Discovering Undiscovered Gems in the United States This August 2024

In the last week, the market has been flat, but it is up 21% over the past year with earnings expected to grow by 15% per annum over the next few years. In such a dynamic environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Hamilton Beach Brands Holding	34.31%	1.65%	4.46%	★★★★★★
Morris State Bancshares	10.20%	-0.32%	6.73%	★★★★★★
River Financial	122.41%	16.43%	18.50%	★★★★★★
Mission Bancorp	25.37%	16.23%	20.16%	★★★★★★
Teekay	NA	-6.48%	55.79%	★★★★★★
Omega Flex	NA	1.31%	3.88%	★★★★★★
First Northern Community Bancorp	NA	7.12%	10.04%	★★★★★★
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
QDM International	36.42%	107.08%	78.76%	★★★★★☆
FRMO	0.17%	12.99%	23.62%	★★★★☆☆

Click here to see the full list of 219 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

Republic Bancorp (NasdaqGS:RBCA.A)

Simply Wall St Value Rating: ★★★★★★

Overview: Republic Bancorp, Inc. operates as a bank holding company for Republic Bank & Trust Company, offering a range of banking products and services in the United States with a market cap of $1.23 billion.

Operations: Republic Bancorp generates revenue primarily through its Core Banking segment, with Traditional Banking contributing $223.15 million and Warehouse Lending adding $9.91 million. The Republic Processing Group (RPG) also plays a significant role, with Tax Refund Solutions generating $22.68 million, Republic Credit Solutions at $39.93 million, and Republic Payment Solutions at $17.85 million.

Republic Bancorp, with total assets of US$6.6 billion and equity of US$955.4 million, has shown notable performance. Total deposits stand at US$5.1 billion while loans amount to US$5.2 billion, reflecting a robust balance sheet. The bank's net interest margin is 4.9%, and it maintains an appropriate level of bad loans at 0.4%. Earnings grew by 10.8% over the past year, outpacing the industry average decline of -16%.

• Get an in-depth perspective on Republic Bancorp's performance by reading our health report here.

• Review our historical performance report to gain insights into Republic Bancorp's's past performance.

ScanSource (NasdaqGS:SCSC)

Simply Wall St Value Rating: ★★★★★★

Overview: ScanSource, Inc. distributes technology products and solutions across the United States, Canada, and internationally with a market cap of $1.18 billion (NasdaqGS:SCSC).

Operations: The company generates revenue through the distribution of technology products and solutions in North America and internationally. It has a market capitalization of $1.18 billion (NasdaqGS:SCSC).

ScanSource, a promising player in the tech distribution sector, has seen its debt to equity ratio fall from 36.2% to 15.6% over the past five years. Despite a challenging year with negative earnings growth of -12.5%, it trades at 16.2% below estimated fair value and covers interest payments comfortably at 26.7x EBIT coverage. Recent initiatives include acquiring Advantix and Resourcive, aiming to enhance recurring revenue and expand service offerings for hardware VARs.

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

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

Valhi (NYSE:VHI)

Simply Wall St Value Rating: ★★★★★☆

Overview: Valhi, Inc. operates in the chemicals, component products, and real estate management and development sectors across Europe, North America, the Asia Pacific, and internationally with a market cap of $807.82 million.

Operations: Valhi, Inc. generates revenue primarily from its chemicals segment ($1.78 billion), followed by component products ($157.40 million) and real estate management and development ($78.50 million). The net profit margin for the company is a key metric to consider when evaluating its financial performance.

Valhi's net debt to equity ratio stands at 8.6%, a satisfactory level, and its earnings growth of 215.4% over the past year significantly outpaced the Chemicals industry average of -4.8%. The company's debt to equity ratio has improved from 78% to 38.7% over five years, reflecting solid financial management. Recent quarterly results showed sales of US$559.7 million and a net income of US$19.9 million, compared to a net loss last year, indicating strong performance improvements.

• Click to explore a detailed breakdown of our findings in Valhi's health report.

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

Where To Now?

• Investigate our full lineup of 219 US Undiscovered Gems With Strong Fundamentals right here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
• Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Looking For Alternative Opportunities?

• 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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