UK Penny Stocks To Watch In July 2026

The UK market has been experiencing some turbulence, with the FTSE 100 and FTSE 250 indices closing lower recently due to weak trade data from China, highlighting global economic challenges. In such a scenario, investors might look beyond the major indices and consider penny stocks as a potential area of interest. Despite being an older term, penny stocks—often representing smaller or newer companies—can offer unique opportunities for those seeking value and growth outside of traditional investments.

Underneath we present a selection of stocks filtered out by our screen.

Peel Hunt (AIM:PEEL)

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

Overview: Peel Hunt Limited operates as an integrated investment bank, providing research, distribution, and execution services in the United Kingdom with a market cap of £120.35 million.

Operations: The company's revenue is derived from three main segments: Execution Services (£47.77 million), Investment Banking (£67.09 million), and Research & Distribution (£28.59 million).

Market Cap: £120.35M

Peel Hunt Limited, with a market cap of £120.35 million, has shown financial resilience by becoming profitable in the last year, reporting a net income of £14.91 million compared to a loss previously. The company maintains high-quality earnings and has reduced its debt-to-equity ratio significantly over five years. Its short-term assets exceed both short and long-term liabilities, indicating strong liquidity. However, earnings are forecasted to decline by 23.5% annually over the next three years, highlighting potential challenges ahead despite recent profitability and dividend affirmations at 4.9 pence per share for FY26 ending March 31st.

• Click here to discover the nuances of Peel Hunt with our detailed analytical financial health report.
• Gain insights into Peel Hunt's future direction by reviewing our growth report.

CAB Payments Holdings (LSE:CABP)

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

Overview: CAB Payments Holdings plc operates through its subsidiaries to offer business-to-business cross-border payments and foreign exchange services across various regions including the Americas, the United Kingdom, Europe, Africa, the Middle East, and Asia with a market cap of £200.55 million.

Operations: The company's revenue segment includes £86.08 million from Unclassified Services, focusing on business-to-business cross-border payments and foreign exchange services across multiple regions.

Market Cap: £200.55M

CAB Payments Holdings, with a market cap of £200.55 million, operates debt-free and maintains high-quality earnings despite recent negative earnings growth. The company's net profit margin has slightly improved to 15.7%. However, its short-term assets (£919.8M) fall short of covering its short-term liabilities (£1.5B), indicating liquidity challenges. Trading at 31.7% below estimated fair value suggests potential undervaluation, but the management team's limited experience (1.4 years average tenure) may pose risks in navigating future growth forecasted at 24.77% annually. Recent M&A interest from StoneX Group underscores the company's perceived value and strategic importance in cross-border payments.

• Take a closer look at CAB Payments Holdings' potential here in our financial health report.
• Assess CAB Payments Holdings' future earnings estimates with our detailed growth reports.

R.E.A. Holdings (LSE:RE.)

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

Overview: R.E.A. Holdings plc is involved in the cultivation of oil palms in East Kalimantan, Indonesia, with a market capitalization of £50.41 million.

Operations: The company's revenue is primarily derived from its plantations segment, which accounts for $193 million, supplemented by $1.9 million from its stone operation and sand interest.

Market Cap: £50.41M

R.E.A. Holdings, with a market cap of £50.41 million, primarily generates revenue from its oil palm plantations in East Kalimantan, Indonesia. Despite being unprofitable, the company has reduced losses by 31.9% annually over five years and maintains a sufficient cash runway for over three years due to positive free cash flow. Recent executive changes may impact strategic direction while debt remains high with short-term assets not covering long-term liabilities of $202.8M. Analysts agree on potential stock price growth by 115%, but the company's negative return on equity and unprofitability present ongoing challenges despite stable weekly volatility at 6%.

• Navigate through the intricacies of R.E.A. Holdings with our comprehensive balance sheet health report here.
• Review our growth performance report to gain insights into R.E.A. Holdings' future.

Where To Now?

• Click through to start exploring the rest of the 276 UK Penny Stocks now.
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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.

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