Undiscovered Gems With Promising Potential To Explore This December 2024

As global markets navigate the complexities of rate cuts and political uncertainties, small-cap stocks have faced particular challenges, with indices like the S&P 600 reflecting broad-based declines. In this environment, identifying undiscovered gems requires a keen eye for companies that demonstrate resilience and adaptability in the face of economic shifts.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Resource Alam Indonesia	2.66%	30.36%	43.87%	★★★★★★
Caisse Régionale de Crédit Agricole Mutuel Brie Picardie Société coopérative	34.89%	3.23%	3.61%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Yulie Sekuritas Indonesia	NA	18.62%	9.58%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
Moury Construct	2.93%	10.28%	30.93%	★★★★★☆
National General Insurance (P.J.S.C.)	NA	11.69%	30.36%	★★★★★☆
Arab Insurance Group (B.S.C.)	NA	-59.20%	20.33%	★★★★★☆
Compañía Electro Metalúrgica	71.27%	12.50%	19.90%	★★★★☆☆
A2B Australia	15.83%	-7.78%	25.44%	★★★★☆☆

Click here to see the full list of 4632 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

Baida GroupLtd (SHSE:600865)

Simply Wall St Value Rating: ★★★★★★

Overview: Baida Group Co., Ltd focuses on operating department stores in China and has a market capitalization of approximately CN¥4.17 billion.

Operations: Baida Group Ltd generates revenue primarily from its commodity retail business, which recorded CN¥207.42 million. The company's net profit margin is a key financial metric to consider when evaluating its profitability.

Baida Group Ltd., a small cap player, has shown impressive earnings growth of 69.3% over the past year, outpacing the Multiline Retail industry which saw a 6.7% decline. Despite a significant one-off gain of CN¥33 million impacting its recent financials, the company remains debt-free and boasts a price-to-earnings ratio of 33.6x, slightly below the Chinese market average of 35.3x. Over nine months ending September 2024, Baida reported net income at CN¥131.53 million up from CN¥20.81 million in the previous year, with basic earnings per share rising to CN¥0.35 from CNY0.06.

• Click here and access our complete health analysis report to understand the dynamics of Baida GroupLtd.

• Learn about Baida GroupLtd's historical performance.

Zhejiang Changsheng Sliding Bearings (SZSE:300718)

Simply Wall St Value Rating: ★★★★★☆

Overview: Zhejiang Changsheng Sliding Bearings Co., Ltd. specializes in the production of sliding bearings and has a market cap of CN¥9.22 billion.

Operations: Zhejiang Changsheng Sliding Bearings Co., Ltd. generates revenue primarily through the production of sliding bearings. The company has a market capitalization of CN¥9.22 billion, reflecting its scale in the industry.

Zhejiang Changsheng Sliding Bearings, a nimble player in the machinery sector, has shown robust earnings growth of 55% over the past year, outpacing the industry average. Their debt to equity ratio rose from 0% to 6.6% in five years, yet they hold more cash than total debt. Earnings for the nine months ended September 2024 were CNY 169 million on sales of CNY 835 million. Despite high-quality earnings and interest coverage being non-issues, recent private placement cancellation and volatile share price suggest potential challenges ahead. A planned share buyback program aims to enhance employee incentives and ownership plans.

• Delve into the full analysis health report here for a deeper understanding of Zhejiang Changsheng Sliding Bearings.

• Gain insights into Zhejiang Changsheng Sliding Bearings' historical performance by reviewing our past performance report.

El Al Israel Airlines (TASE:ELAL)

Simply Wall St Value Rating: ★★★★☆☆

Overview: El Al Israel Airlines Ltd., along with its subsidiaries, offers passenger and cargo transportation services, with a market capitalization of ₪3.39 billion.

Operations: El Al Israel Airlines generates revenue primarily from passenger aircraft services, which contributed $2.83 billion, and cargo aircraft services, adding $70.31 million. The company also reported other income amounting to $53.30 million.

El Al Israel Airlines, a notable player in the aviation sector, has shown impressive financial performance. Over the past year, its earnings surged by 229%, significantly outpacing the industry's growth of 37%. The company's debt to equity ratio improved from 586% to 478% over five years, indicating better financial management. Recent earnings reports highlight a net income jump to US$185 million for Q3 2024 from US$52 million a year ago. Trading at nearly full potential below estimated fair value and with well-covered interest payments (4.1x EBIT), El Al showcases strong fundamentals despite share price volatility.

• Click here to discover the nuances of El Al Israel Airlines with our detailed analytical health report.

• Gain insights into El Al Israel Airlines' past trends and performance with our Past report.

Where To Now?

• Investigate our full lineup of 4632 Undiscovered Gems With Strong Fundamentals right here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
• Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Ready To Venture Into Other Investment Styles?

• 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.

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