The Australian market has shown resilience, with the ASX200 closing up 0.36% at 8,408 points as investors adjust to the new Trump administration and respond positively to tariff outcomes. In this context of market fluctuations, identifying stocks with robust financial fundamentals becomes crucial for investors seeking opportunities. While the term 'penny stocks' might seem outdated, these smaller or newer companies can still offer significant growth potential when backed by solid financials.

Click here to see the full list of 1,024 stocks from our ASX Penny Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

★★★★★☆

COSOL Limited, with a market cap of A$170.16 million, offers information technology services across the Asia Pacific, North America, Europe, the Middle East, Africa, and other international markets.

The company's revenue is primarily derived from its Asia Pacific segment, which generated A$88.99 million, followed by its North America segment with A$13.88 million.

A$170.16M

COSOL Limited, with a market cap of A$170.16 million, shows promise in the penny stock sector due to its stable financial position and growth prospects. Its short-term assets of A$30.1 million exceed both short and long-term liabilities, indicating strong liquidity. The company trades at a significant discount to estimated fair value and offers good relative value compared to peers. Despite lower recent earnings growth (6.7%) compared to its 5-year average (27.5%), COSOL's earnings are forecasted to grow by 23.84% annually, supported by well-covered interest payments and satisfactory debt levels, though management changes may impact strategic continuity.

★★★★★★

Overview: FAR Limited is an oil and gas exploration and development company operating in Africa, with a market cap of A$54.98 million.