ASX Penny Stocks To Watch In May 2026

The Australian market is experiencing a rare uptick, with shares set to rise amid ongoing U.S.-Iran negotiations and anticipation of Jim Chalmers' ambitious federal budget. Despite the vintage connotation of "penny stocks," these smaller or newer companies continue to offer intriguing opportunities for growth at lower price points. When backed by solid financials, penny stocks can present a compelling investment case, combining potential value and growth that may be overlooked in larger firms.

Top 10 Penny Stocks In Australia

Name Share Price Market Cap Financial Health Rating Kinatico (ASX:KYP) A$0.16 A$69.13M ★★★★★★ West African Resources (ASX:WAF) A$3.20 A$3.66B ★★★★★★ Regal Partners (ASX:RPL) A$2.63 A$967.16M ★★★★★★ Praemium (ASX:PPS) A$0.695 A$338.79M ★★★★★★ Ora Banda Mining (ASX:OBM) A$1.345 A$2.59B ★★★★★★ EDU Holdings (ASX:EDU) A$0.76 A$94.35M ★★★★★★ Integrated Research (ASX:IRI) A$0.30 A$54.18M ★★★★★★ MaxiPARTS (ASX:MXI) A$1.575 A$87.52M ★★★★★★ CTI Logistics (ASX:CLX) A$1.94 A$156.94M ★★★★☆☆ GWA Group (ASX:GWA) A$2.05 A$530.9M ★★★★★☆

Click here to see the full list of 381 stocks from our ASX Penny Stocks screener.

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

AMA Group

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

Overview: AMA Group Limited operates a collision repair business across Australia and New Zealand with a market capitalization of A$286.48 million.

Operations: The company generates revenue through various segments, including Ama Collision (A$378.43 million), Capital Smart (A$498.13 million), ACM Parts (A$99.53 million), Specialist Businesses (A$61.90 million), and operations in Wales (A$79.08 million).

Market Cap: A$286.48M

AMA Group Limited, with a market capitalization of A$286.48 million, operates in the collision repair sector and has announced a share buyback program to repurchase up to 9.93% of its issued share capital by May 2027. Despite being unprofitable, AMA has improved its financial position by reducing net debt from 77.2% to 28.8% over five years and maintaining a satisfactory net debt-to-equity ratio of 8.5%. The company is trading at a significant discount compared to its estimated fair value and peers, while having sufficient cash runway for over three years if current cash flow trends continue.

Click here to discover the nuances of AMA Group with our detailed analytical financial health report. Gain insights into AMA Group's future direction by reviewing our growth report.ASX:AMA Financial Position Analysis as at May 2026

Emmerson Resources

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

Overview: Emmerson Resources Limited, along with its subsidiaries, focuses on the exploration and evaluation of mineral properties and has a market capitalization of A$269.53 million.

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Operations: The company's revenue is primarily derived from its mineral exploration segment, which generated A$0.18 million.

Market Cap: A$269.53M

Emmerson Resources Limited, with a market capitalization of A$269.53 million, is currently pre-revenue with minimal income from its mineral exploration activities. The company has been unprofitable, experiencing increasing losses over the past five years. However, it remains debt-free and possesses sufficient short-term assets to cover liabilities. Recent developments include a proposed acquisition by Pan African Resources PLC for approximately A$290 million via an Australian Court-approved scheme of arrangement, with the Emmerson Board recommending this scheme in the absence of superior proposals. This transaction is anticipated to be finalized by mid-July 2026.

Get an in-depth perspective on Emmerson Resources' performance by reading our balance sheet health report here. Gain insights into Emmerson Resources' past trends and performance with our report on the company's historical track record.ASX:ERM Financial Position Analysis as at May 2026

Racura Oncology

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

Overview: Racura Oncology Ltd is a Phase 3 clinical biopharmaceutical company focused on cancer care, with a market cap of A$514.52 million.

Operations: The company generates revenue of A$3.48 million from its operations in Australia.

Market Cap: A$514.52M

Racura Oncology Ltd, with a market cap of A$514.52 million, operates as a Phase 3 clinical biopharmaceutical company focused on cancer care. Despite being unprofitable and having minimal revenue of A$3.48 million, Racura maintains sufficient cash runway for over a year and has no debt obligations. The company's recent discovery of the mechanism of action for its lead oncology asset, (E,E)-bisantrene, highlights its potential in targeting the c-MYC oncogene—a critical factor in many cancers—through G4 DNA stabilization. This advancement supports ongoing clinical programs aimed at addressing unmet needs in oncology treatments.

Navigate through the intricacies of Racura Oncology with our comprehensive balance sheet health report here. Evaluate Racura Oncology's prospects by accessing our earnings growth report.ASX:RAC Debt to Equity History and Analysis as at May 2026

Make It Happen

Unlock our comprehensive list of 381 ASX Penny Stocks by clicking here. Ready To Venture Into Other Investment Styles? AI is about to change healthcare. These 121 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

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.

Companies discussed in this article include ASX:AMA ASX:ERM and ASX:RAC.

This article was originally published by Simply Wall St.

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