Discovering Three Undiscovered Gems in the United States

The recent plunge in U.S. stocks, spurred by a weak July jobs report and heightened market volatility, has left investors scrambling for stability. Amidst this turbulence, small-cap stocks often present unique opportunities for those willing to explore beyond the well-trodden paths of large-cap giants. In this article, we will uncover three lesser-known gems in the United States market that could offer potential value despite current economic uncertainties.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Morris State Bancshares	10.20%	-0.32%	6.73%	★★★★★★
Jiayin Group	NA	23.46%	30.79%	★★★★★★
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%	★★★★★★
Gravity	NA	15.31%	24.42%	★★★★★★
CSP	2.17%	-5.57%	73.73%	★★★★★☆
Meta Data	2151.54%	-34.97%	-16.25%	★★★★☆☆
FRMO	0.19%	6.49%	15.82%	★★★★☆☆

Click here to see the full list of 220 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

PC Connection (NasdaqGS:CNXN)

Simply Wall St Value Rating: ★★★★★★

Overview: PC Connection, Inc., together with its subsidiaries, provides various information technology (IT) solutions worldwide and has a market cap of $1.91 billion.

Operations: The company generates revenue through three primary segments: Business Solutions ($1.08 billion), Enterprise Solutions ($1.18 billion), and Public Sector Solutions ($501.03 million).

PC Connection, Inc. (PC Connection) stands out with a 16.8% earnings growth over the past year, significantly outperforming the Electronic industry’s -8.8%. The company reported Q2 2024 sales of US$736.48 million and net income of US$26.16 million, up from US$19.7 million a year ago, reflecting robust performance with basic EPS rising to $0.99 from $0.75 last year. Additionally, PC Connection has been selected for significant projects like launching Copilot+ PCs with Microsoft and Qualcomm, underscoring its strategic partnerships and innovation capabilities in AI workloads.

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

• Understand PC Connection's track record by examining our Past report.

Powell Industries (NasdaqGS:POWL)

Simply Wall St Value Rating: ★★★★★★

Overview: Powell Industries, Inc., together with its subsidiaries, designs, develops, manufactures, sells, and services custom-engineered equipment and systems with a market cap of $1.84 billion.

Operations: Powell Industries generates revenue primarily from its Electric Equipment segment, which reported $945.93 million in sales. The company's market cap stands at $1.84 billion.

Powell Industries has shown impressive performance with earnings growing by 253.6% over the past year, outpacing the Electrical industry’s 19.8%. The company reported Q3 sales of US$288.17 million, up from US$192.37 million a year ago, and net income surged to US$46.22 million from US$18.45 million last year. Trading at a P/E ratio of 14.1x, below the market average of 17.5x, Powell is debt-free and continues to be free cash flow positive.

• Click to explore a detailed breakdown of our findings in Powell Industries' health report.

• Evaluate Powell Industries' historical performance by accessing our past performance report.

First Bancshares (NYSE:FBMS)

Simply Wall St Value Rating: ★★★★★★

Overview: The First Bancshares, Inc. (NYSE:FBMS) is a bank holding company for The First Bank, offering general commercial and retail banking services with a market cap of $1.01 billion.

Operations: The First Bancshares, Inc. generates revenue primarily through its commercial and retail banking services. The company has a market capitalization of $1.01 billion.

First Bancshares, with total assets of US$8.0 billion and equity of US$971.9 million, has deposits totaling US$6.6 billion and loans amounting to US$5.2 billion. It boasts a net interest margin of 3.6% and maintains an appropriate level of bad loans at 0.3%. Despite recent earnings per share from continuing operations dropping to $0.62 in Q2 2024 from $0.75 a year ago, the company’s earnings growth (7.6%) outpaced the industry average (-15%).

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

• Explore historical data to track First Bancshares' performance over time in our Past section.

Taking Advantage

• Discover the full array of 220 US Undiscovered Gems With Strong Fundamentals right here.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Ready To Venture Into Other Investment Styles?

• 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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