Stock Analysis

Undiscovered Gems Three Promising Stocks To Explore This December 2024

PSE:SEVN
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As global markets navigate a period of monetary policy shifts, with the ECB and SNB cutting rates and anticipation building for a potential Fed rate cut, small-cap stocks have experienced underperformance compared to their larger counterparts. In this environment, discerning investors may find opportunities in lesser-known stocks that demonstrate resilience and potential for growth despite broader market volatility.

Top 10 Undiscovered Gems With Strong Fundamentals

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Bahrain National Holding Company B.S.CNA20.11%5.44%★★★★★★
Wilson Bank HoldingNA7.87%8.22%★★★★★★
Ovostar Union0.01%10.19%49.85%★★★★★★
Industrias del Cobre Sociedad AnónimaNA19.08%22.33%★★★★★★
Standard Bank0.13%27.78%30.36%★★★★★★
African Rainbow Capital InvestmentsNA37.52%38.29%★★★★★★
Tianyun International Holdings10.09%-5.59%-9.92%★★★★★★
Hermes Transportes Blindados50.88%4.57%3.33%★★★★★☆
BSP Financial Group7.53%7.31%4.10%★★★★★☆
A2B Australia15.83%-7.78%25.44%★★★★☆☆

Click here to see the full list of 4492 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Philippine Seven (PSE:SEVN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Philippine Seven Corporation operates convenience stores in the Philippines with a market capitalization of ₱102.87 billion.

Operations: Philippine Seven Corporation generates revenue primarily from its store operations, totaling ₱88.61 billion.

Philippine Seven, a notable player in the retail sector, has demonstrated strong financial health over recent years. The company has impressively reduced its debt to equity ratio from 12.4% to 1% in five years and maintains a robust interest coverage of 6.3x by EBIT. Last year’s earnings growth of 26.1% outpaced the industry average of 8.8%, showcasing its competitive edge. Recent quarterly results highlight revenue reaching ₱22 billion from ₱19.54 billion previously, with net income climbing to ₱813 million from ₱719 million last year, indicating solid operational performance amidst challenging market conditions.

PSE:SEVN Debt to Equity as at Dec 2024
PSE:SEVN Debt to Equity as at Dec 2024

Jiangsu Jinling Sports EquipmentLtd (SZSE:300651)

Simply Wall St Value Rating: ★★★★★☆

Overview: Jiangsu Jinling Sports Equipment Co., Ltd. specializes in the production and sale of sporting goods, with a market capitalization of CN¥2.03 billion.

Operations: Jinling Sports Equipment generates revenue primarily from the sale of sporting goods, amounting to CN¥450.20 million.

Jiangsu Jinling Sports Equipment, a small player in the sports gear market, reported CNY 256.46 million in sales for the first nine months of 2024, down from CNY 320.14 million last year. Net income also decreased to CNY 21.78 million from CNY 37.53 million previously, with basic earnings per share dropping to CNY 0.1692 from CNY 0.2915 a year ago. Despite this dip in performance and an increased debt-to-equity ratio over five years (16.7% to 29.8%), the company remains profitable with high-quality earnings and more cash than total debt, suggesting solid financial footing amidst industry challenges.

SZSE:300651 Debt to Equity as at Dec 2024
SZSE:300651 Debt to Equity as at Dec 2024

Zilltek Technology (TPEX:6679)

Simply Wall St Value Rating: ★★★★★★

Overview: Zilltek Technology Corp. is an IC design company with operations in Taiwan, China, and internationally, and it has a market capitalization of NT$17.56 billion.

Operations: The primary revenue stream for Zilltek Technology comes from electronic components and parts, generating NT$2.13 billion.

Zilltek Technology, a nimble player in the tech space, recently showcased its financial agility with earnings results for Q3 2024. Sales reached TWD 517.91 million, slightly up from TWD 511.79 million the previous year. However, net income dipped to TWD 81.12 million from last year's TWD 159.21 million, reflecting some challenges in profitability despite higher revenues over nine months at TWD 1,598.1 million compared to TWD 1,306.54 million previously. Earnings per share also saw a reduction to TWD 1.51 from last year's TWD 2.97 for the quarter but improved overall for nine months at TWD 6.79 against prior figures of TWD 5.81.

TPEX:6679 Earnings and Revenue Growth as at Dec 2024
TPEX:6679 Earnings and Revenue Growth as at Dec 2024

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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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