Undiscovered Gems With Strong Fundamentals To Watch This August 2024

As global markets react to a cooling U.S. labor market and unexpected economic data, small-cap stocks have faced significant volatility, with the Russell 2000 Index pulling back sharply. Despite these challenges, this environment can offer opportunities to identify undiscovered gems with strong fundamentals that may be poised for growth. In times of market uncertainty, companies with solid financial health and robust business models often stand out as promising investments. Here are three such stocks worth watching this August 2024.

Top 10 Undiscovered Gems With Strong Fundamentals

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Impellam Group	31.12%	-5.43%	-6.86%	★★★★★★
Ovostar Union	0.01%	10.19%	49.85%	★★★★★★
Société Multinationale de Bitumes Société Anonyme	54.45%	21.26%	20.08%	★★★★★★
Tianyun International Holdings	10.09%	-5.59%	-9.92%	★★★★★★
Societe de Limonaderies et de Boissons Rafraichissantes d'Afrique	39.37%	8.04%	-3.72%	★★★★★☆
Standard Chartered Bank Kenya	6.93%	8.35%	16.18%	★★★★☆☆
Central Cooperative Bank AD	4.88%	4.12%	8.95%	★★★★☆☆
Wilson	64.79%	30.09%	68.29%	★★★★☆☆
A2B Australia	15.83%	-7.78%	25.44%	★★★★☆☆
Capricorn Group	63.66%	7.59%	9.16%	★★★★☆☆

Click here to see the full list of 4761 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

BRAC Bank (DSE:BRACBANK)

Simply Wall St Value Rating: ★★★★☆☆

Overview: BRAC Bank PLC. offers a range of commercial banking products and services in Bangladesh with a market cap of BDT75.57 billion.

Operations: BRAC Bank PLC. generates revenue primarily from its SME segment (BDT20.25 billion), followed by Corporate (BDT10.27 billion), Treasury (BDT5.97 billion), and Retail (BDT0.63 billion).

BRAC Bank's recent performance highlights its potential as an undiscovered gem. With earnings growth of 40.4% over the past year, it outpaced the Banks industry average of 27.4%. The bank's net income for Q2 2024 was BDT2,488.82 million, up from BDT1,660.58 million a year ago, and basic earnings per share increased to BDT1.41 from BDT0.94 in the same period last year. Total assets stand at BDT940.6 billion with total equity of BDT91.9 billion and deposits amounting to BDT669.5 billion against loans of BDT560 billion; however, a high level of bad loans (3.1%) remains a concern despite primarily low-risk funding sources (79%).

• Delve into the full analysis health report here for a deeper understanding of BRAC Bank.

• Gain insights into BRAC Bank's historical performance by reviewing our past performance report.

LafargeHolcim Bangladesh (DSE:LHBL)

Simply Wall St Value Rating: ★★★★★★

Overview: LafargeHolcim Bangladesh Limited, along with its subsidiaries, manufactures and markets building materials in Bangladesh and internationally, with a market cap of BDT74.56 billion.

Operations: LHBL generates revenue primarily from two segments: Aggregates (BDT4.51 billion) and Clinker and Cement (BDT23.04 billion).

LafargeHolcim Bangladesh's recent performance highlights a mixed bag. Sales for Q2 2024 were BDT 6.16 billion, down from BDT 6.71 billion last year, with net income dropping to BDT 803.83 million from BDT 1.71 billion. The company's debt to equity ratio improved significantly over five years, reducing from 22% to just 1.7%. Despite negative earnings growth of -19%, LHBL's interest payments are well covered by EBIT at a robust 49x coverage ratio.

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

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

Kiler Holding Anonim Sirketi (IBSE:KLRHO)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Kiler Holding Anonim Sirketi operates in the construction, energy, health, tourism, service, industrial, and textile sectors with a market cap of TRY55.02 billion.

Operations: Kiler Holding Anonim Sirketi generates revenue primarily from its construction segment, which accounts for TRY5.33 billion. The company has a market cap of TRY55.02 billion.

Kiler Holding Anonim Sirketi has shown significant growth, with earnings increasing by 142% over the last year, outpacing the Industrials industry. The company's net income for the first quarter of 2024 was TRY 374.08 million, a substantial improvement from a net loss of TRY 54.07 million in the same period last year. With a price-to-earnings ratio of 11.8x compared to the TR market's 16.4x, Kiler also reported sales of TRY 2,746.41 million for Q1 2024 against TRY 493.05 million previously.

• Navigate through the intricacies of Kiler Holding Anonim Sirketi with our comprehensive health report here.

• Evaluate Kiler Holding Anonim Sirketi's historical performance by accessing our past performance report.

Turning Ideas Into Actions

• Gain an insight into the universe of 4761 Undiscovered Gems With Strong Fundamentals by clicking here.
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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.

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