The market has climbed by 2.1% over the past week, with every sector up. Over the past 12 months, the market is up 20%, and earnings are expected to grow by 15% per annum over the next few years. In such a robust environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding for investors looking to uncover hidden opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 218 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

Citizens Financial Services

Simply Wall St Value Rating: ★★★★★★

Overview: Citizens Financial Services, Inc., a bank holding company with a market cap of $254.44 million, offers diverse banking products and services to individual, business, governmental, and institutional customers.

Operations: Citizens Financial Services, Inc. generates $98.51 million in revenue from its community banking segment. The company has a market cap of $254.44 million.

Citizens Financial Services, with total assets of US$2.9 billion and equity of US$286.5 million, has shown impressive growth. Its earnings surged 51% over the past year, outperforming the industry’s -14.8%. The company repurchased 885 shares in early 2024 for US$0.05 million and trades at a good value compared to peers, currently at 57% below estimated fair value. With a net interest margin of 3.2%, CZFS boasts high-quality earnings and sufficient allowance for bad loans at 0.7%.

• Click here and access our complete health analysis report to understand the dynamics of Citizens Financial Services.

• Examine Citizens Financial Services' past performance report to understand how it has performed in the past.

Benchmark Electronics

Simply Wall St Value Rating: ★★★★★☆

Overview: Benchmark Electronics, Inc., along with its subsidiaries, provides product design, engineering services, technology solutions, and manufacturing services across the Americas, Asia, and Europe with a market cap of $1.73 billion.

Operations: Benchmark Electronics generates revenue from product design, engineering services, technology solutions, and manufacturing services. The company operates across the Americas, Asia, and Europe with a market cap of $1.73 billion.

Benchmark Electronics has shown steady performance, with earnings growth of 1.6% over the past year, outpacing the electronic industry's -9.9%. The company reported net income of US$15.53 million for Q2 2024, up from US$13.99 million a year ago, and increased its quarterly dividend to $0.17 per share. Its debt-to-equity ratio rose from 14% to 26.4% over five years but remains manageable with interest payments covered by EBIT at 5.3x coverage.

• Dive into the specifics of Benchmark Electronics here with our thorough health report.

• Evaluate Benchmark Electronics' historical performance by accessing our past performance report.

Worthington Steel

Simply Wall St Value Rating: ★★★★★☆

Overview: Worthington Steel, Inc. operates as a steel processor in North America with a market cap of approximately $1.97 billion.

Operations: Worthington Steel generates revenue primarily from its Metal Processors and Fabrication segment, which reported $3.43 billion in sales. The company has a market cap of approximately $1.97 billion.

Worthington Steel's earnings grew by 77.7% over the past year, significantly outpacing the Metals and Mining industry. Trading at 33.5% below its estimated fair value, it represents a potential bargain for investors. The company reported full-year sales of US$3.43 billion and net income of US$154.7 million, with diluted EPS from continuing operations rising to US$3.11 from US$1.77 last year. Its net debt to equity ratio stands at a satisfactory 9.6%, with interest payments well covered by EBIT (35.9x).

• Get an in-depth perspective on Worthington Steel's performance by reading our health report here.

• Understand Worthington Steel's track record by examining our Past report.

Where To Now?

• Explore the 218 names from our US Undiscovered Gems With Strong Fundamentals screener here.

• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.

• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

• Find companies with promising cash flow potential yet trading below their fair value.

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 NasdaqCM:CZFS NYSE:BHE and NYSE:WS.

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