Still, for long-term investors, market choppiness can provide a great dip buying opportunity. When conditions improve, earnings at many penny stocks can surge, launching their share prices higher.

Here are three sub-£1 shares I think demand a serious look today.

Michelmersh Brick

It’s not a shock to see Michelmersh Brick (LSE:MBH) shares tumbling. The prospect of rising interest rates is severe as surging oil prices drive inflation. In this climate, demand for new houses could topple.

Yet I think Michelmersh’s 14% share price drop over the past month merits attention. The company now trades on a rock-bottom price-to-earnings (P/E) ratio of 8.4 times.

Make no mistake, the long-term outlook for newbuild demand remains as robust as ever. Industry consultancy Marrons believes 5.4m more homes will be needed in England alone by 2040 to keep up with the booming population. In this climate, brick demand could rocket. Michelmersh is well placed to capitalise on this upswing — it manufactures 125m bricks a year.

Panthera Resources

Gold miner Panthera Resources (LSE:PAT) has dropped 13% in value over the last month. It’s tracked precious metals prices lower as the US dollar has strengthened. A rising buck makes it less cost-effective to buy and hold USD-denominated assets.

I’m confident that gold prices will rebound, however, as the geopolitical landscape becomes more volatile. Adding in fears over global growth, rising inflation, and the long-term direction of the dollar, I’m expecting bullion to rebound strongly as it did earlier in 2026.

Investors have plenty of junior gold miners to choose from. I like Panthera because of the quality of its African mining projects. In January, the company said its Kalaka project in Mali has an exploration target of 3m to 5m ounces of gold. That was up from its earlier estimates of roughly 3m ounces.

Brave Bison

Brave Bison (LSE:BBSN) shares have plunged 8% over the last month. They’ve dropped not only due to broader risk aversion as the Middle East crisis rolls on. Like other tech stocks, the company’s slumped over fears artificial intelligence (AI) will hammer its growth prospects.

This penny share makes and distributes online video content. It’s easy, then, to see how it could be impacted if AI takes off as some predict. Time will tell how far AI disrupts Brave Bison’s operations, though the company sees it as an opportunity and is embracing AI tools itself to drive growth. So far trading remains strong, and revenues here leapt 57% in 2025.

Today the firm trades on a P/E-to-growth (PEG) ratio of 0.2. That’s below the value benchmark of one, and makes the company — like those other penny shares — worth serious consideration.

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Owning penny shares comes with greater risk than, say, holding FTSE 100 and FTSE 250 stocks. But the huge returns on offer make them worth consideration from confident investors. Take the examples of Panthera Resources (LSE:PAT), Logistics Development Group, and Brave Bison Group.

These UK stocks have delivered an average annual return of 19% since November 2020. And I believe they could continue delivering spectacular profits for shareholders. Here’s why.

Gold star

Panthera Resources — which searches for and develops gold projects in India and West Africa — has been swept higher in 2025 by strong exploration results. At 23.2p per share, it’s delivered an average yearly return of 23% over five years.

Investing in early-stage miners like this can be especially risky. Costs can balloon, putting stress on what can be already-stretched balance sheets. They can also be subject to regulatory issues in various countries.

In fact, Panthera has this year launched a $1.58bn case against the Indian government for stalling development of its Bhukia gold project.

But as we’ve seen, the rewards can also be gigantic if drilling work reveals enormous potential payloads. Studies at Panthera’s Kalaka mine in Mali have revealed a 3m ounce exploration target in a very promising gold region.

This gold stock is a high-risk bet. But given its excellent operational progress and the robust long-term outlook for gold prices, I think it’s worth a close look.

Moving higher

Logistics Development Group has delivered an average annual return of 11.5% since November 2020. During that time it’s changed its name from Eddie Stobart, but has retained its focus on the logistics market.

The assets it invests in range from warehousing and transportation to e-commerce. Its largest holding today is Finsbury Food, though other notable investments include Alliance Pharma — which distributes drugs and medical products — delivery company APC, and digital commerce specialist SQLI.

LDG has exposure to both cyclical and non-cyclical sectors. It’s a mix that leaves it somewhat vulnerable to economic downturns.

Yet at current prices I think it’s a top value stock to consider. At 14p, it trades at a whopping discount to its net asset value (NAV) per share of 26.7p (as of June).

32.4% return

Brave Bison creates, distributes and monetises online video content. It’s delivered a stunning 32.4% average annual return over the last five years, and has been active on the acquisition front to keep outperforming.

The company has made a whopping five acquisitions in the year to date. This includes the potentially transformative purchase of MiniMBA, which provides marketing training and services to blue-chip companies like McDonalds and Google.

Following these acquisitions, Brave Bison’s revenues rose 19% between January and June. This prompted it to lift earnings forecasts for next year. I’m confident these moves to expand and improve its services will pay off handsomely long term.

The penny stock’s profits could well disappoint should the broader advertising industry turn lower. But on balance, I’m confident it can keep providing excellent returns over time. It trades at 23.6p per share.

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