Uncovering Undiscovered Gems in the United States December 2024

In the last week, the United States market has stayed flat, yet it boasts a remarkable 30% increase over the past year with earnings projected to grow by 15% annually in the coming years. In this dynamic environment, identifying stocks that are poised for growth and have yet to capture widespread attention can be key to uncovering true investment potential.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Franklin Financial Services	173.21%	5.55%	-1.86%	★★★★★★
Wilson Bank Holding	NA	7.87%	8.22%	★★★★★★
Morris State Bancshares	17.84%	4.83%	6.58%	★★★★★★
Omega Flex	NA	0.39%	2.57%	★★★★★★
Parker Drilling	46.05%	0.86%	52.25%	★★★★★★
Teekay	NA	-3.71%	60.91%	★★★★★★
First Northern Community Bancorp	NA	7.65%	11.17%	★★★★★★
ASA Gold and Precious Metals	NA	7.11%	-35.88%	★★★★★☆
Pure Cycle	5.31%	-4.44%	-5.74%	★★★★★☆
FRMO	0.13%	19.43%	29.70%	★★★★☆☆

Click here to see the full list of 235 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Mid Penn Bancorp (NasdaqGM:MPB)

Simply Wall St Value Rating: ★★★★★★

Overview: Mid Penn Bancorp, Inc. is the bank holding company for Mid Penn Bank, offering commercial banking services to a diverse clientele including individuals and organizations, with a market cap of $603.76 million.

Operations: Mid Penn Bancorp generates revenue primarily through its full-service commercial banking and trust business, amounting to $173.42 million.

Mid Penn Bancorp, a financial player with assets totaling US$5.5 billion and equity of US$573.1 million, seems undervalued by 45.2% compared to its fair value estimate. The company boasts a strong bad loan allowance at 205%, indicating prudent risk management with non-performing loans at just 0.4%. Its earnings growth of 17.8% outpaces the industry average, suggesting robust performance despite recent shareholder dilution through a US$70 million equity offering in November 2024. With deposits reaching US$4.7 billion and loans at US$4.4 billion, it maintains stability through low-risk funding sources primarily from customer deposits.

• Click here and access our complete health analysis report to understand the dynamics of Mid Penn Bancorp.

• Examine Mid Penn Bancorp's past performance report to understand how it has performed in the past.

Diamond Hill Investment Group (NasdaqGS:DHIL)

Simply Wall St Value Rating: ★★★★★★

Overview: Diamond Hill Investment Group, Inc. operates through its subsidiary, Diamond Hill Capital Management, Inc., offering investment advisory and fund administration services in the United States with a market cap of $439.51 million.

Operations: Diamond Hill generates revenue primarily through its investment advisory and related services, amounting to $145.80 million. The company's market cap stands at $439.51 million.

Diamond Hill Investment Group, a nimble player in the financial sector, has been making waves with its robust performance. Over the past year, earnings surged by 13.6%, outpacing the Capital Markets industry growth of 12.9%. The firm is trading at 46% below its estimated fair value, presenting an intriguing opportunity for investors. Notably debt-free for five years and generating positive free cash flow, Diamond Hill recently reported a significant boost in net income to US$14.64 million from US$6.47 million year-on-year for Q3 2024. Additionally, it completed a substantial share buyback program worth US$45.21 million this year.

• Unlock comprehensive insights into our analysis of Diamond Hill Investment Group stock in this health report.

• Learn about Diamond Hill Investment Group's historical performance.

Investors Title (NasdaqGS:ITIC)

Simply Wall St Value Rating: ★★★★★★

Overview: Investors Title Company specializes in providing title insurance for residential, institutional, commercial, and industrial properties, with a market capitalization of $496.99 million.

Operations: The company generates revenue primarily from title insurance, amounting to $234.89 million, and exchange services contributing $11.67 million. The net profit margin reflects its profitability trends over time.

Investors Title, a niche player in the insurance sector, showcases robust financial health with no debt over the past five years and high-quality earnings. Despite a 22.1% earnings growth last year, it lagged behind the industry’s 33.2%. The company is trading at 17.4% below its estimated fair value, suggesting potential undervaluation. Recent performance highlights include third-quarter revenue of US$68.83 million and net income of US$9.32 million, up from US$61.41 million and US$7.08 million respectively from the previous year; diluted EPS improved to US$4.92 from US$3.75, reflecting solid operational efficiency despite broader challenges in earnings growth over time.

• Click here to discover the nuances of Investors Title with our detailed analytical health report.

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

Taking Advantage

• Gain an insight into the universe of 235 US Undiscovered Gems With Strong Fundamentals by clicking here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Seeking Other Investments?

• 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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