European Penny Stocks To Watch In February 2026

European markets have experienced volatility recently, with the pan-European STOXX Europe 600 Index reaching a new high but ending the week nearly flat. As investors navigate these fluctuations, penny stocks continue to capture attention for their potential to offer value and growth that larger firms may overlook. Despite being considered an outdated term, penny stocks represent smaller or newer companies that can provide significant opportunities when backed by strong financials.

Click here to see the full list of 279 stocks from our European Penny Stocks screener.

Here we highlight a subset of our preferred stocks from the screener.

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

Overview: Lucisano Media Group S.p.A. operates in Italy, focusing on film production and cinema management, with a market cap of €17.83 million.

Operations: The company’s revenue segment includes €50.99 million from its operations in Italy.

Market Cap: €17.83M

Lucisano Media Group, with a market cap of €17.83 million, has shown significant earnings growth of 107.6% over the past year, outpacing the Entertainment industry. The company maintains a strong financial position with short-term assets exceeding both short and long-term liabilities and interest payments well covered by EBIT. Despite its high debt level, operating cash flow adequately covers this debt. Trading at a low price-to-earnings ratio of 3.1x relative to the Italian market, it presents good value among peers. However, future earnings are forecasted to decline by an average of 3.6% annually over the next three years.

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

Overview: Nextedia S.A. operates in France offering cybersecurity, cloud and digital workspace, and customer experience solutions, with a market cap of €16.31 million.

Operations: Nextedia generates its revenue from the direct marketing segment, amounting to €62.04 million.

Market Cap: €16.31M

Nextedia, with a market cap of €16.31 million, has demonstrated robust earnings growth of 39.7% over the past year, surpassing the IT industry’s decline. The company’s financial health is solid, with short-term assets covering both short and long-term liabilities and interest payments well covered by EBIT at 18.5 times coverage. Its debt is well managed with operating cash flow covering it adequately, and more cash than total debt enhances its stability. Despite a low return on equity of 6%, Nextedia trades significantly below its estimated fair value while maintaining high-quality earnings without shareholder dilution recently.

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

Overview: Acarix AB (publ) is a medical device company that develops AI-based solutions for the rapid rule-out of coronary artery disease, with a market cap of SEK348.83 million.

Operations: Acarix AB (publ) has not reported any specific revenue segments.

Market Cap: SEK348.83M

Acarix AB, with a market cap of SEK348.83 million, is pre-revenue and reported sales of SEK7.36 million for 2025, reflecting modest growth from the previous year. The company remains unprofitable with a net loss of SEK48.09 million but has managed to reduce its losses compared to the prior year. Acarix’s financial position shows short-term assets exceeding liabilities and no long-term debt, though it faces less than a year’s cash runway if current cash flow trends persist. Despite an experienced management team, the board lacks tenure stability which may impact strategic continuity moving forward.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BIT:LMG ENXTPA:ALNXT and OM:ACARIX.

This article was originally published by Simply Wall St.

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