Top 5 ASX penny stocks to watch in 2025

What are penny stocks?

In Australia, many classify penny stocks as those under one Australian dollar per share, while some use the definition loosely to describe any company with smaller share prices.

Penny stock share trading requires a high degree of due diligence, as they represent smaller propositions that usually come with a far higher risk-to-reward ratio. Ensure you have adequate risk management in place before you consider trading penny stocks.

It’s also worth noting that penny stocks can have high market caps if a large number of shares have been issued.

What to know about ASX penny stocks: the good and the bad

ASX penny stocks are often thinly traded. This means that, unlike the blue-chip shares of the ASX 200, where every stock usually has a wall of potential buyers, there might not always be enough buyer demand when share traders want to sell.

In addition, penny stocks are often loss-making, using any money available to invest in growth. This makes them highly speculative investments. Moreover, they usually receive little to no analyst coverage, making informed trading decisions difficult.

They can also even lack in-depth trading records. And some penny stocks are notorious for diluting stock value by issuing additional shares.

These risk factors mean that for most share traders, penny stocks should only form a small percentage of their portfolio. And for those closer to retirement who are investing over short timeframes, they arguably should be avoided altogether.

Of course, despite these significant risks, ASX penny stocks hold a unique advantage. The right pick can be massively more lucrative than an investment in more established peers.

However, it’s important to be aware of the echo chamber of success. Skyrocketing penny stocks are extremely likely to hit mainstream news, but the success stories are significantly outnumbered by the failures. Moreover, once an ASX penny stock hits the headlines, it's often too late to partake in its success.

But many of the largest blue-chip stocks on the ASX began trading as penny stocks. For example, one of the largest stocks on the ASX, BHP, used to be a penny stock back in 1999. Afterpay was a penny stock as recently as 2017. International market titans Apple and Amazon also once qualified as penny stocks for share traders with the foresight and luck to invest early.

Top 5 ASX penny stocks to watch in 2025

We selected these penny stocks based on three main factors:

• Share price: As of the time of writing this article, all the shares on our list have a stock price of under A$1
• Diversification: We cover a range of industries, including retail, technology, commercial services and non-energy minerals
• Six-month share price: Either the share price has grown significantly over the past six months, or it’s seen its fair share of volatility, opening up opportunities for share traders to take advantage of

Overview of the penny stocks in this article

All the penny stocks on our list are available to trade via CFDs and share trading with us.

All figures are accurate as of 21 November 2025.

1. Pureprofile Limited (ASX: PPL)

Industry: Commercial services

Market cap: A$57.32 million¹

Share price: A$0.047

Pureprofile is a data and insights company that helps brands and marketers understand consumer behaviour through technology such as audience intelligence, survey panels and proprietary data-profiling tools.

Its revenue is modest, but it operates in a scalable SaaS and data-insights model, which can grow without the same overheads as traditional businesses.

It has strong growth potential because its platform is scalable, and any increase in customers or contracts can lead to revenue growth without significantly increasing costs. Its lean operation helps keep overheads down, and because the share price is very low, there is potential for significant percentage gains if the company executes its plans well.

However, as a micro-cap, Pureprofile has liquidity risk, which means it can be difficult to buy or sell large amounts of stock without affecting the price. The company also faces execution risk, as scaling a SaaS business requires effective customer adoption, and it competes against larger technology and data analytics firms.

Highlights:

• Its low absolute share price makes it appealing for speculative share traders, while its scalable business model offers potential upside
• Its small market capitalisation also makes it prone to volatility, which may attract CFD traders
• The share price has seen a decent 11.90% increase over the past six months²

2. 29Metals Limited (ASX: 29M)

Industry: Non-energy minerals

Market cap: A$548.93 million³

Share price: A$0.370

29Metals is a base and precious metals company focused on copper, zinc and other metals. It operates mines such as Golden Grove in Western Australia and Capricorn Copper in Queensland, and is developing additional projects like Gossan Valley.

It stands to benefit from commodity price increases, particularly for copper and zinc, as higher metal prices can directly boost earnings. Its development projects also offer upside if they successfully reach production.

Having said that, 29Metals is exposed to commodity risk, meaning that falling metal prices could reduce profits. Mining projects can face execution risks such as delays, cost overruns or operational problems, and as a smaller miner, the company may need additional capital in the future, which could dilute shareholders.

Highlights:

• It offers potential for large percentage gains, particularly if commodity prices rise or development milestones are achieved
• Its Gossan Valley project is on track to produce its first ore by the end of 2026⁴
• The share price has soared by 100% over the last two quarters⁵

3. Dusk Group Limited (ASX: DSK)

Industry: Retail trade

Market cap: A$51.06 million⁶

Share price: A$0.820

Dusk Group is a retail company selling home fragrance products such as candles, oils, diffusers and related décor. The company operates both physical stores and online channels, and its products benefit from recurring consumer demand. It operates in a niche market, with products that encourage repeat purchases, giving it relatively stable revenue compared to other discretionary retail segments.

On the downside, spending on non-essential items, like home fragrances, can decline during economic slowdowns, which may hurt sales. The retail sector is also highly competitive, and Dusk may face challenges from larger retailers or global brands. Low trading volume can also make the shares more volatile.

Dusk trades at a low price, making it accessible to share traders seeking a small consumer play, while its low market cap and discretionary nature create CFD trading opportunities through seasonal or sales-related fluctuations.

Highlights:

• Its 2025 annual report indicates A$137.8 million in total sales, with A$10.8 million of those coming from the online space⁷
• Its gross profit percentage over the same period was 63.7%⁸
• Over the past six months, the share price has fallen 4.09%, but it has seen plenty of volatility, creating opportunities for CFD traders⁹

4. Emmerson Resources Limited (ASX: ERM)

Industry: Non-energy minerals

Market cap: A$191.70 million¹⁰

Share price: A$0.275

Emmerson Resources is a junior explorer focused on gold, copper and other minerals in Australia. It has exploration assets in areas such as Tennant Creek. The company is still pre-production, meaning it doesn’t generate steady cash flow yet.

Emmerson offers high upside potential because successful exploration can significantly increase the company’s value. Its land position in mineral-rich regions gives it a chance to discover high-value deposits, and the company has been able to raise funds to support exploration.

However, as a pre-production explorer, there’s no guaranteed cash flow, and geological risks are high; not all drilling results are positive. The company may need to issue more shares to fund exploration, diluting current share traders.

Its stock is highly sensitive to commodity prices, market sentiment and funding conditions.

Highlights:

• Emmerson is a classic high-risk, high-reward penny stock, making it appealing for CFD traders seeking large percentage swings
• Its share price has skyrocketed by 120% over the past six months¹¹

5. Reckon Limited (ASX: RKN)

Industry: Technology services

Market cap: A$65.70 million¹²

Share price: A$0.580

Reckon is a software company providing cloud and desktop accounting, payroll and legal-practice software to small- and medium-sized businesses, accountants and law firms. Its business includes both recurring cloud revenue and traditional software clients.

Reckon benefits from recurring subscription revenue, which provides a predictable income stream. Recent acquisitions have expanded its client base, and its low valuation may present value opportunities for long-term share traders.

However, the company operates in a competitive SaaS environment with rivals such as Xero and MYOB. Legacy clients using older desktop software may be slow to migrate to the cloud, and as a micro-cap, Reckon is sensitive to churn, business risk and market volatility.

Its micro-cap size and competitive environment can lead to price swings, making it attractive for both speculative share traders and CFD traders.

Highlights:

• It generated A$33 million in revenue for the year, as indicated in its 2025 annual report¹³
• It saw growth of 26% in revenue for its Reckon One product¹⁴
• The share price has jumped 17.17% over the past six months¹⁵

How to trade penny stocks with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX penny stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Share trading

1. Open a share trading account with IG AU
2. Search for ASX penny stocks
3. Choose the shares you want to buy
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about penny stocks 

Footnotes

1. TradingView, November 2025
2. TradingView, November 2025
3. TradingView, November 2025
4. 19Metals, September 2025
5. TradingView, November 2025
6. TradingView, November 2025
7. Dusk Group, 2025
8. Dusk Group, 2025
9. TradingView, November 2025
10. TradingView, November 2025
11. TradingView, November 2025
12. TradingView, November 2025
13. Reckon, 2025
14. Reckon, 2025
15. TradingView, November 2025