TSX Penny Stocks To Watch In July 2026

As the Canadian market navigates rising oil prices and higher yields, investors are closely watching how these factors might influence central bank decisions and economic resilience. In this context, penny stocks—often representing smaller or newer companies—continue to offer intriguing opportunities for those looking beyond the major players. While the term may seem outdated, these stocks can still provide value when backed by strong financials, and we've identified three such examples that combine balance sheet strength with potential for significant returns.

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

Cronos Group (TSX:CRON)

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

Overview: Cronos Group Inc. is a cannabinoid company involved in the cultivation, production, distribution, and marketing of cannabis products across Canada, Israel, and internationally with a market cap of CA$1.52 billion.

Operations: The company's revenue is primarily derived from the cultivation, manufacture, and marketing of cannabis and cannabis-derived products, totaling $159.54 million.

Market Cap: CA$1.52B

Cronos Group, with a market cap of CA$1.52 billion, has been navigating the challenges of profitability but shows potential through strategic initiatives. Despite being unprofitable, the company has reduced losses significantly over five years and is debt-free, with short-term assets comfortably covering liabilities. Recent earnings reveal improved revenue and net income compared to last year. The introduction of Spinach STIX pre-rolls aims to capitalize on consumer demand in Canada’s cannabis market. Additionally, Cronos's share repurchase program reflects confidence in its financial health by utilizing available cash resources for buybacks until 2027.

• Click here to discover the nuances of Cronos Group with our detailed analytical financial health report.
• Assess Cronos Group's future earnings estimates with our detailed growth reports.

Cannara Biotech (TSX:LOVE)

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

Overview: Cannara Biotech Inc., along with its subsidiaries, focuses on the indoor cultivation, processing, and sale of cannabis and cannabis-derivative products in Canada, with a market cap of CA$183.73 million.

Operations: The company's revenue is primarily derived from its cannabis operations, generating CA$112.77 million, with an additional CA$3.93 million coming from real estate activities.

Market Cap: CA$183.73M

Cannara Biotech, with a market cap of CA$183.73 million, is actively enhancing its financial position through strategic initiatives and partnerships. The company recently announced a share repurchase program to buy back up to 2% of its shares, indicating confidence in its valuation. Revenue reached CA$31.83 million for the third quarter, reflecting growth from the previous year. Cannara's agreement with Curaleaf International for bulk cannabis supply underscores potential international expansion, while collaboration with Blue River aims to introduce innovative products in Canada. Despite lower profit margins compared to last year, Cannara maintains strong asset coverage over liabilities and satisfactory debt levels.

• Jump into the full analysis health report here for a deeper understanding of Cannara Biotech.
• Understand Cannara Biotech's earnings outlook by examining our growth report.

BioRem (TSXV:BRM)

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

Overview: BioRem Inc. is a clean technology engineering company that designs, manufactures, distributes, and sells air pollution control systems to eliminate odors, volatile organic compounds, and hazardous air pollutants with a market cap of CA$49.14 million.

Operations: BioRem Inc. has not reported any specific revenue segments.

Market Cap: CA$49.14M

BioRem Inc., with a market cap of CA$49.14 million, has demonstrated robust financial performance and operational stability, highlighted by its recent earnings report. The company reported second-quarter sales of CA$15.69 million, a significant increase from the previous year's CA$9.43 million, with net income rising to CA$1.98 million from CA$0.74 million. BioRem's solid balance sheet shows short-term assets exceeding both short and long-term liabilities, while its debt is well-covered by operating cash flow and interest payments are comfortably managed by EBIT coverage of 57.3 times interest repayments, indicating effective financial management in the penny stock space.

• Dive into the specifics of BioRem here with our thorough balance sheet health report.
• Review our historical performance report to gain insights into BioRem's track record.

Make It Happen

• Click through to start exploring the rest of the 323 TSX Penny Stocks now.
• Want To Explore Some Alternatives? We've found 7 US stocks that are forecast to pay a dividend yeild of over 6% next year. See the full list for free.

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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