Discovering US Undiscovered Gems With Potential In December 2025

Simply Wall St

In recent weeks, the U.S. stock market has shown mixed signals, with the S&P 500 and Dow Jones experiencing declines following an unexpected rise in unemployment rates, while the Nasdaq managed a slight uptick amid ongoing concerns about an AI bubble. Amid these fluctuations, investors are increasingly on the lookout for promising small-cap stocks that could offer growth potential despite broader economic uncertainties.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Morris State Bancshares1.99%2.14%1.63%★★★★★★
Sound Financial Bancorp34.24%1.40%-12.55%★★★★★★
Epsilon EnergyNA2.43%-4.36%★★★★★★
Franklin Financial Services127.01%5.48%-4.56%★★★★★★
Affinity Bancshares43.06%2.84%3.44%★★★★★★
First Northern Community BancorpNA7.79%11.96%★★★★★★
Seneca Foods41.64%2.31%-23.77%★★★★★☆
Pure Cycle4.76%6.42%-1.58%★★★★★☆
FRMO0.10%35.28%40.61%★★★★★☆
Union Bankshares369.65%1.12%-7.45%★★★★☆☆

Click here to see the full list of 298 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

FVCBankcorp (FVCB)

Simply Wall St Value Rating: ★★★★★★

Overview: FVCBankcorp, Inc. is a bank holding company for FVCbank, offering a range of banking products and services to small and medium-sized businesses, professionals, non-profit organizations and associations, with a market cap of $253.05 million.

Operations: FVCBankcorp generates revenue primarily from its banking segment, which reported $64.24 million. The company focuses on providing financial services to a diverse clientele, including businesses and non-profit organizations.

FVCBankcorp, with total assets of US$2.3 billion and equity of US$249.8 million, shows strong financial health. The bank's total deposits stand at US$2 billion against loans of US$1.8 billion, ensuring a stable funding structure with 96% low-risk liabilities from customer deposits. Its allowance for bad loans is robust at 162%, while non-performing loans are just 0.6%. Earnings surged by an impressive 318% over the past year, outpacing the industry growth rate of 18%. Trading at a discount to its estimated fair value by about 22%, FVCB appears undervalued in the current market context.

FVCB Earnings and Revenue Growth as at Dec 2025

C&F Financial (CFFI)

Simply Wall St Value Rating: ★★★★★★

Overview: C&F Financial Corporation is a bank holding company for Citizens and Farmers Bank, offering banking services to individuals and businesses, with a market cap of $250.09 million.

Operations: C&F Financial Corporation generates revenue primarily through its Community Banking segment, contributing $97.12 million, and is supplemented by the Consumer Finance and Mortgage Banking segments at $15.14 million and $14.79 million respectively.

With total assets of US$2.7 billion and equity of US$253.9 million, C&F Financial stands out with its solid financial health. The bank's net interest margin is 4.1%, and it has a robust allowance for bad loans at 0.1% of total loans, indicating prudent risk management practices. Earnings growth over the past year was impressive at 38.7%, outpacing the industry average of 18.2%. Trading at a discount, it's valued at 27% below fair value estimates, making it an attractive prospect for investors seeking undervalued opportunities in the financial sector with strong fundamentals and growth potential.

CFFI Debt to Equity as at Dec 2025

Global Industrial (GIC)

Simply Wall St Value Rating: ★★★★★★

Overview: Global Industrial Company operates as an industrial distributor of MRO products in the United States and Canada, with a market cap of approximately $1.16 billion.

Operations: Global Industrial generates revenue primarily through its Industrial Products Group, which reported $1.34 billion in sales. The company's cost structure and operational efficiency impact its profitability, with a focus on optimizing margins to enhance financial performance.

Global Industrial, a nimble player in the trade distribution sector, has been making waves with its impressive financial health. Over the past year, earnings shot up by 3.5%, outpacing the industry average of -1.1%. With no debt on its books for five years, it operates without concerns over interest payments. The company reported third-quarter sales of US$353.6 million and net income of US$18.8 million, both higher than last year's figures. Trading at nearly 40% below estimated fair value, Global Industrial seems poised for continued growth with earnings forecasted to rise by 11% annually.

GIC Debt to Equity as at Dec 2025

Next Steps

  • Explore the 298 names from our US Undiscovered Gems With Strong Fundamentals screener here.
  • Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
  • Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

Interested In Other Possibilities?

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.

Valuation is complex, but we're here to simplify it.

Discover if Global Industrial might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com