Three Undiscovered Gems in the United States with Strong Potential

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The market has climbed 1.2% in the last 7 days and is up 30% over the last 12 months, with earnings expected to grow by 15% per annum over the next few years. In this thriving environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding for investors.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Morris State Bancshares

10.20%

-0.28%

6.97%

★★★★★★

Teekay

NA

-6.48%

55.79%

★★★★★★

Mission Bancorp

25.37%

16.23%

20.16%

★★★★★★

Omega Flex

NA

1.31%

3.88%

★★★★★★

First Northern Community Bancorp

NA

7.12%

10.04%

★★★★★★

Banco Latinoamericano de Comercio Exterior S. A

311.64%

21.07%

24.77%

★★★★★☆

San Juan Basin Royalty Trust

NA

33.61%

35.00%

★★★★★☆

Valhi

38.71%

2.57%

-19.76%

★★★★★☆

QDM International

36.42%

107.08%

78.76%

★★★★★☆

FRMO

0.17%

12.99%

23.62%

★★★★☆☆

Click here to see the full list of 209 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

SBC Medical Group Holdings

Simply Wall St Value Rating: ★★★★★☆

Overview: SBC Medical Group Holdings Incorporated operates within the healthcare sector, offering a range of medical services and has a market capitalization of $560.55 million.

Operations: SBC Medical Group Holdings generates revenue primarily from its healthcare facilities and services, amounting to $205.44 million. The company has a market capitalization of $560.55 million.

SBC Medical Group Holdings, a small yet promising player in the healthcare sector, has seen its earnings grow by 260.3% over the past year, significantly outpacing the industry's 8% growth. Trading at 94.8% below estimated fair value, it offers considerable upside potential. With more cash than total debt and interest payments well covered by EBIT (58102x), financial stability is evident despite high share price volatility recently. Additionally, being added to the NASDAQ Composite Index highlights growing recognition in the market.

NasdaqGM:SBC Debt to Equity as at Sep 2024
NasdaqGM:SBC Debt to Equity as at Sep 2024

Bel Fuse

Simply Wall St Value Rating: ★★★★★★

Overview: Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits with a market cap of $1.05 billion.

Operations: Bel Fuse generates revenue primarily from three segments: Magnetic Solutions ($82.92 million), Connectivity Solutions ($214.44 million), and Power Solutions and Protection ($262.63 million). The company has a market cap of $1.05 billion.

Bel Fuse has seen its debt-to-equity ratio improve significantly from 62.7% to 16.8% over the past five years, indicating better financial health. The company repurchased 235,500 shares for US$14.18 million this year, showing confidence in its stock value. Despite a net income drop to US$18.81 million in Q2 2024 from US$27.78 million a year ago, Bel Fuse trades at a compelling value—20.6% below fair estimate—making it an intriguing option for investors seeking undervalued opportunities in the electronics sector.

NasdaqGS:BELF.A Earnings and Revenue Growth as at Sep 2024
NasdaqGS:BELF.A Earnings and Revenue Growth as at Sep 2024

Worthington Steel

Simply Wall St Value Rating: ★★★★★☆

Overview: Worthington Steel, Inc. operates as a steel processor in North America with a market cap of $1.82 billion.

Operations: The company generates revenue of $3.43 billion from its Metal Processors and Fabrication segment.

Worthington Steel, known for its high-quality earnings, has shown impressive growth with earnings increasing by 77.6% over the past year and trading at 38.9% below fair value estimates. The company’s EBIT covers interest payments 35.9 times, indicating strong financial health. With a net debt to equity ratio of 9.6%, it remains satisfactorily leveraged. Despite a dip in Q4 net income to US$53 million from US$67 million last year, full-year results were robust with net income reaching US$154 million compared to US$87 million previously.

NYSE:WS Earnings and Revenue Growth as at Sep 2024
NYSE:WS Earnings and Revenue Growth as at Sep 2024

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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 NasdaqGM:SBC NasdaqGS:BELF.A and NYSE:WS.

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