The market is up 1.0% over the last week and has climbed 28% in the past year, 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 seeking undiscovered gems.
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% | ★★★★★☆ |
| Innovex International | 19.92% | 29.88% | 40.68% | ★★★★★☆ |
| San Juan Basin Royalty Trust | NA | 33.61% | 35.00% | ★★★★★☆ |
| Valhi | 38.71% | 2.57% | -19.76% | ★★★★★☆ |
| 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.
Here we highlight a subset of our preferred stocks from the screener.
Cricut
Simply Wall St Value Rating: ★★★★★★
Overview: Cricut, Inc. designs, markets, and distributes a creativity platform for crafting professional-looking handmade goods and has a market cap of $1.37 billion.
Operations: Cricut generates revenue through the sale of its creativity platform and associated products. The company's cost structure includes expenses related to design, marketing, and distribution.
Cricut, a small cap company in the Consumer Durables industry, has shown notable performance despite some challenges. Trading at 44.5% below its estimated fair value, it reported net income of US$19.77 million for Q2 2024, up from US$16.02 million a year ago. The company repurchased 1.41 million shares worth US$8.86 million between May and June 2024 and boasts no debt compared to five years ago when its debt-to-equity ratio was 49.9%.
- Click to explore a detailed breakdown of our findings in Cricut's health report.
Evaluate Cricut's historical performance by accessing our past performance report.
Hovnanian Enterprises
Simply Wall St Value Rating: ★★★★☆☆
Overview: Hovnanian Enterprises, Inc., with a market cap of $1.34 billion, designs, constructs, markets, and sells residential homes in the United States through its subsidiaries.
Operations: Hovnanian Enterprises generates revenue primarily from its homebuilding segments, with the West region contributing $1.37 billion, the Northeast $989.39 million, and the Southeast $474.97 million. The financial services segment adds another $70.40 million to its revenue stream.
Hovnanian Enterprises has shown impressive earnings growth of 51.3% over the past year, outperforming the Consumer Durables industry. The company's net debt to equity ratio stands at a high 145.9%, indicating significant leverage, though its interest payments are well covered by EBIT at 7.6x coverage. Recent earnings guidance for 2024 projects revenue between US$2.90 billion and US$3.05 billion, with fully diluted EPS expected between US$29 and US$31, reflecting strong future prospects despite insider selling in recent months.
- Delve into the full analysis health report here for a deeper understanding of Hovnanian Enterprises.
Explore historical data to track Hovnanian Enterprises' performance over time in our Past section.
Worthington Steel
Simply Wall St Value Rating: ★★★★★☆
Overview: Worthington Steel, Inc. operates as a steel processor in North America with a market cap of approximately $1.70 billion.
Operations: The company generates revenue primarily from its Metal Processors and Fabrication segment, amounting to $3.43 billion.
Worthington Steel, a notable player in the steel industry, has shown promising financial metrics. Trading at 41.6% below its estimated fair value, it offers potential for value investors. The company's net debt to equity ratio stands at a satisfactory 9.6%, with interest payments well-covered by EBIT (35.9x coverage). Earnings grew by an impressive 77.6% over the past year, outpacing the Metals and Mining industry’s -23%. For fiscal year ending May 31, 2024, Worthington reported sales of US$3.43 billion and net income of US$154.7 million compared to US$87.1 million last year.
- Navigate through the intricacies of Worthington Steel with our comprehensive health report here.
Understand Worthington Steel's track record by examining our Past report.
Make It Happen
- Get an in-depth perspective on all 209 US Undiscovered Gems With Strong Fundamentals by using our screener 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.
- Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.
Searching for a Fresh Perspective?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- 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:CRCT NYSE:HOV and NYSE:WS.
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