Three Undiscovered Gems In The United States With Strong Fundamentals

Over the last 7 days, the market has remained flat. As for the longer term, the market has risen 22% in the past 12 months and earnings are forecast to grow by 15% annually. In this context, identifying stocks with strong fundamentals becomes crucial for investors seeking sustainable growth amidst these conditions.

Top 5 Undiscovered Gems With Strong Fundamentals In The United States

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Morris State Bancshares	10.20%	-0.28%	6.97%	★★★★★★
Teekay	NA	-6.48%	55.79%	★★★★★★
Mission Bancorp	25.37%	16.23%	20.16%	★★★★★★
Omega Flex	NA	1.31%	3.88%	★★★★★★
First Northern Community Bancorp	NA	7.12%	10.04%	★★★★★★
Dril-Quip	NA	1.06%	19.11%	★★★★★★
First National Bank Alaska	221.06%	2.98%	1.82%	★★★★★☆
Banco Latinoamericano de Comercio Exterior S. A	311.64%	21.07%	24.77%	★★★★★☆
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
Innovex International	12.24%	18.91%	15.98%	★★★★★☆
FRMO	0.17%	12.99%	23.62%	★★★★☆☆

Click here to see the full list of 211 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Karooooo (NasdaqCM:KARO)

Simply Wall St Value Rating: ★★★★★★

Overview: Karooooo Ltd. offers a mobility software-as-a-service (SaaS) platform for connected vehicles across multiple regions including South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States with a market cap of $1.15 billion.

Operations: Karooooo Ltd. generates revenue primarily from its Cartrack segment (ZAR 3.74 billion) and Karooooo Logistics (ZAR 355.99 million), with a segment adjustment of ZAR 193.22 million.

Karooooo, a promising player in the software sector, has seen its earnings grow by 33.5% over the past year and is forecasted to grow at 13.34% annually. The company trades at 43.1% below its estimated fair value and boasts a debt-to-equity ratio reduced from 21.7% to 3% over five years. Recent events include appointing Deloitte as auditors and declaring an interim dividend of US$1.08 per share due to robust earnings and free cash flow performance.

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

• Learn about Karooooo's historical performance.

Limbach Holdings (NasdaqCM:LMB)

Simply Wall St Value Rating: ★★★★★★

Overview: Limbach Holdings, Inc. operates as a building systems solution company in the United States with a market cap of $772.77 million.

Operations: Limbach generates revenue primarily through Owner Direct Relationships ($301.47 million) and General Contractor Relationships ($210.20 million).

Limbach Holdings has shown impressive earnings growth of 64.9% over the past year, outpacing the construction industry average of 23.5%. The company’s debt to equity ratio has significantly reduced from 88% to 7.2% in five years, indicating strong financial health. Trading at 43.7% below its estimated fair value, Limbach also reported net income of US$5.96 million for Q2 2024 and raised its full-year revenue guidance to a range of US$515 million to US$535 million.

• Dive into the specifics of Limbach Holdings here with our thorough health report.

• Understand Limbach Holdings' track record by examining our Past report.

Powell Industries (NasdaqGS:POWL)

Simply Wall St Value Rating: ★★★★★★

Overview: Powell Industries, Inc., along with its subsidiaries, specializes in the design, development, manufacturing, sale, and servicing of custom-engineered equipment and systems with a market cap of $1.95 billion.

Operations: Powell Industries generates revenue primarily from its Electric Equipment segment, which accounts for $945.93 million. The company's market cap stands at approximately $1.95 billion.

Powell Industries, a lesser-known entity in the electrical industry, has shown impressive growth with earnings surging by 253.6% over the past year. The company is debt-free and trades at a favorable P/E ratio of 15x compared to the US market's 17.5x. Recent earnings reports indicate net income for Q3 reached US$46.22 million, up from US$18.45 million last year, reflecting high-quality earnings and strong financial health despite recent volatility in share price movements.

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

• Explore historical data to track Powell Industries' performance over time in our Past section.

Next Steps

• Discover the full array of 211 US Undiscovered Gems With Strong Fundamentals right here.
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Curious About Other Options?

• 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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