<div id="readability-page-1"><div><p>As the U.S. stock market edges higher with the S&amp;P 500 reaching new milestones, investors are keenly watching for signals from the Federal Reserve and major tech earnings that could influence future trends. Amidst this backdrop, penny stocks—often representing smaller or newer companies—continue to offer intriguing opportunities for those seeking growth at lower price points. Though considered a niche area, these stocks can shine when backed by solid financial health and fundamentals, presenting potential upside while mitigating some of the associated risks.</p><h3>Top 10 Penny Stocks In The United States</h3><table><tbody><tr><td><strong>Name</strong></td><td><strong>Share Price</strong></td><td><strong>Market Cap</strong></td><td><strong>Rewards &amp; Risks</strong></td></tr><tr><td>Dingdong (Cayman) (DDL)</td><td>$2.86</td><td>$591.48M</td><td>✅ 3 ⚠️ 1 View Analysis &gt;</td></tr><tr><td>Waterdrop (WDH)</td><td>$1.67</td><td>$614.83M</td><td>✅ 4 ⚠️ 0 View Analysis &gt;</td></tr><tr><td>WM Technology (MAPS)</td><td>$0.8033</td><td>$141.11M</td><td>✅ 4 ⚠️ 1 View Analysis &gt;</td></tr><tr><td>LexinFintech Holdings (LX)</td><td>$2.95</td><td>$499.74M</td><td>✅ 4 ⚠️ 2 View Analysis &gt;</td></tr><tr><td>Tuya (TUYA)</td><td>$2.17</td><td>$1.29B</td><td>✅ 4 ⚠️ 1 View Analysis &gt;</td></tr><tr><td>Golden Growers Cooperative (GGRO.U)</td><td>$5.00</td><td>$77.45M</td><td>✅ 1 ⚠️ 5 View Analysis &gt;</td></tr><tr><td>Cricut (CRCT)</td><td>$4.40</td><td>$931.68M</td><td>✅ 2 ⚠️ 2 View Analysis &gt;</td></tr><tr><td>BAB (BABB)</td><td>$0.9301</td><td>$6.69M</td><td>✅ 2 ⚠️ 3 View Analysis &gt;</td></tr><tr><td>Lifetime Brands (LCUT)</td><td>$3.75</td><td>$88.13M</td><td>✅ 3 ⚠️ 2 View Analysis &gt;</td></tr><tr><td>Universal Safety Products (UUU)</td><td>$4.90</td><td>$12.14M</td><td>✅ 2 ⚠️ 4 View Analysis &gt;</td></tr></tbody></table><p>Click here to see the full list of 326 stocks from our  US Penny Stocks screener.</p><p>Let's review some notable picks from our screened stocks.</p><h2>Definitive Healthcare (DH)</h2><p><strong>Simply Wall St Financial Health Rating:</strong> ★★★★★☆</p><p><strong>Overview:</strong> Definitive Healthcare Corp. offers a SaaS healthcare commercial intelligence platform operating both in the United States and internationally, with a market cap of $345.63 million.</p><p><strong>Operations:</strong> The company generates revenue of $242.28 million from its Internet Information Providers segment.</p><p><strong>Market Cap:</strong> $345.63M</p><p>Definitive Healthcare Corp., with a market cap of US$345.63 million, operates a SaaS healthcare platform and is considered unprofitable, yet maintains a strong cash runway exceeding three years due to positive free cash flow. The company has managed to cover both short-term and long-term liabilities with its assets, suggesting financial stability despite recent losses. It trades at 55% below estimated fair value and shows good relative value compared to peers. Recent earnings reports indicate reduced losses compared to previous periods, but profitability remains elusive in the near term. Share buybacks have not significantly diluted shareholder value recently.</p><ul><li>Click to explore a detailed breakdown of our findings in Definitive Healthcare's financial health report.</li><li>Gain insights into Definitive Healthcare's outlook and expected performance with our report on the company's earnings estimates.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/814e07d4-65b6-4122-8c7a-d215d747d83a/chart/financial-position-analysis?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/814e07d4-65b6-4122-8c7a-d215d747d83a/chart/financial-position-analysis"/><figcaption>DH Financial Position Analysis as at Jan 2026</figcaption></figure><h2>Duluth Holdings (DLTH)</h2><p><strong>Simply Wall St Financial Health Rating:</strong> ★★★★☆☆</p><p><strong>Overview:</strong> Duluth Holdings Inc. operates in the United States, selling casual wear, workwear, outdoor apparel, and accessories for men and women with a market capitalization of $88.88 million.</p><p><strong>Operations:</strong> The company's revenue from online retailing amounts to $590.56 million.</p><p><strong>Market Cap:</strong> $88.88M</p><p>Duluth Holdings Inc., with a market cap of US$88.88 million, faces challenges as it remains unprofitable and has seen increased losses over the past five years. Despite this, the company's short-term assets exceed both its short and long-term liabilities, indicating some financial stability. Recent earnings reports show reduced losses compared to previous periods, though sales have declined year-over-year. The company lowered its net sales guidance for fiscal 2026, reflecting ongoing operational difficulties. While trading at nearly 90% below estimated fair value suggests potential upside, high volatility and insufficient cash flow coverage of debt remain concerns for investors.</p><ul><li>Navigate through the intricacies of Duluth Holdings with our comprehensive balance sheet health report here.</li><li>Understand Duluth Holdings' earnings outlook by examining our growth report.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0d0c3e16-87e8-4d03-84ca-6ae8fb4fd0fb/chart/financial-position-analysis?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0d0c3e16-87e8-4d03-84ca-6ae8fb4fd0fb/chart/financial-position-analysis"/><figcaption>DLTH Financial Position Analysis as at Jan 2026</figcaption></figure><h2>Prelude Therapeutics (PRLD)</h2><p><strong>Simply Wall St Financial Health Rating:</strong> ★★★★★☆</p><p><strong>Overview:</strong> Prelude Therapeutics Incorporated is a clinical-stage precision oncology company dedicated to discovering and developing novel cancer medicines for underserved patients, with a market cap of $167.27 million.</p><p><strong>Operations:</strong> The company generates revenue from its Biotechnology (Startups) segment, totaling $10.5 million.</p><p><strong>Market Cap:</strong> $167.27M</p><p>Prelude Therapeutics, with a market cap of US$167.27 million, operates in the precision oncology space and remains pre-revenue despite reporting US$6.5 million in sales for Q3 2025. The company is debt-free with short-term assets exceeding liabilities, yet faces challenges due to increased volatility and a limited cash runway of seven months as of September 2025. Recent strategic moves include a private placement raising US$25 million and an exclusive option agreement with Incyte for its JAK2V617F inhibitor program. Despite unprofitability, earnings are forecasted to grow significantly at 55.66% annually, presenting potential opportunities amidst high volatility.</p><ul><li>Take a closer look at Prelude Therapeutics' potential here in our financial health report.</li><li>Gain insights into Prelude Therapeutics' future direction by reviewing our growth report.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/a558295b-637c-4ff8-9788-f601ffb51c77/chart/financial-position-analysis?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/a558295b-637c-4ff8-9788-f601ffb51c77/chart/financial-position-analysis"/><figcaption>PRLD Financial Position Analysis as at Jan 2026</figcaption></figure><h2>Where To Now?</h2><ul><li>Unlock more gems!  Our  US Penny Stocks screener has unearthed 323 more companies for you to explore.Click here to unveil our expertly curated list of 326  US Penny Stocks.</li><li>Looking For Alternative Opportunities? We've found 13 US stocks that are forecast to pay a dividend yeild of over 6% next year. See the full list for free.</li></ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p></div></div>

<p>As the U.S. stock market rises, penny stocks are attracting investor interest. Definitive Healthcare, with a market cap of $345.63 million, operates a SaaS healthcare platform and shows financial stability despite being unprofitable. Duluth Holdings, valued at $88.88 million, faces challenges with increased losses and declining sales. Prelude Therapeutics, a clinical-stage oncology company with a market cap of $167.27 million, is pre-revenue but has potential for growth despite a limited cash runway. Investors are encouraged to explore more penny stocks for growth opportunities.</p>

Simplywall

SPDR S&P Retail ETF

SPDR S&P Biotech

Duluth

ALPS Medical Breakthrough

Ark Genomic Revolution ETF

Proshares Ultra Nasdaq Biotech

iShares Global Healthcare

Prelude Therapeutics

Definitive Healthcare

VanEck Retail ETF

Invesco Biotechnology & Genome ETF

VanEck Biotech ETF

iShares Biotechnology ETF

First Trust NYSE Arca Biotech Index Fd

Amplify Online Retail ETF

VG Health

iShares US Pharma

ProShares Online Retail

Health Care Select Sector SPDR

Global X E-commerce ETF

Definitive Healthcare And 2 Other Promising Penny Stocks