ASX Penny Stocks To Consider In September 2026

The Australian sharemarket is poised for a positive start, buoyed by gains in global markets and easing inflation pressures, although local investors remain mindful of potential interest rate changes and geopolitical developments. Amidst this backdrop, penny stocks—often representing smaller or newer companies—continue to capture attention for their affordability and growth potential. Despite the term's somewhat outdated feel, these stocks can offer surprising value when backed by strong financials, making them an intriguing area of exploration for investors seeking opportunities beyond the major players.

Let's take a closer look at a couple of our picks from the screened companies.

Hearts and Minds Investments (ASX:HM1)

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

Overview: Hearts and Minds Investments (ASX:HM1) is an Australian-listed investment company with a market cap of A$659.47 million, focusing on generating long-term capital growth by investing in high-conviction ideas from leading fund managers.

Operations: The company generates its revenue solely from investment activities, amounting to A$83.14 million.

Market Cap: A$659.47M

Hearts and Minds Investments, an Australian-listed investment company, has a market cap of A$659.47 million and focuses on high-conviction ideas from leading fund managers. Despite being debt-free with stable weekly volatility, the company's recent financial performance shows challenges; revenue decreased to A$79.32 million from A$165.48 million last year, and net income dropped to A$46.37 million from A$106.82 million. Although it maintains high-quality earnings and experienced management and board teams, its return on equity is low at 6%, with negative earnings growth over the past year impacting its profitability outlook despite a dividend yield of 6.94%.

• Click to explore a detailed breakdown of our findings in Hearts and Minds Investments' financial health report.
• Understand Hearts and Minds Investments' track record by examining our performance history report.

Judo Capital Holdings (ASX:JDO)

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

Overview: Judo Capital Holdings Limited, with a market cap of A$1.12 billion, operates through its subsidiaries to offer a range of banking products and services tailored for small and medium businesses in Australia.

Operations: The company generates revenue primarily through its Small and Medium Enterprises (SMEs) Lending segment, which accounted for A$404.7 million.

Market Cap: A$1.12B

Judo Capital Holdings Limited, with a market cap of A$1.12 billion, has demonstrated robust earnings growth, increasing by 28.6% over the past year and surpassing the industry average. The company's net interest income rose to A$500.6 million for FY2026, reflecting strong performance in its SME lending segment. Despite high volatility and a low return on equity of 6.3%, Judo's experienced management team and stable funding primarily from customer deposits bolster its financial stability. Analysts expect continued growth with an estimated annual earnings increase of 19.41%, suggesting potential value at current trading levels below fair value estimates.

• Take a closer look at Judo Capital Holdings' potential here in our financial health report.
• Examine Judo Capital Holdings' earnings growth report to understand how analysts expect it to perform.

PolyNovo (ASX:PNV)

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

Overview: PolyNovo Limited is a company that designs, manufactures, and sells biodegradable medical devices across several countries including Australia, New Zealand, the United States, and China with a market cap of A$673.57 million.

Operations: The company generates revenue of A$149.85 million from the development, manufacturing, and commercialization of its NovoSorb technology.

Market Cap: A$673.57M

PolyNovo Limited, with a market cap of A$673.57 million, has shown mixed financial performance recently. The company reported revenue of A$149.85 million for the fiscal year ending June 30, 2026, but net income declined to A$7.34 million from the previous year's A$13.21 million due to a large one-off loss impacting results. Despite this setback, PolyNovo's debt management is strong; it has more cash than total debt and its short-term assets exceed both short-term and long-term liabilities significantly. Recent board changes bring experienced leadership that may guide future strategic growth in its medical technology sector operations across key global markets.

• Unlock comprehensive insights into our analysis of PolyNovo stock in this financial health report.
• Explore PolyNovo's analyst forecasts in our growth report.

Make It Happen

• Access the full spectrum of 396 ASX Penny Stocks by clicking on this link.
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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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