Uncovering 3 Hidden Gems In The United States With Solid Fundamentals

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In the last week, the market has been flat, but it is up 23% over the past year with earnings forecast to grow by 15% annually. In this environment, finding stocks with solid fundamentals can offer promising opportunities for investors seeking stability and growth.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Hamilton Beach Brands Holding

34.31%

1.65%

4.46%

★★★★★★

Morris State Bancshares

10.20%

-0.32%

6.73%

★★★★★★

Mission Bancorp

25.37%

16.23%

20.16%

★★★★★★

Teekay

NA

-6.48%

55.79%

★★★★★★

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%

★★★★★☆

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 217 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

Karooooo

Simply Wall St Value Rating: ★★★★★★

Overview: Karooooo Ltd. operates a mobility software-as-a-service (SaaS) platform for connected vehicles across South Africa, the rest of Africa, Europe, the Asia-Pacific region, the Middle East, and the United States with a market cap of $1.18 billion.

Operations: Karooooo Ltd. generates revenue primarily from its Cartrack segment (ZAR 3.74 billion) and Karooooo Logistics (ZAR 355.99 million), with a segment adjustment of ZAR 193.22 million.

Karooooo, a small-cap company in the software industry, has shown impressive financial metrics. Its earnings growth over the past year was 33.5%, outpacing the industry average of 23.2%. The debt-to-equity ratio has improved significantly from 21.7% to just 3% over five years, indicating strong financial health. Trading at a price-to-earnings ratio of 26.3x, it presents good value compared to peers averaging 38.3x in the sector.

NasdaqCM:KARO Earnings and Revenue Growth as at Sep 2024
NasdaqCM:KARO Earnings and Revenue Growth as at Sep 2024

Sezzle

Simply Wall St Value Rating: ★★★★★☆

Overview: Sezzle Inc. is a technology-enabled payments company operating mainly in the United States and Canada, with a market cap of $762.86 million.

Operations: Sezzle generates revenue primarily through lending to end-customers, amounting to $192.69 million. The company's market cap stands at $762.86 million.

Sezzle's earnings surged by 434.8% over the past year, significantly outpacing the Diversified Financial industry’s 9.7%. With a net debt to equity ratio of 21.6%, its financial leverage is satisfactory, and it has successfully reduced its debt to equity ratio from 1676.6% to 137% in five years. Despite recent insider selling and share price volatility, Sezzle remains profitable with well-covered interest payments (4.9x EBIT), positioning it for continued growth in the BNPL sector.

NasdaqCM:SEZL Debt to Equity as at Sep 2024
NasdaqCM:SEZL Debt to Equity as at Sep 2024

Photronics

Simply Wall St Value Rating: ★★★★★★

Overview: Photronics, Inc., along with its subsidiaries, manufactures and sells photomask products and services across the United States, Taiwan, China, Korea, Europe, and other international markets with a market cap of approximately $1.64 billion.

Operations: Photronics generates revenue primarily from the manufacture and sale of photomasks, amounting to $871.79 million. The company's market cap is approximately $1.64 billion.

Photronics, Inc. has shown robust performance despite industry challenges, with earnings growing 19.8% over the past year, outpacing the semiconductor sector's -7.2%. The company reported third-quarter sales of US$210.98 million and net income of US$34.39 million, up from US$26.96 million a year ago. Trading at 61% below its estimated fair value and debt-free for five years now, Photronics seems well-positioned relative to peers in terms of valuation and financial health.

NasdaqGS:PLAB Earnings and Revenue Growth as at Sep 2024
NasdaqGS:PLAB Earnings and Revenue Growth as at Sep 2024

Summing It All Up

  • Click here to access our complete index of 217 US Undiscovered Gems With Strong Fundamentals.

  • Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.

  • Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Contemplating Other Strategies?

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:KARO NasdaqCM:SEZL and NasdaqGS:PLAB.

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

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