its growing portfolio of local sports rights, now covering 80% of markets, is helping boost local engagement and advertising value.
On the digital front, Gray Media, Inc. (NYSE:GTN) continues to expand with double digit growth, while the company’s political advertising segment significantly outperformed expectations in an off election year.
With over $1 billion in liquidity, strong EBITDA, and a strategic focus on local content and sports broadcasting, Gray is in good shape for continued profitability. Add to that a quarterly dividend of $0.08 per share, and Gray Media, Inc. (NYSE:GTN) makes a compelling case as a hidden gem in the penny stock universe.
06. Baytex Energy Corp. (NYSE:BTE)
Latest TTM Net Income: $232.71 Million
Closing price on June 26: $1.84
Baytex Energy Corp. (NYSE:BTE) is quietly emerging as one of the most compelling opportunities in the penny stock energy sector. Baytex Energy Corp. (NYSE:BTE) offers a rare combination of profitability, production strength, and financial discipline that’s hard to overlook.
Despite the global volatility in oil prices and macroeconomic uncertainties, Baytex delivered a solid Q1 2025 performance. The company generated $53 million in free cash flow, a significant turnaround from the same period last year. Impressively, it returned $30 million to shareholders through dividends and buybacks and continues to reduce debt, cutting net debt by 10% year over year, down to $2.4 billion.
Baytex Energy Corp. (NYSE:BTE) is strongly leveraged to crude oil, with 84% of production weighted to oil and liquids, making it particularly responsive to WTI price movements. The company is also actively hedging 45% of its 2025 oil output with a $60 floor, offering protection against further price drops while maintaining upside potential.
Operationally, Baytex Energy Corp. (NYSE:BTE) remains robust, producing 144,200 BOE/day in Q1 and staying on track with full year guidance. Strategic investments in high potential assets like Eagle Ford, Viking, and the Pembina Duvernay are expected to drive long term growth. The company’s efficient cost control, targeting a 7% improvement in drilling and completion costs, also supports stronger margins going forward.
With a capital efficient growth model, strong free cash flow generation, and a commitment to shareholder returns, Baytex Energy Corp. (NYSE:BTE) is well placed to outperform. For investors seeking exposure to the energy sector at a penny stock price with real earnings power, BTE is a smart bet for 2025 and beyond.
05. Conduent Incorporated (NASDAQ:CNDT)
Latest TTM Net Income: $266.00 Million
Closing price on June 26: $2.69
Conduent Incorporated (NASDAQ:CNDT) is gaining traction as one of the most promising penny stocks in the digital services space. With a trailing twelve month net income of $266 million and a share price of just $2.69 (as of June 26), Conduent is a low cost, high potential play that’s worth a closer look.
The company had a solid start to 2025, beating earnings expectations in Q1 with an EPS of 0.13 vs. an expected 0.19. It posted $751 million in adjusted revenue and delivered $37 million in adjusted EBITDA, improving its margin to 4.9%, a 50 basis point increase from the previous year. While total revenue declined year over year, key segments like transportation showed meaningful margin improvement, up 380 basis points, highlighting operational progress.
A major catalyst behind Conduent Incorporated (NASDAQ:CNDT) optimism is its active portfolio restructuring. The company has already completed $800 million in divestitures, paid down $639 million in debt, and repurchased 61 million shares, moves that strengthen its balance sheet and pave the way for leaner, more profitable operations. Management is targeting another $350 million in asset sales in 2025, signaling more upside ahead.
Growth in government and commercial sales pipelines, currently at $3.2 billion, up 16% YoY, further supports the company’s recovery story. Strategic investments in AI based fraud detection and offshore capacity are also starting to bear fruit, especially in the government segment.
Although Q1 free cash flow was negative (typical for H1), the company expects a turnaround in H2 as cost saving programs take full effect. For investors seeking a profitable, undervalued digital transformation stock with improving fundamentals, Conduent Incorporated (NASDAQ:CNDT) offers a compelling penny stock opportunity in 2025.
04. Ultrapar Participações S.A. (NYSE:UGP)
Latest TTM Net Income: $402.61 Million
Closing price on June 26: $3.09
Ultrapar Participações S.A. (NYSE:UGP) is proving to be a solid pick among penny stocks in 2025, backed by strong fundamentals and strategic shifts in its operations. With a trailing twelve month net income of $402.61 million and a modest stock price of $3.09 as of June 26, UGP stands out as a low priced stock with strong earnings power.
Despite a challenging macro environment and sector wide irregularities in Brazil’s fuel distribution market, Ultrapar Participações S.A. (NYSE:UGP) delivered recurring EBITDA of BRL1.183 billion in Q1 2025. Net income for the quarter came in at BRL502 million, showcasing its ability to stay profitable even amid volatility. The company’s performance was partially affected by a BRL139 million loss from its logistics subsidiary Hidrovias, but that didn’t stop it from maintaining healthy margins and cash flows.
One of the biggest bullish drivers is Ultrapar Participações S.A. (NYSE:UGP) strategic focus on streamlining operations. The sale of its cabotage operations for BRL750 million, alongside a BRL1.2 billion capital raise, helped improve its leverage profile and placed the company for future growth. Ultrapar Participações S.A. (NYSE:UGP) now holds a majority stake in Hidrovias, signaling confidence in its long term value potential.
Operational highlights include a 12% same store sales increase at Ipiranga's convenience chain AmPm and a 6% YoY rise in Ipiranga’s EBITDA. Ultragaz, the LPG distribution arm, posted solid volumes, while Ultracargo continued delivering stable returns with improved spot sales and efficient cost control.
With its robust infrastructure footprint, consistent cash generation, and enhanced financial flexibility, Ultrapar Participações S.A. (NYSE:UGP) is executing well on its long term growth strategy. For investors looking for profitable penny stocks with scale, stability, and upside in a recovering Latin American energy market, Ultrapar Participações S.A. (NYSE:UGP) deserves a spot on the watchlist.
03. Gerdau S.A. (NYSE:GGB)
Latest TTM Net Income: $590.07 Million
Closing price on June 26: $2.89
Gerdau S.A. (NYSE:GGB) is a standout among penny stocks, delivering steady profitability and resilience across economic cycles. With a trailing twelve month net income of $590.07 million and a current share price of just $2.89, Gerdau S.A. (NYSE:GGB) offers strong value for long term investors seeking income and growth.
The Brazilian steelmaker reported BRL758 million in net income and BRL2.4 billion in adjusted EBITDA in Q1 2025, with North American operations leading the recovery thanks to stronger volumes and improved pricing. Although its Brazil segment faced margin pressures from new project costs and an influx of imported steel, Gerdau S.A. (NYSE:GGB) diversified global footprint helped balance performance, highlighting its strategic geographic resilience.
Gerdau continues to invest in its long term competitive edge. It allocated BRL1.4 billion in CapEx this quarter, focusing on mining expansion at Miguel Burnier and flat steel production at Ouro Branco, projects expected to enhance margins and reduce reliance on third party inputs. The company’s net debt to EBITDA ratio remains low at 0.69x, reflecting a healthy balance sheet and disciplined capital management.
A shareholder friendly approach adds to GGB’s appeal: the company returned 74% of Q1 net income via dividends and buybacks, well above its stated payout policy. The ongoing share repurchase program, already 44% complete, further underscores management's confidence in the stock’s value.
Looking ahead, Gerdau S.A. (NYSE:GGB) expects continued strength in the U.S. market, supported by a robust construction backlog and favorable tariff policies. In Brazil, the company remains cautious but hopeful for stronger trade protections. With strong fundamentals, solid cash flows, and strategic capital deployment, Gerdau S.A. (NYSE:GGB) is one of the most profitable penny stocks to watch in 2025.
02. Banco Bradesco S.A. (NYSE:BBD)
Latest TTM Net Income: $3.34 Billion
Closing price on June 26: $3.01
Banco Bradesco S.A. (NYSE:BBD) stands out as one of the most profitable penny stocks in 2025, combining a rock solid financial foundation with forward thinking innovation. With a trailing twelve month net income of $3.34 billion and a modest share price of $3.01 as of June 26, BBD offers investors a rare opportunity to gain exposure to a major Brazilian bank at a bargain valuation.
In Q1 2025, Banco Bradesco S.A. (NYSE:BBD) posted a recurring net income of BRL5.9 billion, up over 39% year over year, with an impressive Return on Average Equity (ROAE) of 14.4%. This strong profitability was driven by robust revenue across three major pillars, interest income, insurance, and fee based services.
The bank’s net interest income (NII) grew nearly 14% year over year, reaching BRL16.8 billion, supported by disciplined loan growth and high quality credit underwriting. Collateralized lending, especially in rural and real estate financing, helped maintain low delinquencies. Additionally, Bradesco’s insurance arm added major upside, with premium revenue surging over 25% and a standout ROAE of 22.4%.
On the tech front, Banco Bradesco S.A. (NYSE:BBD) is aggressively modernizing its operations. With over 1,400 new tech hires and extensive use of Generative AI (GenAI) across customer service and internal productivity tools, the bank is streamlining operations and expanding digital reach.
Cost discipline is another highlight. Despite significant transformation investments, operating expenses were kept in check and even fell 8.6% quarter over quarter. Meanwhile, the bank continues to prune underperforming branches and scale its digital ecosystem.
With strong earnings momentum, high credit quality, innovative tech adoption, and shareholder focused strategies, Banco Bradesco is in a suitable position for long term growth. At just over $3 per share, Banco Bradesco S.A. (NYSE:BBD) offers an attractive risk reward profile for investors looking to tap into one of the most profitable penny stocks in emerging markets.
01. Lloyds Banking Group plc (NYSE:LYG)
Latest TTM Net Income: $4.93 Billion
Closing price on June 26: $4.21
At the top of our list of ten most profitable penny stocks to invest in now stands Lloyds Banking Group plc (NYSE:LYG). It is proving to be one of the most fundamentally sound penny stocks in the market, offering investors a powerful combination of profitability, scale, and steady income. With a trailing twelve month net income of $4.93 billion and a current share price of $4.21, Lloyds Banking Group plc (NYSE:LYG) stands out as a value play in the financial sector.
In its Q1 2025 earnings report, Lloyds Banking Group plc (NYSE:LYG) beat analyst expectations with earnings per share (EPS) of $0.11, versus the $0.08 consensus. This performance reflects strong operational momentum, underpinned by a diversified business model spanning retail banking, commercial lending, and insurance.
The bank reported statutory profit after tax of £1.1 billion, delivering a solid return on tangible equity (ROTE) of 12.6%. Net income rose to £4.4 billion, up 4% year over year, supported by a healthy net interest margin of 3.03%, up 6 basis points from the previous quarter. Deposits grew by £5 billion, while lending increased £7.1 billion, fueled by strong mortgage and commercial activity.
Even with front loaded severance expenses and inflationary pressures, operating costs were well managed at £2.6 billion. Excluding severance, costs only rose 3% year over year, highlighting Lloyds Banking Group plc (NYSE:LYG) continued focus on cost discipline and efficiency.
Asset quality remains robust, with an impairment charge of £309 million, translating to a conservative asset quality ratio of 27 basis points. The bank’s CET1 capital ratio stands at a healthy 13.5%, ensuring resilience amid economic uncertainty.
With steady income growth, a strong balance sheet, prudent risk management, and clear visibility on its 2025 outlook, Lloyds Banking Group plc (NYSE:LYG) offers both stability and upside potential, making it an attractive penny stock for investors seeking high quality exposure to the U.K. banking sector.
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