Uncovering 3 Hidden Small Cap Gems with Strong Fundamentals

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Over the last 7 days, the United States market has risen 1.9%, and it is up 33% over the last 12 months, with earnings expected to grow by 15% per annum over the next few years. In this thriving environment, identifying small-cap stocks with strong fundamentals can offer significant opportunities for investors looking to capitalize on robust growth potential.

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%

★★★★★★

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%

★★★★★★

First National Bank Alaska

221.06%

2.98%

1.82%

★★★★★☆

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

Let's dive into some prime choices out of from the screener.

Sezzle

Simply Wall St Value Rating: ★★★★★☆

Overview: Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada with a market cap of $918.42 million.

Operations: Sezzle generates revenue primarily through lending to end-customers, which amounted to $192.69 million. The company's market cap is $918.42 million.

Sezzle's earnings surged 434.8% over the past year, outpacing the industry growth of 10.5%. The company's net debt to equity ratio stands at a satisfactory 21.6%, and its interest payments are well covered by EBIT at 4.9x coverage. Recently, Sezzle announced a strategic partnership with WebBank to enhance its Pay-in-2 and Pay-in-4 products, alongside a multi-year jersey patch deal with the Minnesota Timberwolves, which should bolster brand visibility significantly.

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

SBC Medical Group Holdings

Simply Wall St Value Rating: ★★★★★☆

Overview: SBC Medical Group Holdings Incorporated operates in the healthcare services sector with a market capitalization of $586.38 million.

Operations: SBC Medical Group Holdings generates revenue primarily from its healthcare facilities and services, amounting to $217.54 million.

SBC Medical Group Holdings, a small-cap healthcare player, has shown impressive growth with earnings surging 164% over the past year, far outpacing the industry’s 8%. Trading at 94.1% below its estimated fair value and holding more cash than total debt, SBC's financial health appears robust. Despite high share price volatility in recent months, the company boasts high-quality earnings and positive free cash flow of US$64.23M as of June 2024.

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

Centrus Energy

Simply Wall St Value Rating: ★★★★★☆

Overview: Centrus Energy Corp. supplies nuclear fuel components and services for the nuclear power industry in the United States, Belgium, Japan, and internationally, with a market cap of $818.88 million.

Operations: Centrus Energy generates revenue primarily from two segments: Low-Enriched Uranium (LEU) at $320.80 million and Technical Solutions at $71.80 million, with a segment adjustment of -$5 million.

Centrus Energy, a niche player in the nuclear fuel sector, has seen significant growth with earnings surging by 165% over the past year. Trading at 67% below its estimated fair value, it presents an attractive valuation. The company reported Q2 revenue of US$189 million and net income of US$30.6 million, up from US$98.4 million and US$12.7 million respectively a year ago. Centrus has more cash than total debt and recently added Stephanie O'Sullivan to its board for strategic guidance.

NYSEAM:LEU Earnings and Revenue Growth as at Sep 2024
NYSEAM:LEU 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 NasdaqCM:SEZL NasdaqGM:SBC and NYSEAM:LEU.

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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