Stock Analysis

Undiscovered Gems in United States for August 2024

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Over the last 7 days, the market has dropped 5.7%, driven by a pullback of 8.0% in the Information Technology sector. In the last year, however, the market is up 14%, with earnings forecast to grow by 15% annually. In this dynamic environment, finding undiscovered gems that offer potential growth and resilience can be key to navigating volatility and capitalizing on future opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Morris State Bancshares10.20%-0.32%6.73%★★★★★★
National Presto IndustriesNA1.84%-11.34%★★★★★★
Mission Bancorp25.37%16.23%20.16%★★★★★★
TeekayNA-6.48%55.79%★★★★★★
Omega FlexNA1.31%3.88%★★★★★★
First Northern Community BancorpNA7.12%10.04%★★★★★★
GravityNA15.31%24.42%★★★★★★
LongduoduoNA69.14%101.50%★★★★★★
CSP2.17%-5.57%73.73%★★★★★☆
FRMO0.19%6.49%15.82%★★★★☆☆

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

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

Willdan Group (NasdaqGM:WLDN)

Simply Wall St Value Rating: ★★★★★★

Overview: Willdan Group, Inc., with a market cap of $508.70 million, provides professional, technical, and consulting services primarily in the United States through its various subsidiaries.

Operations: Willdan Group's revenue primarily comes from its Energy segment, generating $464.27 million, and its Engineering and Consulting segment, contributing $87.63 million.

Willdan Group, a small cap in the professional services sector, has shown impressive growth. Their earnings skyrocketed by 1855.4% over the past year, outpacing industry growth of 4.9%. The debt to equity ratio improved from 68.3% to 44.1% over five years, and their net debt to equity ratio stands at a satisfactory 23.3%. Recent Q2 earnings reported sales of US$141 million and net income of US$4.59 million compared to US$119 million and US$0.397 million last year respectively.

NasdaqGM:WLDN Earnings and Revenue Growth as at Aug 2024

EZCORP (NasdaqGS:EZPW)

Simply Wall St Value Rating: ★★★★★☆

Overview: EZCORP, Inc. offers pawn services across the United States and Latin America with a market cap of $593.93 million.

Operations: EZCORP, Inc. generates revenue primarily from U.S. Pawn ($818.54 million) and Latin America Pawn ($318.95 million). The company has a market cap of $593.93 million, reflecting its significant footprint in the pawn services sector across these regions.

EZCORP has shown impressive earnings growth of 119.9% over the past year, significantly outpacing the Consumer Finance industry’s -9.2%. Trading at a price-to-earnings ratio of 7.9x, it appears undervalued compared to the US market average of 17.1x. The company’s net debt to equity ratio stands at a satisfactory 17.9%, and its interest payments are well covered by EBIT at 35.2x coverage, indicating financial stability and good relative value among peers.

NasdaqGS:EZPW Debt to Equity as at Aug 2024

Hamilton Beach Brands Holding (NYSE:HBB)

Simply Wall St Value Rating: ★★★★★★

Overview: Hamilton Beach Brands Holding Company, with a market cap of $367.16 million, designs, markets, and distributes small electric household and specialty housewares appliances in the United States and internationally.

Operations: Hamilton Beach Brands Holding Company generates revenue primarily through its subsidiary, Hamilton Beach Brands, Inc., which reported $644.78 million in sales. The company's financial performance is influenced by its gross profit margin of 22.5%.

Hamilton Beach Brands Holding has demonstrated impressive financial performance, with earnings growth of 316.6% over the past year, significantly outpacing the Consumer Durables industry. The company’s debt to equity ratio has improved from 154% to 34.3% over five years, and its net debt to equity ratio stands at a satisfactory 8%. Additionally, EBIT covers interest payments by a robust margin of 40.7x. Trading at 56.4% below estimated fair value suggests potential undervaluation for investors seeking opportunities in this sector.

NYSE:HBB Earnings and Revenue Growth as at Aug 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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