ASX Penny Stocks To Watch In July 2026

Australian investors are starting Week 30 on a positive note, with futures indicating a potential 0.6% rise at the open, despite ongoing geopolitical tensions and Wall Street's recent downturn. In this context, penny stocks—often seen as smaller or newer companies—remain an intriguing investment area due to their affordability and growth potential when supported by strong financials. Although the term "penny stocks" might seem outdated, these investments can still offer unique opportunities for those seeking to explore under-the-radar companies poised for long-term success.

We'll examine a selection from our screener results.

EVZ (ASX:EVZ)

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

Overview: EVZ Limited, with a market cap of A$68.04 million, operates in the engineering services sectors across Australia and Asia through its subsidiaries.

Operations: The company's revenue is derived from its Building Products segment, which generated A$46.93 million, and its Energy & Resources segment, contributing A$72.58 million.

Market Cap: A$68.04M

EVZ Limited, with a market cap of A$68.04 million, operates debt-free and has shown significant earnings growth of 73.2% over the past year, surpassing the Construction industry average. Despite its low return on equity at 6.9%, EVZ's net profit margins have improved from 1.3% to 2.2%. The company’s short-term assets of A$45 million comfortably cover both short-term and long-term liabilities, indicating solid financial health in that regard. However, recent insider selling could be a concern for potential investors assessing management confidence in future performance despite stable weekly volatility at 12%.

• Click here and access our complete financial health analysis report to understand the dynamics of EVZ.
• Explore historical data to track EVZ's performance over time in our past results report.

Otto Energy (ASX:OEL)

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

Overview: Otto Energy Limited is an oil and gas company engaged in exploration, production, and sales activities in North America with a market capitalization of A$33.57 million.

Operations: The company generates revenue from its Oil & Gas - Exploration & Production segment, amounting to $14.12 million.

Market Cap: A$33.57M

Otto Energy Limited, with a market cap of A$33.57 million, has transitioned to profitability in the past year, distinguishing itself from the broader Oil and Gas sector's negative growth. The company operates debt-free, enhancing its financial stability and eliminating concerns about interest coverage. Its short-term assets of US$21.5 million exceed both short and long-term liabilities, indicating sound liquidity management. Otto's return on equity stands at a robust 29.1%, reflecting efficient profit generation relative to shareholder equity. Despite high volatility over three months, it trades significantly below estimated fair value, suggesting potential undervaluation in the market.

• Dive into the specifics of Otto Energy here with our thorough balance sheet health report.
• Evaluate Otto Energy's historical performance by accessing our past performance report.

Singular Health Group (ASX:SHG)

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

Overview: Singular Health Group Ltd is a medical technology company focused on developing and providing 3DiCom software in Australia, with a market cap of A$71.27 million.

Operations: The company's revenue is primarily derived from the provision and development of medical technology, totaling A$0.96 million.

Market Cap: A$71.27M

Singular Health Group Ltd, with a market cap of A$71.27 million, is currently pre-revenue with earnings totaling A$0.96 million. Despite being debt-free and having short-term assets of A$12.2 million that exceed both short and long-term liabilities, the company faces financial challenges due to its unprofitability and less than one year of cash runway based on current free cash flow trends. The board's average tenure of 5.5 years indicates experienced leadership; however, the company's share price remains highly volatile over the past three months, reflecting potential investor uncertainty in its future prospects within the medical technology sector.

• Take a closer look at Singular Health Group's potential here in our financial health report.
• Learn about Singular Health Group's historical performance here.

Summing It All Up

• Investigate our full lineup of 408 ASX Penny Stocks right here.
• Seeking Other Investments? Trump's oil boom is here — pipelines are primed to profit. Discover the 23 US stocks riding the wave.

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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