Exploring July 2024 Undiscovered Gems In US Stocks

In a week marked by significant downturns, with the S&P 500 recording its worst performance since mid-April, U.S. markets have shown a notable shift with smaller-cap stocks outperforming their larger counterparts. This trend highlights an interesting dynamic as investors navigate through the impacts of global IT disruptions and anticipate key earnings reports. In such a landscape, exploring lesser-known stocks could offer unique opportunities, especially when broader market sentiments and specific economic indicators suggest potential areas of resilience or growth in tumultuous times.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Jiayin Group	NA	23.46%	30.79%	★★★★★★
Morris State Bancshares	14.93%	0.44%	7.74%	★★★★★★
Omega Flex	NA	2.13%	4.77%	★★★★★★
Teekay	NA	-8.88%	49.65%	★★★★★★
First Northern Community Bancorp	NA	6.68%	9.08%	★★★★★★
Mission Bancorp	25.37%	16.23%	20.16%	★★★★★★
Gravity	NA	15.31%	24.42%	★★★★★★
FirstSun Capital Bancorp	27.36%	10.54%	30.73%	★★★★★★
CSP	2.17%	-5.57%	73.73%	★★★★★☆
FRMO	0.19%	6.49%	15.82%	★★★★☆☆

Click here to see the full list of 222 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

MetroCity Bankshares (NasdaqGS:MCBS)

Simply Wall St Value Rating: ★★★★★★

Overview: MetroCity Bankshares, Inc., functioning as the holding company for Metro City Bank, offers a range of banking products and services across the United States, with a market capitalization of approximately $751.34 million.

Operations: The company operates primarily in the community banking sector, generating a consistent gross profit margin of 100% over multiple reporting periods. It has demonstrated a notable increase in net income from $10.10 million at the end of 2013 to $54.34 million by mid-2024, reflecting robust operational performance and effective management of operating expenses which have scaled alongside revenue growth.

MetroCity Bankshares, recently added to multiple Russell indexes, showcases robust financial health with $3.6B in assets and a strong bad loans allowance at 102%. Despite a slight earnings dip of -2.8% last year, it remains well-positioned against an industry average decline of -15.1%. With total loans at $3.1B and deposits at $2.7B, its strategic management underpins potential growth, underscored by a net income rise to $16.94M in Q2 2024 from the previous year's $13.11M.

• Get an in-depth perspective on MetroCity Bankshares' performance by reading our health report here.

• Understand MetroCity Bankshares' track record by examining our Past report.

Northrim BanCorp (NasdaqGS:NRIM)

Simply Wall St Value Rating: ★★★★★★

Overview: Northrim BanCorp, Inc. serves as the parent company for Northrim Bank, offering commercial banking services primarily to businesses and professionals, with a market capitalization of $364.35 million.

Operations: The company primarily generates revenue through community banking and home mortgage lending, with recent figures showing contributions of $106.27 million and $24.08 million respectively. It operates with a consistently high gross profit margin reported at 100%, reflecting the absence of cost of goods sold in its financial structure, while managing operational expenses that include significant general and administrative costs alongside sales and marketing expenditures.

Northrim BanCorp, often overlooked, showcases robust financial health with total assets of $2.8B and a strong net interest margin of 4.2%. The company has a prudent bad loan allowance at 0.3% of total loans, ensuring stability in its lending operations. Recently affirming its quarterly dividend at $0.61 per share reflects confidence in ongoing profitability, supported by a notable earnings increase to $8.2M this quarter from the previous year’s $4.83M, highlighting sustainable growth and shareholder value enhancement.

• Click here and access our complete health analysis report to understand the dynamics of Northrim BanCorp.

• Examine Northrim BanCorp's past performance report to understand how it has performed in the past.

Hagerty (NYSE:HGTY)

Simply Wall St Value Rating: ★★★★★☆

Overview: Hagerty, Inc. operates globally as an insurance agency, with a market capitalization of approximately $979.16 million.

Operations: The company generates its revenue primarily through insurance brokerage, with a notable increase in gross profit from $163.73 million in 2018 to $601.19 million by mid-2024, reflecting an upward trend in efficiency despite rising costs of goods sold (COGS). Over the years, operating expenses have also escalated, closely aligning with revenue growth which peaked at $1.05 billion by July 2024. This suggests a scaling of business operations while managing to keep gross profit margins above 50%, indicating a relatively stable cost management strategy relative to the generated revenues.

Hagerty, a lesser-known yet promising entity in the insurance sector, reported a substantial earnings growth of 498.3% over the past year, outpacing the industry average of 46.6%. With more cash than total debt and positive free cash flow, financial stability appears robust. The recent appointment of Tony Kuczinski to the board could bring seasoned leadership, potentially enhancing strategic direction. Additionally, an expanded credit facility suggests confidence from financial partners in Hagerty's growth trajectory.

• Navigate through the intricacies of Hagerty with our comprehensive health report here.

• Learn about Hagerty's historical performance.

Where To Now?

• Click through to start exploring the rest of the 219 US Undiscovered Gems With Strong Fundamentals now.
• Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.
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Ready For A Different Approach?

• 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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