Stock Analysis

Exploring Undiscovered Gems in the United States This December 2024

NasdaqCM:TSSI
Source: Shutterstock

In the last week, the United States market has been flat, yet over the past 12 months, it has risen by an impressive 32%, with earnings forecasted to grow by 15% annually. In such a dynamic environment, identifying stocks that are not only poised for growth but also remain underappreciated can offer unique opportunities for investors seeking to capitalize on emerging trends.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Eagle Financial Services170.75%12.30%1.92%★★★★★★
Wilson Bank HoldingNA7.87%8.22%★★★★★★
Franklin Financial Services173.21%5.55%-1.86%★★★★★★
Morris State Bancshares17.84%4.83%6.58%★★★★★★
Omega FlexNA0.39%2.57%★★★★★★
First Northern Community BancorpNA7.65%11.17%★★★★★★
TeekayNA-3.71%60.91%★★★★★★
ASA Gold and Precious MetalsNA7.11%-35.88%★★★★★☆
Pure Cycle5.31%-4.44%-5.74%★★★★★☆
FRMO0.13%19.43%29.70%★★★★☆☆

Click here to see the full list of 229 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

LINKBANCORP (NasdaqCM:LNKB)

Simply Wall St Value Rating: ★★★★★★

Overview: LINKBANCORP, Inc. is a bank holding company for The Gratz Bank, offering a range of banking products and services to individuals, families, nonprofits, and businesses in Pennsylvania with a market capitalization of $278.04 million.

Operations: The primary revenue stream for LINKBANCORP comes from its banking operations, generating $86.14 million. The company has a market capitalization of $278.04 million, reflecting its position in the financial sector within Pennsylvania.

LINKBANCORP, with assets totaling US$2.9 billion and equity of US$277.4 million, is gaining traction thanks to its impressive earnings growth of 225.3% over the past year, outpacing the banks industry average significantly. The company manages a healthy balance sheet with total deposits at US$2.4 billion and loans at US$2.2 billion, while maintaining a net interest margin of 3.1%. Despite a one-off loss impacting recent results by US$10.4 million, LINKBANCORP has a sufficient bad loan allowance at 0.8% of total loans and primarily low-risk funding sources accounting for 91% of liabilities.

NasdaqCM:LNKB Debt to Equity as at Dec 2024
NasdaqCM:LNKB Debt to Equity as at Dec 2024

TSS (NasdaqCM:TSSI)

Simply Wall St Value Rating: ★★★★★★

Overview: TSS, Inc. offers integration technology services focused on implementing, operating, and maintaining IT systems for enterprises in the United States and has a market cap of $267.23 million.

Operations: TSS generates revenue primarily from System Integration Services, contributing $114.68 million, and Facilities services, adding $7.85 million.

TSS, Inc. has made waves with its recent inclusion in the NASDAQ Composite Index, reflecting a robust performance trajectory. This company reported a significant leap in third-quarter revenue to US$70.07 million from US$8.88 million last year, alongside net income of US$2.65 million compared to just US$0.209 million previously. Despite shareholder dilution and volatile share prices recently, TSS stands out for trading 25% below its estimated fair value and maintaining high-quality earnings without debt concerns. The firm’s strategic relocation plans aim to bolster AI integration capabilities by expanding facility capacity over 60%, promising sustained growth momentum into 2025.

NasdaqCM:TSSI Earnings and Revenue Growth as at Dec 2024
NasdaqCM:TSSI Earnings and Revenue Growth as at Dec 2024

Gencor Industries (NYSEAM:GENC)

Simply Wall St Value Rating: ★★★★★★

Overview: Gencor Industries, Inc. designs, manufactures, and sells heavy machinery for highway construction materials and environmental control equipment, with a market cap of $322.47 million.

Operations: Gencor Industries generates revenue primarily from the sale of equipment for the highway construction industry, totaling $113.12 million.

Gencor Industries, a nimble player in the machinery sector, has showcased impressive growth with earnings surging 34.7% over the past year, outpacing the industry average of 11.5%. This debt-free company trades at a significant discount, approximately 90.3% below its estimated fair value, indicating potential undervaluation in US$ terms. Gencor's financial health is bolstered by its positive free cash flow and high-quality earnings profile. Recently, they transitioned their auditing services to Forvis Mazars following an acquisition involving their previous firm MSL; this strategic move likely reflects a commitment to maintaining robust financial oversight.

NYSEAM:GENC Debt to Equity as at Dec 2024
NYSEAM:GENC Debt to Equity as at Dec 2024

Summing It All Up

Ready To Venture Into Other Investment Styles?

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.

Valuation is complex, but we're here to simplify it.

Discover if TSS might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com