Undiscovered Gems in United Kingdom for August 2024

The market has been flat in the last week but is up 12% over the past year, with earnings expected to grow by 14% per annum over the next few years. In this promising environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding for investors looking to capitalize on emerging opportunities.

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.

Let's uncover some gems from our specialized screener.

Yellow Cake (AIM:YCA)

Simply Wall St Value Rating: ★★★★★★

Overview: Yellow Cake plc operates in the uranium sector and has a market cap of £1.18 billion.

Operations: The company generates revenue primarily from holding U3O8 for long-term capital appreciation, amounting to $735.02 million.

Yellow Cake, a uranium-focused entity, has turned profitable this year with net income of US$727.01 million, a substantial shift from the previous year's net loss of US$102.94 million. The company reported revenue of US$735.02 million for the full year ended March 31, 2024. With no debt for the past five years and a low price-to-earnings ratio of 2.1x compared to the UK market's 16.9x, Yellow Cake presents an intriguing investment opportunity despite forecasts suggesting earnings might decline by an average of 103% annually over the next three years.

• Navigate through the intricacies of Yellow Cake with our comprehensive health report here.

• Gain insights into Yellow Cake's past trends and performance with our Past report.

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: The company's revenue streams are primarily derived from transportation (£900.30 million) and natural resources (£406.60 million).

Costain Group, a UK-based construction and engineering company, has seen its earnings grow by 39.3% over the past year, outpacing the industry's 10.3%. The company is debt-free now compared to five years ago when its debt to equity ratio was 50.3%. Trading at nearly half of its estimated fair value, Costain appears undervalued relative to peers. Recent highlights include a £65 million contract with Southern Water and an interim dividend of £0.004 per share for H1 2024.

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

• Understand Costain Group's track record by examining our Past report.

Ocean Wilsons Holdings (LSE:OCN)

Simply Wall St Value Rating: ★★★★★★

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

Operations: Ocean Wilsons Holdings generates revenue primarily from its maritime services in Brazil, amounting to $519.35 million. The company's net profit margin stands at 12%.

Ocean Wilsons Holdings, a UK-based infrastructure company, has shown significant financial strength and growth. With a price-to-earnings ratio of 11.1x, it is attractively valued compared to the broader UK market at 16.9x. Recent earnings growth of 32.7% surpasses the industry average of 20.5%. The firm’s debt-to-equity ratio improved from 42.7% to 38% over the past five years, and it boasts a one-off gain of US$28.8M impacting its latest results as of June 2024.

• Get an in-depth perspective on Ocean Wilsons Holdings' performance by reading our health report here.

• Review our historical performance report to gain insights into Ocean Wilsons Holdings''s past performance.

Seize The Opportunity

• Gain an insight into the universe of 80 UK Undiscovered Gems With Strong Fundamentals by clicking here.
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Looking For Alternative Opportunities?

• 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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