10 Best Debt-Free Penny Stocks to Buy Now

8. RLX Technology Inc. (NYSE:RLX)

Market Cap as of September 13: $2.62 Billion

Enterprise Value: $1.46 Billion

Hedge Funds Holding Stakes as of Q2 2024: 14

RLX Technology Inc. (NYSE:RLX) is a consumer defensive investment play that engages in the manufacture and distribution of e-vapor products. Its exposure to the Chinese consumer market affirms its growth metrics owing to the market size.

The company has expanded its footprint in China thanks to the launch of the large Daqian collection, which includes 6-ml and 10-ml capsules priced lower than its top-of-the-line Infinity capsules. The new collection has allowed the company to target budget-savvy shoppers.

RLX Technology Inc. (NYSE:RLX) also expanded its international footprint with the release of the RELX Pod Pro. It’s been targeting more Southeast Asian customers with high-quality products as it continues diversifying its offerings.

Consequently, the company was on a roll in the second quarter, delivering a 66% increase in revenues that totaled $86.3 million. It marked the sixth consecutive quarter of revenue growth, affirming underlying growth; its earnings were up by 100% to $0.02 a share, beating consensus estimates and underlining why it is one of the best debt-free penny stocks to buy now.

RLX Technology Inc. (NYSE:RLX)’s latest earnings report underlines the firm’s ability to withstand and adjust in a changing market environment. By concentrating on expansion globally, diversifying its product range, and fostering innovation, RLX Technology is setting the stage to tackle the hurdles and possibilities presented by the shifting e-vapor market.

While the stock is trading at a premium with a price-to-earnings multiple of 23, the company is expected to achieve record revenue and earnings growth numbers. Additionally, it rewards income-focused investors with a 2.40% dividend yield thanks to its low debt level of about $5.69 million as of June 2024.

In the second quarter, 14 hedge funds held stakes in RLX Technology Inc. (NYSE:RLX) valued at $60.8 million. As of June 30, Wildcat Capital Management was the most prominent stakeholder, holding 18.05 million shares worth $33.20 million.