The Australian market is poised for a positive start, with the ASX 200 futures indicating a slight rise as global markets remain resilient despite recent tariff announcements. In this context, investors often seek opportunities in smaller or newer companies that can offer growth potential at accessible price points. Penny stocks, though an outdated term, still capture this niche by representing companies with solid foundations and the potential for significant returns.

Top 10 Penny Stocks In Australia

Click here to see the full list of 1,031 stocks from our ASX Penny Stocks screener.

Let's review some notable picks from our screened stocks.

Cue Energy Resources

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

Overview: Cue Energy Resources Limited is an oil and gas company involved in the exploration, development, and production of petroleum products with a market cap of A$80.35 million.

Operations: Cue Energy Resources generates revenue of A$49.66 million from its production and exploration activities in the hydrocarbons sector.

Market Cap: A$80.35M

Cue Energy Resources, with a market cap of A$80.35 million, operates in the oil and gas sector, generating A$49.66 million in revenue. Despite recent negative earnings growth of -6.7%, its 5-year average shows strong profitability growth at 36.2% annually, supported by high-quality earnings and a robust return on equity of 21.9%. The company is debt-free but faces challenges as short-term assets (A$26.8M) do not cover long-term liabilities (A$42.1M). Recent delisting from OTC Equity due to inactivity may impact investor sentiment despite stable weekly volatility and no significant shareholder dilution over the past year.

• Click here to discover the nuances of Cue Energy Resources with our detailed analytical financial health report.
• Examine Cue Energy Resources' past performance report to understand how it has performed in prior years.

Reject Shop

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

Overview: The Reject Shop Limited operates as a retailer of discount variety merchandise in Australia, with a market cap of A$109.64 million.

Operations: The company generates revenue of A$852.74 million from its retailing operations in discount variety merchandise.

Market Cap: A$109.64M

Reject Shop, with a market cap of A$109.64 million, operates debt-free and has seen its earnings grow by 49% annually over the past five years, though recent performance shows negative earnings growth of -54.2%. Its short-term assets (A$203.7M) comfortably cover both short-term (A$161.9M) and long-term liabilities (A$158.7M). The company offers a relatively attractive Price-To-Earnings ratio of 23.3x compared to the industry average of 33.8x and maintains high-quality earnings without significant shareholder dilution recently. However, profit margins have declined to 0.6% from last year's 1.3%, indicating potential profitability challenges ahead.

• Click here and access our complete financial health analysis report to understand the dynamics of Reject Shop.
• Review our growth performance report to gain insights into Reject Shop's future.

Vmoto

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

Overview: Vmoto Limited, with a market cap of A$40.70 million, develops, manufactures, markets, and distributes electric two-wheel vehicles globally.

Operations: The company generates revenue of A$50.64 million from the manufacture and distribution of electric two-wheel vehicles.

Market Cap: A$40.7M

Vmoto Limited, with a market cap of A$40.70 million, has seen its share price highly volatile over the past three months. Despite being unprofitable, it has reduced losses by 20.2% annually over five years and maintains a solid financial position with short-term assets (A$72.4M) exceeding both short-term (A$19.1M) and long-term liabilities (A$1.5M). The company completed a significant share buyback program in early 2025, repurchasing 9.46% of its shares for A$4.75 million amid plans to delist from the ASX, while facing shareholder activism aimed at board restructuring.

• Unlock comprehensive insights into our analysis of Vmoto stock in this financial health report.
• Learn about Vmoto's historical performance here.

Make It Happen

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Curious About Other Options?

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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 ASX:CUE ASX:TRS and ASX:VMT.

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