The Australian market recently experienced a shift as profit-taking in Commonwealth Bank impacted the broader indices, while materials stocks like BHP saw a resurgence. Amidst these fluctuations, penny stocks remain an intriguing area for investors seeking potential growth opportunities at lower price points. Though often overlooked, these smaller or newer companies can offer significant upside when they possess strong financials and solid fundamentals.

Click here to see the full list of 474 stocks from our ASX Penny Stocks screener.

We're going to check out a few of the best picks from our screener tool.

★★★★★★

Argosy Minerals Limited, along with its subsidiaries, focuses on the exploration and development of lithium properties in Argentina and the United States, with a market cap of A$49.50 million.

Argosy Minerals Limited does not report any specific revenue segments.

A$49.5M

Argosy Minerals Limited, with a market cap of A$49.50 million, is pre-revenue and focuses on lithium exploration in Argentina and the US. Despite being debt-free and having short-term assets (A$6.2M) exceeding liabilities, it remains unprofitable with losses increasing annually by 70.9% over five years. The company has a sufficient cash runway for more than a year based on current free cash flow but faces high share price volatility recently rising from 18% to 26%. Its experienced board averages 3.3 years tenure, though management experience data is insufficient for assessment.

★★★★★☆

Overview: Austin Engineering Limited, with a market cap of A$220.29 million, manufactures, repairs, overhauls, and supplies mining attachment products and related services for the industrial and resources sectors.