Exploring 3 Undiscovered Gems With Strong Potential

In this article:

In the current global market landscape, heightened geopolitical tensions and robust job growth in the U.S. have created a mixed environment for investors, with large-cap stocks showing resilience amid oil price fluctuations and supply chain concerns. Despite these challenges, small-cap indices like the S&P MidCap 400 and Russell 2000 have experienced recent declines, highlighting potential opportunities for discerning investors to explore lesser-known stocks that may offer strong potential in this volatile climate. Identifying promising stocks often involves looking beyond immediate market sentiment to uncover companies with solid fundamentals and strategic positioning that can thrive even amidst economic uncertainties.

Top 10 Undiscovered Gems With Strong Fundamentals

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Petrol d.d

42.18%

17.56%

-0.49%

★★★★★★

Al Sagr Cooperative Insurance

NA

9.35%

37.73%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

MAPFRE Middlesea

NA

14.56%

1.77%

★★★★★☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Central Cooperative Bank AD

4.88%

37.94%

537.05%

★★★★☆☆

Practic

NA

3.63%

6.85%

★★★★☆☆

Click here to see the full list of 4756 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Almacenes Éxito

Simply Wall St Value Rating: ★★★★☆☆

Overview: Almacenes Éxito S.A. is a retail commerce company operating in South America with a market capitalization of COP3.11 trillion.

Operations: Éxito generates revenue primarily from its segments in Éxito (COP10.23 billion), Carulla (COP2.51 billion), and operations in Uruguay (COP3.99 billion) and Argentina (COP897.99 million). The low-cost segment contributes COP2.34 billion to the overall revenue stream, with a minor segment adjustment of COP217 million factored into the total figures.

Éxito, a notable player in the retail sector, has seen its earnings grow by 171.9% over the past year, outpacing the industry average of 6%. Despite this growth, it reported a net loss of COP 18.73 million for Q2 2024, with revenues slightly dipping to COP 5.07 billion from COP 5.12 billion last year. The company has reduced its debt to equity ratio from 66.8% to a satisfactory level of 29.2% over five years and trades at an attractive value at nearly 76.7% below estimated fair value but faces challenges with interest coverage at only 2.2x EBIT against debt payments.

BVC:EXITO Earnings and Revenue Growth as at Oct 2024
BVC:EXITO Earnings and Revenue Growth as at Oct 2024

Oba Makarnacilik Sanayi ve Ticaret

Simply Wall St Value Rating: ★★★★☆☆

Overview: Oba Makarnacilik Sanayi ve Ticaret A.S. is engaged in the production and sale of pasta both in Turkey and internationally, with a market capitalization of TRY17.50 billion.

Operations: Oba Makarnacilik generates revenue primarily from its food processing segment, amounting to TRY20.95 billion. The company has a market capitalization of TRY17.50 billion.

Oba Makarnacilik, a promising player in the food industry, has recently turned profitable, distinguishing itself from the broader sector's negative growth of -22.8%. The company's price-to-earnings ratio stands at 8.7x, undercutting the TR market average of 14.6x. Despite having more cash than total debt and positive free cash flow, its EBIT covers only 0.9 times its interest payments—an area needing attention. Recent inclusion in the S&P Global BMI Index highlights potential visibility improvements for investors.

IBSE:OBAMS Debt to Equity as at Oct 2024
IBSE:OBAMS Debt to Equity as at Oct 2024

Asia United Bank

Simply Wall St Value Rating: ★★★★★☆

Overview: Asia United Bank Corporation, with a market cap of ₱40.77 billion, offers a range of banking and financial products and services to individual consumers, MSMEs, and corporations in the Philippines through its subsidiaries.

Operations: The bank generates revenue primarily from Branch Banking, contributing ₱9.31 billion, followed by Commercial Banking at ₱3.78 billion. Treasury operations and Consumer Banking add ₱2.60 billion and ₱2.38 billion, respectively, to its revenue streams.

AUB, a dynamic player in the banking sector, boasts total assets of ₱349B and equity of ₱51.6B. With deposits reaching ₱281.1B and loans at ₱188.5B, it maintains a net interest margin of 4.8%. The bank's earnings surged by 24.9% last year, outpacing industry growth of 13.7%, while its recent quarterly net income hit ₱2,893M from the previous year's ₱2,111M—reflecting strong financial health bolstered by low-risk funding sources.

PSE:AUB Earnings and Revenue Growth as at Oct 2024
PSE:AUB Earnings and Revenue Growth as at Oct 2024

Turning Ideas Into Actions

  • Gain an insight into the universe of 4756 Undiscovered Gems With Strong Fundamentals by clicking here.

  • Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.

  • Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Interested In Other Possibilities?

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 BVC:EXITO IBSE:OBAMS and PSE:AUB.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Advertisement