Stock Analysis

Three Undiscovered Gems in the US Market with Promising Potential

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Over the last 7 days, the United States market has experienced a slight dip of 1.0%, yet it remains robust with a 30% increase over the past year and an expected annual earnings growth of 15%. In this dynamic environment, identifying stocks with strong fundamentals and growth potential can uncover promising opportunities for investors seeking to capitalize on these trends.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Franklin Financial Services222.36%5.55%-1.86%★★★★★★
Parker Drilling46.25%-0.33%53.04%★★★★★★
Morris State Bancshares17.84%4.83%6.58%★★★★★★
Wilson Bank HoldingNA7.87%8.22%★★★★★★
Omega FlexNA0.39%2.57%★★★★★★
First Northern Community BancorpNA7.65%11.17%★★★★★★
TeekayNA-3.71%60.91%★★★★★★
ASA Gold and Precious MetalsNA7.11%-35.88%★★★★★☆
AirJoule TechnologiesNAnan127.67%★★★★★☆
FRMO0.13%19.43%29.70%★★★★☆☆

Click here to see the full list of 229 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's uncover some gems from our specialized screener.

Pathward Financial (NasdaqGS:CASH)

Simply Wall St Value Rating: ★★★★★★

Overview: Pathward Financial, Inc. is a bank holding company for Pathward, National Association, offering a range of banking products and services in the United States with a market cap of approximately $1.96 billion.

Operations: Pathward Financial generates revenue primarily through its banking products and services. The company's net profit margin was reported at 25.4% in the latest financial period, reflecting its ability to manage costs effectively relative to income.

Pathward Financial, with assets totaling US$7.5 billion and equity of US$839.6 million, presents an intriguing opportunity in the financial sector. Its total deposits stand at US$5.9 billion against loans of US$4 billion, reflecting a robust balance sheet backed by a net interest margin of 6.1%. The company maintains a sufficient allowance for bad loans at 109%, with non-performing loans at just 1%, indicating prudent risk management. Recent earnings guidance suggests GAAP earnings per share between $7.10 to $7.60 for fiscal 2025, excluding certain impacts, while it has repurchased over 236K shares recently for $14.99 million, enhancing shareholder value amidst competitive pressures and economic uncertainties.

NasdaqGS:CASH Debt to Equity as at Nov 2024

Global Industrial (NYSE:GIC)

Simply Wall St Value Rating: ★★★★★★

Overview: Global Industrial Company is an industrial distributor specializing in a wide range of MRO products across North America, with a market cap of approximately $1.04 billion.

Operations: Global Industrial generates revenue primarily from its Industrial Products Group, which reported $1.33 billion in sales. The company's financial performance includes a focus on managing costs to optimize profitability, with particular attention to its gross profit margin trends over recent periods.

Global Industrial, a nimble player in the MRO distribution space, showcases a robust balance sheet with zero debt, providing ample room for strategic investments. Recent earnings reveal sales of US$342 million for Q3 2024, down from US$355 million last year, while net income dropped to US$17 million from US$21 million. Despite these challenges and negative earnings growth of -5.4% over the past year, the company trades at nearly 70% below fair value estimates and is forecasted to grow earnings by 12% annually. This positions it as an intriguing prospect amidst its industry peers.

NYSE:GIC Debt to Equity as at Nov 2024

La-Z-Boy (NYSE:LZB)

Simply Wall St Value Rating: ★★★★★★

Overview: La-Z-Boy Incorporated is engaged in the manufacturing, marketing, importing, exporting, distribution, and retailing of upholstery furniture products across the United States, Canada, and internationally with a market cap of approximately $1.76 billion.

Operations: La-Z-Boy generates revenue primarily through the sale of upholstery furniture products. The company's net profit margin is a key financial metric to consider when evaluating its profitability.

La-Z-Boy, a recognized name in furniture, is making strategic moves to bolster its market presence. The company reported sales of US$521 million for the recent quarter, up from US$511 million last year, with net income rising to US$30 million from US$27.2 million. Earnings per share increased to US$0.72 from US$0.63, reflecting its strong performance despite industry challenges like high mortgage rates and sluggish demand. With no debt on its books and trading 31.5% below estimated fair value, La-Z-Boy seems well-positioned for growth as it expands through acquisitions and new store openings while maintaining robust free cash flow of over US$109 million recently.

NYSE:LZB Debt to Equity as at Nov 2024

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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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