Discovering Undiscovered Gems in the United Kingdom for August 2024

The market in the United Kingdom has been flat in the last week, with the Energy sector down 3.1%, yet it is up 12% over the past year and earnings are forecast to grow by 14% annually. In this context, identifying promising stocks often involves finding companies that show resilience and potential for growth despite short-term fluctuations.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Andrews Sykes Group	NA	1.69%	3.16%	★★★★★★
Globaltrans Investment	15.40%	2.68%	16.51%	★★★★★★
Impellam Group	31.12%	-5.43%	-6.86%	★★★★★★
London Security	0.31%	9.47%	7.41%	★★★★★★
M&G Credit Income Investment Trust	NA	-0.35%	1.18%	★★★★★★
Rights and Issues Investment Trust	NA	-3.68%	-4.07%	★★★★★★
FW Thorpe	3.34%	11.37%	9.41%	★★★★★☆
Goodwin	52.21%	9.26%	13.12%	★★★★★☆
BBGI Global Infrastructure	0.02%	6.58%	9.90%	★★★★★☆
Mountview Estates	16.64%	4.50%	-0.59%	★★★★☆☆

Click here to see the full list of 80 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Yellow Cake (AIM:YCA)

Simply Wall St Value Rating: ★★★★★★

Overview: Yellow Cake plc operates in the uranium sector, focusing on holding U3O8 for long-term capital appreciation, with a market cap of £1.18 billion.

Operations: Yellow Cake plc generates revenue primarily from holding U3O8 for long-term capital appreciation, amounting to $735.02 million. The company has a market cap of £1.18 billion.

Yellow Cake has shown a remarkable turnaround, reporting revenue of US$735.02 million for the year ending March 31, 2024, compared to negative revenue of US$96.9 million the previous year. Net income surged to US$727.01 million from a net loss of US$102.94 million last year, reflecting its newfound profitability. Despite becoming profitable and having no debt over the past five years, shareholders experienced dilution in the past year while earnings per share jumped to US$3.51 from a loss per share of US$0.56 previously.

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

• Review our historical performance report to gain insights into Yellow Cake's's past performance.

Costain Group (LSE:COST)

Simply Wall St Value Rating: ★★★★★★

Overview: Costain Group PLC provides smart infrastructure solutions for the transportation, energy, water, and defense markets in the United Kingdom and has a market cap of £292.39 million.

Operations: Transportation and Natural Resources are the primary revenue streams, generating £900.30 million and £406.60 million, respectively.

Costain Group has demonstrated impressive earnings growth, up 39.3% over the past year, far outpacing the construction industry’s 10.3%. The company is debt-free, a significant improvement from its 50.3% debt-to-equity ratio five years ago. Recently reported half-year sales were £639.3 million, with net income rising to £13.5 million from £5.1 million last year and basic earnings per share increasing to £0.05 from £0.019 previously

• Get an in-depth perspective on Costain Group's performance by reading our health report here.

• Evaluate Costain Group's historical performance by accessing our past performance report.

Ocean Wilsons Holdings (LSE:OCN)

Simply Wall St Value Rating: ★★★★★★

Overview: Ocean Wilsons Holdings Limited is an investment holding company that provides maritime and logistics services in Brazil, with a market cap of £516.30 million.

Operations: The company generates revenue primarily from its maritime services in Brazil, amounting to $519.35 million.

Ocean Wilsons Holdings, a lesser-known UK stock, has shown impressive financial metrics recently. With a notable one-off gain of $28.8M impacting its last 12 months' results to June 30, 2024, the company’s earnings growth of 32.7% over the past year outpaced the infrastructure industry's 20.5%. Its debt-to-equity ratio improved from 42.7% to 38% over five years, and its price-to-earnings ratio (11x) is below the UK market average of 16.9x.

• Navigate through the intricacies of Ocean Wilsons Holdings with our comprehensive health report here.

• Gain insights into Ocean Wilsons Holdings' historical performance by reviewing our past performance report.

Where To Now?

• Click this link to deep-dive into the 80 companies within our UK Undiscovered Gems With Strong Fundamentals screener.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Interested In Other Possibilities?

• 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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