TSX Penny Stocks to Watch in October 2024

The Canadian stock market has had a robust year, with the TSX posting impressive gains of over 17% on the back of economic growth, favorable central bank policies and rising corporate profits. As investors navigate this positive climate, attention often shifts to smaller or newer companies that can offer unique opportunities. While the term “penny stocks” may seem outdated, these stocks continue to captivate investors with their affordability and growth potential when supported by strong financials.

Top 10 Penny Stocks in Canada

Click here to see the full list of 947 stocks from our TSX Penny Stocks Screener.

Below we present a selection of the stocks filtered out from our screen.

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

Overview: Genesis Land Development Corp. is an integrated real estate developer and home builder focused on residential and developed properties in the Greater Calgary area with a market capitalization of C$220.90 million.

Operations: Genesis Land Development’s revenue comes primarily from Home Building, which generated CA$216.55 million, and Land Development – ​​Genesis, which contributed CA$94.55 million.

Market capitalization: $220.9 million CAD

Genesis Land Development Corp. has demonstrated robust financial performance, with profit growth of 175.1% last year and a significant year-on-year increase in net profit in the second quarter of 2024. Despite a low return on equity of 9.9%, the price-to-earnings ratio of 9 suggests that the company may be undervalued compared to the Canadian market average. The company’s current assets significantly exceed its short-term and long-term liabilities, indicating strong liquidity. Recent executive appointments are aimed at strengthening operational efficiency and growth, particularly in land development activities in Calgary.

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

Overview: Neptune Digital Assets Corp. builds, owns and operates digital currency infrastructure assets in Canada with a market capitalization of C$50.26 million.

Operations: The company generates data processing revenue of C$2.01 million.

Market capitalization: $50.26 million CAD

Neptune Digital Assets Corp. has a market capitalization of 50.26 million Canadian dollars and generates sales of 2.01 million Canadian dollars from data processing. However, the company remains unprofitable and is unlikely to achieve profitability in the near future. The company is debt-free and has a strong liquidity position, ensuring a maturity of more than three years even with declining free cash flow trends. Recent earnings reports show net income growth despite lower sales compared to the previous year, indicating some improvements in operational efficiency. Neptune’s management and board have experience that can support strategic decisions in the face of financial challenges.

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

Overview: Palisades Goldcorp Ltd. is a natural resources investment company and merchant bank that invests in early-stage companies in the natural resources and mining sectors with a market capitalization of C$86.71 million.

Operations: The Company’s revenue segment is focused on metals and mining, particularly gold and other precious metals, with reported revenue of CA$2.65 million.

Market capitalization: $86.71 million CAD

Palisades Goldcorp Ltd. has a market capitalization of 86.71 million Canadian dollars before sales and is unprofitable and reports a net loss of 35.29 million Canadian dollars for the second quarter of 2024. Despite the lack of debt and sufficient liquidity for more than three years due to positive free funds due to cash flow growth, current assets do not cover long-term liabilities (CA$38.1 million). The company recently experienced significant changes, including exclusion from the S&P/TSX Venture Composite Index and the resignation of board member William Hayden. Although the company has conducted some share buybacks, financial challenges remain, with losses mounting at a rate of 29.8% annually over five years.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term focused analysis based on fundamental data. Note that our analysis may not reflect the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies covered in this article include TSX:GDC, TSXV:NDA and TSXV:PALI.

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