Discover 3 Undiscovered Gems in Canada with Promising Potential

The Canadian market has shown robust performance, rising 2.1% over the last week and up 14% over the past year, with earnings forecasted to grow by 15% annually. In this thriving environment, identifying stocks with promising potential involves looking beyond the well-known names to uncover hidden gems that align with these positive trends.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Alvopetro Energy	NA	52.76%	59.10%	★★★★★★
TWC Enterprises	7.71%	8.87%	30.01%	★★★★★★
Taiga Building Products	NA	7.62%	15.46%	★★★★★★
Frontera Energy	28.78%	-0.59%	34.36%	★★★★★☆
Reconnaissance Energy Africa	NA	34.75%	-7.79%	★★★★★☆
Mako Mining	28.08%	39.01%	48.79%	★★★★★☆
Queen's Road Capital Investment	7.20%	22.14%	22.20%	★★★★☆☆
Genesis Land Development	53.32%	25.58%	47.05%	★★★★☆☆
Senvest Capital	54.38%	2.12%	-0.88%	★★★★☆☆
Fairfax India Holdings	17.90%	2.65%	1.15%	★★★★☆☆

Click here to see the full list of 48 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Aris Mining (TSX:ARIS)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Aris Mining Corporation, with a market cap of CA$1.04 billion, engages in the acquisition, exploration, development, and operation of gold properties in Canada, Colombia, and Guyana.

Operations: Aris Mining Corporation generates revenue primarily from its Segovia Operations ($409.96 million) and Marmato Project ($48.43 million).

Aris Mining has become profitable this year, with high-quality earnings and a satisfactory net debt to equity ratio of 35.5%. The company reported gold production of 99,983 ounces for H1 2024, down from 104,906 ounces in the same period last year. Aris is expanding its Segovia processing plant to boost capacity by 50%, aiming for an annual output of 300,000 ounces. Trading at nearly half its estimated fair value, Aris's future looks promising as it integrates new assets and scales operations.

• Navigate through the intricacies of Aris Mining with our comprehensive health report here.

• Gain insights into Aris Mining's historical performance by reviewing our past performance report.

Hammond Power Solutions (TSX:HPS.A)

Simply Wall St Value Rating: ★★★★★★

Overview: Hammond Power Solutions Inc., together with its subsidiaries, engages in the design, manufacture, and sale of various transformers in Canada, the United States, Mexico, and India with a market cap of CA$1.42 billion.

Operations: HPS generates revenue primarily from the manufacture and sale of transformers, amounting to CA$754.37 million. The company's market cap stands at CA$1.42 billion.

Earnings for Hammond Power Solutions have surged 41% annually over the past five years, with a recent Q2 net income of CAD 23.59 million compared to CAD 13.33 million last year. The company repurchased shares in the latest year and trades at nearly half its estimated fair value. With a debt-to-equity ratio dropping from 27.7% to 5% in five years, HPS.A's EBIT covers interest payments by a substantial margin of 87.6x, highlighting its robust financial health and growth potential in the electrical industry.

• Click to explore a detailed breakdown of our findings in Hammond Power Solutions' health report.

• Examine Hammond Power Solutions' past performance report to understand how it has performed in the past.

SilverCrest Metals (TSX:SIL)

Simply Wall St Value Rating: ★★★★★★

Overview: SilverCrest Metals Inc. focuses on acquiring, exploring, and developing precious metal properties in Mexico with a market cap of CA$2.01 billion.

Operations: SilverCrest Metals generates CA$250.79 million in revenue primarily from its Las Chispas project. The company's market cap stands at CA$2.01 billion.

SilverCrest Metals, a small cap player in the mining sector, has shown robust performance with earnings growing by 83.6% over the past year, significantly outpacing the industry average of -1.2%. The company remains debt-free and boasts a favorable price-to-earnings ratio of 11.8x compared to the Canadian market's 14.2x. Recent production results indicate gold recovered at 15,303 oz and silver at 1.46 million oz for Q2 2024, reflecting steady operational efficiency despite slight variances from last year’s figures.

• Get an in-depth perspective on SilverCrest Metals' performance by reading our health report here.

• Explore historical data to track SilverCrest Metals' performance over time in our Past section.

Summing It All Up

• Click this link to deep-dive into the 48 companies within our TSX Undiscovered Gems With Strong Fundamentals screener.
• Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks.
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Contemplating Other Strategies?

• 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.

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