Are you searching for the top ASX penny stocks making waves today? Discover the best stocks to buy now in the world of ASX small-cap stocks, with a focus on promising ASX penny stocks under $1. With the market constantly evolving, it’s crucial to identify the best penny stocks that show great potential. As investors continue to keep an eye on trends, some of these ASX stocks are emerging as great opportunities for those looking to invest in stocks at a lower price point. Whether you’re interested in high-growth opportunities or simply seeking to diversify, the best Australian shares under $1 could be your next big move. And with market movements similar to popular stocks like the Tesla share price, now might be the perfect time to explore ASX stocks on the rise!

1. Cash Converters International (ASX: CCV)

Cash Converters International Ltd. engages in the ownership, operation, and franchising of retail stores. It operates through the following segments: It operates through the following segments: Personal Finance, Vehicle Financing, Store Operations, New Zealand, UK, and Head Office & Eliminations. The Personal Finance segment comprises the Cash Converters Personal Finance personal loans business. The Vehicle Financing refers to Green Light Auto Group Pty Ltd, which provides motor vehicle finance. The Store Operations offers retail sale of new and second-hand goods, and personal lending including cash advance and pawnbroking operations at corporate owned stores in Australia. The New Zealand segment comprises the operations of the New Zealand Cash Converters network. The UK segment is associated with the sale of franchises for the retail sale of new and second-hand goods within the United Kingdom. The Head Office & Eliminations segment pertains to the sale of franchises for the retail sale of new and second-hand goods within Australia and the sale of master licenses for the development of franchises in countries around the world. The company was founded by Brian Cumins in November 1984 and is headquartered in Perth, Australia.

From the company reports:

Cash Converters International (ASX: CCV) has released its first-quarter FY25 trading update, showcasing steady financial performance and operational resilience.

The company’s Gross Loan Book remained consistent at $274 million, reflecting robust customer demand. Quarterly revenue rose by 1% year-on-year to $95.8 million, driven by strong trading results in the UK and sustained momentum in the Australian business.

A key highlight was the improvement in the Quarterly Net Loss Rate, which decreased to 3.7% from 4.8% in the prior comparable period (pcp). This reduction aligns with the company’s target range and underscores its focus on sustainable, customer-centered financial solutions.

Growth Catalyst:

CCV has solidified its position as a key player in the Australian personal finance market, particularly in the small and medium loan segment, which represents a $4 billion target market. The company’s strategic focus on younger audiences, a demographic underpenetrated by traditional banks, offers significant growth potential. By addressing the financial needs of consumers under 45 years old, CCV taps into a dynamic and expanding customer base. CCV’s growth strategy encompasses both organic and inorganic initiatives. The company continues to strategically expand its loan book while maintaining an emphasis on cost optimization, ensuring sustained profitability. Its commitment to geographic and inorganic expansion is evident in recent milestones. For instance, the acquisition of 42 stores in the UK in July 2023 has already contributed significantly to earnings in FY24. Similarly, in Australia, CCV acquired three stores and has a robust pipeline of 39 additional stores, establishing a strong foundation for future revenue growth. The company’s greenfield development projects further support its expansion, demonstrating its capability to penetrate new markets effectively. These combined efforts underscore CCV’s potential to strengthen its market presence and drive long-term financial performance.

2. Hancock & Gore Limited (ASX: HNG)

Hancock & Gore Ltd. is an investment company. The firm invests in diversified asset categories, including listed and unlisted equities and private equity investments. The company was founded on October 29, 1904 and is headquartered in Sydney, Australia.

Historical Financial Analysis:

The company experienced a remarkable operational transformation in 2021 following its recapitalization in 2020. Prior to this change, the company boasted a robust revenue stream, generating nearly $40 million from various segments, including Building Products, Healthcare, and Health & Beauty. However, despite this substantial revenue, the company faced challenges in achieving healthy profit margins. Since 2021, although revenues have decreased and are now solely derived from its investment portfolio, the company has managed to report impressive profits, amounting to $8.17 million in 2023 compared to only $1.1 million in 2019, despite revenues of only $5.58 million. The recapitalization also positively impacted the company’s balance sheet, allowing for a significant increase in assets from $35 million in 2020 to $70 million in 2023. Concurrently, liabilities, which stood at nearly $20 million in 2020, have diminished to less than $1 million, thereby substantially improving the book value for shareholders.

Growth Catalyst:

The recent acquisition of Schoolblazer by the company, following its increased investment in Mountcastle to achieve full ownership, represents a strategically advantageous decision. This acquisition is anticipated to enable the company to capture a substantially larger portion of the market, as Schoolblazer is strategically aligned with core competencies that Mountcastle currently lacks, and vice versa. The synergy between these complementary business models is expected to lead to a significant increase in market share for Mountcastle, especially considering that Schoolblazer expands Mountcastle’s footprint from the Value and Mid consumer market segments through its established presence in the Premium market segment.