Exploring Undiscovered Gems With Potential In July 2024

As of July 2024, global markets are displaying a notable shift towards small-cap and value shares, reflecting a broader rotation in market leadership. This trend is underscored by recent economic indicators that suggest an uptick in business activity and retail sales, setting a dynamic backdrop for investors exploring potential opportunities in less conspicuous segments of the market. In this context, identifying stocks with untapped potential requires an understanding of how these smaller companies might leverage current economic conditions to their advantage.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Namibia Breweries	16.64%	3.90%	55.88%	★★★★★★
Mobile Telecommunications	NA	3.85%	-0.40%	★★★★★★
Sure Global Tech	NA	15.65%	24.53%	★★★★★★
Etihad Atheeb Telecommunication	NA	22.25%	58.44%	★★★★★★
Jadranski naftovod d.d	1.65%	9.49%	6.75%	★★★★★★
M+S Hydraulic AD	NA	19.76%	26.62%	★★★★★★
Nofoth Food Products	NA	32.10%	35.92%	★★★★★★
Amana Cooperative Insurance	NA	2.55%	12.80%	★★★★★★
MAPFRE Middlesea	NA	-31.70%	1.59%	★★★★★☆
Central Cooperative Bank AD	4.88%	4.12%	8.95%	★★★★☆☆

Click here to see the full list of 4823 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

Borusan Yatirim ve Pazarlama (IBSE:BRYAT)

Simply Wall St Value Rating: ★★★★★★

Overview: Borusan Yatirim ve Pazarlama A.S. is a diversified investment company involved in sectors such as steel, automotive, logistics, automotive supply, informatics and telecommunications, and e-commerce with a market capitalization of TRY 65.08 billion.

Operations: The company generates revenue primarily through its operations which, despite initially reporting zero revenue, has shown significant growth over time. It consistently records a gross profit margin of 100%, indicating that it incurs no cost of goods sold and all revenue translates directly into gross profit. This model supports substantial net income figures, which have been increasing notably in recent periods.

Borusan Yatirim ve Pazarlama, a lesser-known yet compelling investment, has demonstrated robust financial health with no debt and a positive free cash flow. Over the past five years, earnings have surged by 66.5% annually. Despite recent fluctuations—first-quarter sales dropped to TRY 79 million from TRY 132 million year-over-year and net income fell to TRY 264 million from TRY 596 million—the company's strategic maneuvers and market position suggest potential for recovery and growth, making it an intriguing prospect for discerning investors.

• Navigate through the intricacies of Borusan Yatirim ve Pazarlama with our comprehensive health report here.

• Examine Borusan Yatirim ve Pazarlama's past performance report to understand how it has performed in the past.

Ege Endüstri ve Ticaret (IBSE:EGEEN)

Simply Wall St Value Rating: ★★★★★☆

Overview: Ege Endüstri ve Ticaret A.Ş. is a Turkish company engaged in the development, manufacturing, and international sale of axle and suspension system components for commercial and special vehicles, with a market capitalization of TRY 43.78 billion.

Operations: The company specializes in manufacturing parts and components for motor vehicles, generating revenue of ₺3.82 billion from this segment. It has demonstrated a notable increase in net income, reaching ₺779.62 million recently, reflecting an effective control over costs and operational efficiency.

Ege Endüstri ve Ticaret, a lesser-known player in the auto components industry, has showcased robust performance with a 44% earnings growth over the past year, surpassing industry averages. Despite an increase in its debt-to-equity ratio from 13.7% to 29.2% over five years, the company maintains a strong liquidity position with more cash than total debt. Recent financial reports highlight significant improvements: Q1 sales reached TRY 1,029 million and net income surged to TRY 220 million from TRY 137 million year-over-year.

• Get an in-depth perspective on Ege Endüstri ve Ticaret's performance by reading our health report here.

• Understand Ege Endüstri ve Ticaret's track record by examining our Past report.

XTB (WSE:XTB)

Simply Wall St Value Rating: ★★★★☆☆

Overview: XTB S.A. operates as a brokerage firm offering trading in ETFs, currency derivatives, commodities, indices, stocks, and bonds across regions including Central and Eastern Europe, Western Europe, Latin America, and the Middle East; it has a market capitalization of PLN 7.39 billion.

Operations: The firm primarily generates revenue through retail operations, contributing significantly to its financial performance, with a minimal impact from institutional operations. It maintains a high gross profit margin, averaging above 90% in recent years, indicative of efficient cost management relative to its revenue generation.

XTB, a lesser-known yet potent player in the Capital Markets industry, recently declared a dividend of EUR 1.18 per share, underscoring its robust profit distribution strategy. Despite experiencing a slight earnings dip of -3.1% last year, it remains well-positioned with earnings projected to grow at 5.61% annually. The firm's financial health is solidified by its favorable debt profile, holding more cash than total debt and an increased debt to equity ratio from 3.5% to 9.1% over five years, reflecting prudent financial management amidst growth endeavors.

• Take a closer look at XTB's potential here in our health report.

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

Summing It All Up

• Discover the full array of 4823 Undiscovered Gems With Strong Fundamentals right here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Want To Explore Some Alternatives?

• 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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