Undiscovered Gems In The US Featuring 3 Promising Small Caps

Over the last 7 days, the United States market has remained flat, yet it boasts a 22% increase over the past year with earnings forecasted to grow by 15% annually. In this context of steady growth and potential, discovering promising small-cap stocks can offer unique opportunities for investors seeking to capitalize on emerging companies poised for future success.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Eagle Financial Services	125.65%	12.07%	2.64%	★★★★★★
Morris State Bancshares	10.20%	-0.28%	6.97%	★★★★★★
Wilson Bank Holding	NA	7.87%	8.22%	★★★★★★
Omega Flex	NA	0.39%	2.57%	★★★★★★
Cashmere Valley Bank	15.51%	5.80%	3.51%	★★★★★★
ASA Gold and Precious Metals	NA	7.47%	-26.86%	★★★★★★
Parker Drilling	46.05%	0.86%	52.25%	★★★★★★
FRMO	0.08%	38.78%	45.85%	★★★★★☆
Pure Cycle	5.15%	-2.61%	-6.23%	★★★★★☆
Reitar Logtech Holdings	31.39%	231.46%	41.38%	★★★★☆☆

Click here to see the full list of 279 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Pure Cycle (NasdaqCM:PCYO)

Simply Wall St Value Rating: ★★★★★☆

Overview: Pure Cycle Corporation offers wholesale water and wastewater services in the United States with a market capitalization of $282.90 million.

Operations: Revenue streams for Pure Cycle Corporation include land development ($17.28 million), single-family rental ($0.50 million), and water and wastewater resource development ($11.34 million).

Pure Cycle, a smaller player in the water utilities sector, has showcased impressive financial strides recently. Its earnings surged by 104% over the past year, outpacing the industry's 14% growth. The company reported net income of US$3.94 million for Q1 2025, up from US$2.07 million a year prior, with basic earnings per share rising to US$0.16 from US$0.09. Additionally, Pure Cycle's debt-to-equity ratio increased to 5%, reflecting some leverage over five years but remains manageable given its cash position exceeding total debt levels and robust interest coverage capabilities.

• Dive into the specifics of Pure Cycle here with our thorough health report.

• Understand Pure Cycle's track record by examining our Past report.

CrossFirst Bankshares (NasdaqGS:CFB)

Simply Wall St Value Rating: ★★★★★★

Overview: CrossFirst Bankshares, Inc. is a bank holding company for CrossFirst Bank, offering a range of banking and financial services to businesses, professionals, and personal networks, with a market cap of $800.97 million.

Operations: CrossFirst Bankshares generates revenue primarily from its banking segment, which reported $250.66 million. Its financial performance is impacted by various operational costs and interest expenses, influencing the net profit margin.

With total assets of US$7.7 billion and equity at US$773.8 million, CrossFirst Bankshares stands out with its robust financial health. The bank's deposits are US$6.7 billion against loans of US$6.2 billion, reflecting a solid balance sheet structure supported by a net interest margin of 3.3%. It maintains an appropriate level of bad loans at 0.5% and has a sufficient allowance for these, standing at 231%. This entity is trading significantly below its estimated fair value by 63.8%, indicating potential undervaluation relative to peers in the industry context where earnings grew impressively by 17.6% last year, surpassing the industry's -2.4%.

• Click here to discover the nuances of CrossFirst Bankshares with our detailed analytical health report.

• Review our historical performance report to gain insights into CrossFirst Bankshares''s past performance.

Flotek Industries (NYSE:FTK)

Simply Wall St Value Rating: ★★★★★☆

Overview: Flotek Industries, Inc. is a technology-driven green chemistry and data company serving industrial and commercial markets globally, with a market cap of $273.31 million.

Operations: Flotek Industries generates revenue primarily from its Chemistry Technologies segment, contributing $170.64 million, and a smaller portion from Data Analytics at $7.82 million. The company's market cap stands at approximately $273.31 million.

Flotek Industries, a nimble player in the chemicals sector, has shown impressive growth with earnings surging 128.1% over the past year, outpacing industry averages. The company's strategic push into data analytics and chemistry technologies is likely to drive future revenue streams, evidenced by a 40% sequential rise in Data-as-a-Service revenue. Financially sound with more cash than debt and an EBIT covering interest payments 8.1 times over, Flotek's operational efficiency is improving despite increased debt-to-equity from 0% to 1.4%. While geopolitical risks loom, analysts anticipate a robust annual revenue growth of 14.1%, setting a price target of US$8.67 per share.

• Flotek Industries' strategic international expansion and innovative technologies drive potential growth. Click here to explore the narrative on Flotek Industries.

Make It Happen

• Discover the full array of 279 US Undiscovered Gems With Strong Fundamentals right here.
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Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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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