“Penny stock territory” may be chock full of “fallen angels,” former high-fliers, along with shares in companies with minimal growth prospects, but among the thousands of publicly-traded stocks, there are quite a few up-and-coming penny stocks as well.

Although investors in recent years have been burned by low-priced ($5 per share or less) speculative growth plays that failed to live up to expectations, there are names in this category that have reported both revenue and earnings growth in recent years.

That’s not all. Analyst forecasts call for these companies to remain in growth mode.

To top things off, while some of these stocks sport rich valuations, plenty of up-and-comers trade at reasonable valuations relative to their current and future growth prospects.

So, what are some of the best up-and-coming penny stocks to buy right now? Take a look at these seven. Very attractive in terms of valuation and growth potential, each one is a strong opportunity at today’s prices.

Broadwind (BWEN)

Based in Cicero, Illinois, Broadwind (NASDAQ:BWEN) is a manufacturer of heavy industrial equipment, including equipment for the clean energy space.

Rising demand for renewable energy infrastructure like wind turbines have resulted in vigorous growth for the company.

This has resulted in strong returns for investors holding BWEN stock. Shares are up by around 156% year-to-date.

However, even if you’re only becoming aware of Broadwind now, it’s not as if you’ve missed the boat here. This under-the-radar “green wave” play continues to be one of the top penny stocks to buy.

Why? According to sell-side forecasts, BWEN’s earnings could nearly triple next year. Expected to report earnings of 25 cents per share this year, 2024 estimates call for earnings of 73 cents per share, or perhaps even higher.

Such further earnings growth could propel Broadwind shares to levels far above “penny stock territory.”

Elite Pharmaceuticals (ELTP)

Elite Pharmaceuticals (OTCMKTS:ELTP) is a penny stock I’ve talked about previously, for its boatloads of potential.

Back in June, I argued that shares in the over-the-counter listed generic pharma firm appeared to be on the verge of turning a corner.

Those already owning ELTP stock can say that it has truly turned a corner, with shares more-than-doubling in price since mid-August. So, what’s going on here? Chalk it up to two things. First, the reporting of strong fiscal results for the quarter ending June 30, 2023.

During this period, ELTP’s earnings rose 267% year-over-year (or YoY). Second, the announcement of promising trial data related to a generic CNS stimulant that the company aims to bring to market.

Still reasonably priced at 23 times earnings after its latest spike higher/emergence as one of the up-and-coming penny stocks, consider Elite Pharmaceuticals worthy of a closer look.

Flexible Solutions International (FSI)

Flexible Solutions International (NYSEAMERICAN:FSI) is another low-priced name that recently I have argued is one of the best penny stocks to buy.

I’m bullish on shares in this water evaporation control products company due to the fact it is a growth stock at a deep value price.

FSI stock trades for only 7.6 times earnings. This is despite reporting steady revenue and earnings growth over the past five years.

Yes, as one can quickly decipher from a reading of FSI’s latest financials, it’s not fully surprising shares trade at a low multiple.

Macroeconomic headwinds are currently weighing on results. Last quarter, revenue declined 7% YoY, with earnings per share dropping by more than 46%.

However, if economic conditions normalize in the coming year, the company could get back into growth mode. After rising 23.6% over the past twelve months, further gains may lie ahead.

Mama’s Creations (MAMA)

Mama’s Creations (NASDAQ:MAMA), formerly MamaMancini’s, has been one of the up-and-coming penny stocks for quite some time.

Since 2018, shares in this prepared refrigerated foods company have made a fivefold move higher.

Year-to-date alone, MAMA stock is up by more than 117%. A high level of growth coupled with increased investor awareness has resulted in strong gains. Still,  it’s not as if this rising star in the food space is about to start delivering lackluster growth/share price performance.

With earnings expected to rise by around 167% this fiscal year (ending January 2024), forecasts call for earnings growth to carry on for MAMA in the next fiscal year (ending January 2025). EPS in FY2025 is expected to grow by another 37.5%. Future gains may end up being more modest than those in the past, yet growth like this could drive another year of strong returns for shares.

OppFi (OPFI)

Take a look at a chart of OppFi’s (NYSE:OPFI) performance since its stock market debut, and you may question at first why I consider it one of the future penny stock winners. Yet while this fintech firm collapsed in price since going public via a special purpose acquisition company (or SPAC) merger in 2021, keep a few things in mind.

OPFI stock has kicked off a recovery thus far in the past month, rising by around 26.5%. Despite worries about the viability of its loan installment business during the current economic slowdown, the company has remained profitable, just recently raised its full-year guidance for 2023, and is expected to see a rebound in earnings next year.

These strong results, coupled with a low valuation (only 6.6 times earnings), suggest that OPFI’s recent re-rating isn’t over, and shares could keep bouncing back to loftier price levels.

Optex Systems (OPXS)

Optex Systems (NASDAQ:OPXS) has been one of the up-and-coming penny stocks over the past year, rising in price by nearly 48%.

Many factors have played a role in sending shares in this manufacturer of optical sighting systems for military applications to higher prices.

For one, the uplisting of OPXS stock from the OTC market, to the Nasdaq exchange. Along with this, the company has been experiencing double-digit levels of revenue and earnings growth.

As seen in recent press releases, Optex keeps winning seven-figure military contracts. This may signal similar levels of growth will continue.

Yet even with these solid prospects, and the stock’s big run-up in prices, OPXS still trades more like a value stock than a growth stock. Optex Systems trades for just 15.2 times trailing twelve month (or TTM) earnings. A bona fide “growth at a more-than-reasonable price” play, consider OPXS a buy.

Profire Energy (PFIE)

High fossil fuel prices have been a boon for companies in all areas of the oil and gas sector, and Profire Energy (NASDAQ:PFIE) is no exception. The oil and gas rebound has meant greater demand for oilfield products/services. This has led to strong results for Profire.

Revenue increased by 50% last quarter, and earnings spiked tenfold. With these results, it’s no surprise that PFIE stock has nearly doubled in price over the past month.

Yet while such a big move over a short time may suggest a pullback is coming, these latest positive surprises may underscore a strong chance of further positive surprises in the coming quarters.

Positive surprises could keep coming PFIE. This could enable the stock to stay on its current trajectory. Even if you choose not to buy today, ProFire should be at the top of your list of penny stocks to watch.

On the date of publication, Thomas Niel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.