Over the last 7 days, the United States market has dropped 1.9%, but over the past year, it has risen by 21%. In this context of fluctuating short-term performance and strong long-term growth potential, identifying stocks with promising potential can be crucial for investors looking to capitalize on future earnings growth forecasted at 15% annually.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 217 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.

Pathward Financial

Simply Wall St Value Rating: ★★★★★★

Overview: Pathward Financial, Inc. is a bank holding company for Pathward, National Association, offering a range of banking products and services in the United States with a market cap of $1.72 billion.

Operations: Pathward Financial's revenue streams include $401.69 million from consumer banking, $248.43 million from commercial banking, and $46.78 million from corporate services.

Pathward Financial, with total assets of US$7.5B and equity of US$765.2M, showcases a robust profile. Total deposits stand at US$6.4B, while total loans are US$4.5B. The company has a sufficient allowance for bad loans at 1% and earns a net interest margin of 6.1%. Recently, Pathward sold its commercial insurance premium finance business and repurchased 286,920 shares for US$14.99M between April and June 2024, indicating strategic capital management efforts.

• Navigate through the intricacies of Pathward Financial with our comprehensive health report here.

• Understand Pathward Financial's track record by examining our Past report.

Build-A-Bear Workshop

Simply Wall St Value Rating: ★★★★★★

Overview: Build-A-Bear Workshop, Inc. operates as a multi-channel retailer of plush animals and related products in various countries including the United States, Canada, the United Kingdom, and Ireland, with a market cap of approximately $451.12 million.

Operations: The company generates revenue primarily from net retail sales ($451.93 million), commercial sales ($27.03 million), and international franchising ($4.42 million).

Build-A-Bear Workshop has demonstrated resilience with revenue of US$111.8 million for Q2 2024, up from US$109.23 million the previous year, and net income rising to US$8.78 million from US$8.34 million. Despite negative earnings growth of -1.6% over the past year, it remains profitable and debt-free, trading at 52.8% below its estimated fair value. The company is expanding with new store locations and exclusive product launches like the 50th Anniversary Hello Kitty plush collection.

• Click to explore a detailed breakdown of our findings in Build-A-Bear Workshop's health report.

• Gain insights into Build-A-Bear Workshop's historical performance by reviewing our past performance report.

Valhi

Simply Wall St Value Rating: ★★★★★☆

Overview: Valhi, Inc. operates in the chemicals, component products, and real estate management and development sectors across Europe, North America, the Asia Pacific, and internationally with a market cap of $826.49 million.

Operations: Valhi, Inc. generates revenue primarily from its chemicals segment ($1.78 billion), followed by component products ($157.40 million) and real estate management and development ($78.50 million). The net profit margin for the company is a key financial metric to consider in evaluating its profitability across these diverse revenue streams.

Valhi has made significant strides, reducing its debt to equity ratio from 78% to 38.7% over the past five years and achieving a net debt to equity ratio of 8.6%. Its earnings growth of 215.4% in the last year outpaced the Chemicals industry, which saw a -4.8% drop. Recent financials show second-quarter revenue at US$563 million, up from US$518 million a year ago, with net income hitting US$20 million compared to a loss of US$3 million previously.

• Click here to discover the nuances of Valhi with our detailed analytical health report.

• Learn about Valhi's historical performance.

Summing It All Up

• Click this link to deep-dive into the 217 companies within our US Undiscovered Gems With Strong Fundamentals screener.

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Seeking Other Investments?

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

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• 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 NasdaqGS:CASH NYSE:BBW and NYSE:VHI.

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