Three Undiscovered Gems in the United States with Strong Potential

Over the last 7 days, the market has risen 3.0%, contributing to a 25% increase over the past 12 months, with earnings forecasted to grow by 15% annually. In this favorable environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding for investors.

Top 10 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%	★★★★★★
Banco Latinoamericano de Comercio Exterior S. A	311.64%	21.07%	24.77%	★★★★★☆
Innovex International	19.92%	29.88%	40.68%	★★★★★☆
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
QDM International	36.42%	107.08%	78.76%	★★★★★☆
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.

We'll examine a selection from our screener results.

Cricut (NasdaqGS:CRCT)

Simply Wall St Value Rating: ★★★★★★

Overview: Cricut, Inc. designs, markets, and distributes a creativity platform that helps users create professional-looking handmade goods, with a market cap of $1.35 billion.

Operations: Cricut generates revenue primarily through the sale of its creativity platform and related products. The company reported a market cap of $1.35 billion.

Cricut has shown impressive growth with earnings increasing by 40.2% over the past year, outpacing the Consumer Durables industry which had a -1.6% change. The company is debt-free, contrasting its 49.9% debt-to-equity ratio from five years ago, and recently repurchased 1,406,983 shares for US$8.86 million between May and June 2024. Despite significant insider selling in the past three months, Cricut trades at 45.3% below its estimated fair value and boasts high-quality earnings with positive free cash flow.

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

• Gain insights into Cricut's past trends and performance with our Past 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 $1.31 billion.

Operations: Hovnanian Enterprises generates revenue primarily from its Homebuilding segments, with $1.37 billion from the West, $989.39 million from the Northeast, and $474.97 million from the Southeast regions; additionally, it earns $70.40 million through Financial Services.

Hovnanian Enterprises, a homebuilder, has shown impressive performance with earnings growth of 51.3% over the past year, outpacing the Consumer Durables industry. The company's net debt to equity ratio stands at 145.9%, which is considered high, but interest payments are well covered by EBIT at 7.6x coverage. Hovnanian's price-to-earnings ratio of 6.1x suggests it is undervalued compared to the US market average of 18.1x. Recent buybacks saw $11.49 million spent repurchasing shares from May to July 2024, reflecting confidence in its future prospects.

• Take a closer look at Hovnanian Enterprises' potential here in our health report.

• Explore historical data to track Hovnanian Enterprises' performance over time in our Past section.

Worthington Steel (NYSE:WS)

Simply Wall St Value Rating: ★★★★★☆

Overview: Worthington Steel, Inc. operates as a steel processor in North America with a market cap of approximately $1.67 billion.

Operations: The company's primary revenue stream is from its Metal Processors and Fabrication segment, generating $3.43 billion.

Worthington Steel has shown impressive earnings growth of 77.6% over the past year, far outpacing the Metals and Mining industry average. The company's net debt to equity ratio stands at a satisfactory 9.6%, indicating prudent financial management. Trading at 42.5% below its estimated fair value, it seems undervalued in the market. Recent earnings for Q4 reported sales of US$911 million with net income of US$53.2 million, reflecting solid performance despite a slight dip from last year's figures.

• Get an in-depth perspective on Worthington Steel's performance by reading our health report here.

• Evaluate Worthington Steel's historical performance by accessing our past performance report.

Turning Ideas Into Actions

• Click this link to deep-dive into the 211 companies within our US Undiscovered Gems With Strong Fundamentals screener.
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Contemplating Other Strategies?

• 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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