Undervalued Opportunities Penny Stocks To Watch In January 2026

Simply Wall St

Thu, January 1, 2026 at 1:05 PM EST 4 min read

As 2025 closes, the U.S. stock market reflects a year of robust gains despite ending with a streak of losses, driven largely by advancements in technology stocks. In this context, penny stocks—often representing smaller or newer companies—remain an intriguing area for investors seeking affordability combined with potential growth. While the term “penny stocks” might seem outdated, their relevance persists as they can offer unique opportunities when backed by strong financial health.

Click here to see the full list of 344 stocks from our US Penny Stocks screener.

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

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

Overview: Universal Electronics Inc. specializes in the design, development, manufacturing, and support of home entertainment control products and smart home solutions, with a market cap of $42.64 million.

Operations: The company’s revenue is derived from its Audio/Video Products segment, amounting to $391 million.

Market Cap: $42.64M

Universal Electronics Inc. is navigating the penny stock landscape with a focus on smart home solutions, despite ongoing unprofitability and increased losses over the past five years. The company has a stable cash runway exceeding three years, supported by positive free cash flow. Recent executive changes include appointing Wade M. Jenke as CFO to strengthen financial strategies amid declining sales and net losses reported for Q3 2025. Universal’s innovative product offerings like QuickSet homeSense aim to enhance user experience and energy efficiency, potentially positioning it well in its industry segment despite current financial challenges.

• Click here and access our complete financial health analysis report to understand the dynamics of Universal Electronics.

• Assess Universal Electronics’ future earnings estimates with our detailed growth reports.

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

Overview: Perfect Corp. is an artificial intelligence software as a service company that offers AI and AR-powered solutions for the beauty, fashion, and skincare industries globally, with a market cap of $179.25 million.