Three Undiscovered Gems in the United States with Strong Potential

The market is up 1.2% over the last week and has seen a remarkable 26% increase over the past 12 months, with earnings forecast to grow by 15% annually. In this thriving environment, identifying stocks with strong potential can be key to capitalizing on future growth opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Hamilton Beach Brands Holding	34.31%	1.65%	4.46%	★★★★★★
Morris State Bancshares	10.20%	-0.32%	6.73%	★★★★★★
San Juan Basin Royalty Trust	NA	39.20%	40.92%	★★★★★★
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%	★★★★★★
Oil-Dri Corporation of America	20.63%	10.47%	20.87%	★★★★★☆
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
FRMO	0.17%	12.99%	23.62%	★★★★☆☆

Click here to see the full list of 217 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

XPEL (NasdaqCM:XPEL)

Simply Wall St Value Rating: ★★★★★☆

Overview: XPEL, Inc. is a global company that specializes in selling, distributing, and installing protective films and coatings with a market cap of $1.25 billion (NasdaqCM:XPEL).

Operations: XPEL generates revenue primarily from its Auto Parts & Accessories segment, totaling $408.24 million. The company has a market cap of $1.25 billion (NasdaqCM:XPEL).

XPEL, a small cap auto components player, has had a volatile share price recently. Despite this, the company boasts high-quality earnings and is trading at 28.4% below its estimated fair value. Over the past five years, XPEL's debt to equity ratio increased from 4.6% to 5.6%, yet its interest payments are well covered by EBIT (48x). However, recent legal issues and class action lawsuits have raised concerns about market competition and revenue growth sustainability for 2023-2024.

• Take a closer look at XPEL's potential here in our health report.

• Gain insights into XPEL's historical performance by reviewing our past performance report.

Hovnanian Enterprises (NYSE:HOV)

Simply Wall St Value Rating: ★★★★★☆

Overview: Hovnanian Enterprises, Inc., through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States with a market cap of approximately $1.38 billion.

Operations: Hovnanian Enterprises generates revenue primarily from its residential home construction and financial services, with the latter contributing $70.40 million. Segment adjustments amount to $2.84 billion.

Hovnanian Enterprises, a prominent player in the homebuilding sector, has seen impressive earnings growth of 49.2% over the past year, surpassing industry averages. The company reported Q3 2024 revenues of US$722.7 million and net income of US$72.92 million, up from US$649.96 million and US$55.76 million respectively a year ago. Trading at 73.7% below its estimated fair value, HOV also repurchased 655,471 shares for $36.82 million under its ongoing buyback program announced in September 2022.

• Click to explore a detailed breakdown of our findings in Hovnanian Enterprises' health report.

• Learn about Hovnanian Enterprises' historical performance.

Valhi (NYSE:VHI)

Simply Wall St Value Rating: ★★★★★☆

Overview: Valhi, Inc. operates in the chemicals, component products, and real estate management and development sectors across Europe, North America, the Asia Pacific, and internationally with a market cap of $841.49 million.

Operations: Valhi generates revenue primarily from its chemicals segment ($1.78 billion), followed by component products ($157.40 million) and real estate management and development ($78.50 million). The company's net profit margin is %.

Valhi has seen a remarkable turnaround, with earnings growing by 215.4% over the past year, outpacing the Chemicals industry’s -4.8%. The debt to equity ratio improved from 78% to 38.7% in five years, and its net debt to equity ratio stands at a satisfactory 8.6%. Recent earnings reports show net income of US$19.9 million for Q2 compared to a loss of US$3.2 million last year, and basic EPS from continuing operations at US$0.70 versus a loss of US$0.11 previously.

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

• Gain insights into Valhi's past trends and performance with our Past report.

Taking Advantage

• Investigate our full lineup of 217 US Undiscovered Gems With Strong Fundamentals right here.
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Seeking Other Investments?

• 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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