8 Cheap Penny Stocks to Buy Right Now

4. Mizuho Financial Group Inc. (NYSE:MFG)

Share Price: $4.20

Forward P/E: 8.44

EPS Growth This Year: 251.40%

Number of Hedge Fund Holders: 12

Mizuho Financial Group (NYSE:MFG) is a bank holding company based in Japan. It primarily engages in the business of bank holding companies, banks, securities specialist companies, and other companies.

Mizuho Financial (NYSE:MFG) reported an 18% increase in profit in Q1 2024, with net earnings rising to 289 billion yen ($1.9 billion) compared to 245 billion yen in the same quarter in 2023. It also reported significant earnings growth and improvement in return on equity (ROE). Mizuho Financial’s (NYSE:MFG) EPS surged 18% year-over-year, surpassing analyst expectations. A key driver of this growth was the increase in banking income due to favorable market conditions and the end of negative interest rates in Japan. With the Bank of Japan lifting rates out of negative territory for the first time since 2016, Mizuho Financial (NYSE:MFG) is well-positioned to benefit from the expanding profit margins.

In addition, its strategic capital reallocation, continued earnings growth, and improving ROE are other factors that lend it a competitive edge in the market. The increase in Japan’s interest rates is further positively affecting the bank by boosting investor sentiment towards it. In fact, its stock surged 5% on the same day the central bank raised short-term rates.

The bank has maintained its forecast of record full-year profits of 750 billion yen for FY 2025, reflecting confidence and trust in its future performance. When coupled with its solid fundamentals, this strong forecast makes the bank an attractive investment, especially for investors seeking exposure to Japan’s evolving financial landscape. Mizuho Financial (NYSE:MFG) ranks in the fourth spot on our list of the 8 cheap penny stocks to buy right now.