Uncovering 3 Hidden Gems In The United States Market

Over the last 7 days, the market has dropped 2.3%, but in the last year, it is up by 17%, with earnings forecast to grow by 15% annually. In this dynamic environment, identifying stocks that offer strong growth potential and solid fundamentals can be particularly rewarding; here are three hidden gems in the United States market worth exploring.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Jiayin Group	NA	23.46%	30.79%	★★★★★★
Morris State Bancshares	14.93%	0.44%	7.74%	★★★★★★
Omega Flex	NA	2.13%	4.77%	★★★★★★
Teekay	NA	-8.88%	49.65%	★★★★★★
First Northern Community Bancorp	NA	6.68%	9.08%	★★★★★★
Mission Bancorp	25.37%	16.23%	20.16%	★★★★★★
Gravity	NA	15.31%	24.42%	★★★★★★
CSP	2.17%	-5.57%	73.73%	★★★★★☆
Security National Financial	33.63%	3.33%	4.15%	★★★★★☆
FRMO	0.19%	6.49%	15.82%	★★★★☆☆

Click here to see the full list of 221 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

XPEL (NasdaqCM:XPEL)

Simply Wall St Value Rating: ★★★★★☆

Overview: XPEL, Inc. is engaged in the global sale, distribution, and installation of protective films and coatings with a market cap of $1.10 billion.

Operations: XPEL generates revenue primarily from its Auto Parts & Accessories segment, amounting to $400.56 million. The company's market cap stands at $1.10 billion.

XPEL, a niche player in protective films and coatings, shows promising aspects despite recent volatility. The company's net debt to equity ratio stands at 8.4%, reflecting sound financial health. Over the past five years, earnings have surged by 32.3% annually, although last year's growth of 6.7% matched the Auto Components industry average. Recent partnerships like the one with Tint World are likely to expand market reach and product offerings significantly. Trading at 9.6% below its estimated fair value suggests potential upside for investors seeking undervalued opportunities in this sector.

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

• Assess XPEL's past performance with our detailed historical performance reports.

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 $1.24 billion.

Operations: Hovnanian Enterprises generates revenue primarily from its homebuilding segments, with the West region contributing $1.35 billion, the Northeast $935.87 million, and the Southeast $480.25 million. Additionally, its financial services segment adds $66.16 million to the total revenue stream.

Hovnanian Enterprises, a construction firm with high-quality earnings, has seen its earnings grow by 20.3% over the past year, outperforming the Consumer Durables industry. The company's interest payments are well covered by EBIT at 6.5x coverage. Despite having a high net debt to equity ratio of 141.9%, Hovnanian's shareholder equity has improved from negative five years ago to positive now. Recently added to multiple Russell and S&P indices, Hovnanian repurchased 655,471 shares for US$36.82 million since September 2022.

• Dive into the specifics of Hovnanian Enterprises here with our thorough 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 $1.94 billion.

Operations: The company generates revenue primarily from its Metal Processors and Fabrication segment, amounting to $3.43 billion.

Worthington Steel, a small-cap player in the metals industry, has shown promising growth. Earnings surged by 77.7% over the past year, outpacing the industry average of -26.6%. The company’s net debt to equity ratio stands at a satisfactory 9.6%, and it trades at 28.8% below estimated fair value. Recent results show annual sales of US$3.43 billion with net income rising to US$154.7 million compared to US$87.1 million last year, despite a slight dip in quarterly earnings per share from continuing operations (US$1.06 vs US$1.37).

• Click to explore a detailed breakdown of our findings in Worthington Steel's health report.

• Learn about Worthington Steel's historical performance.

Turning Ideas Into Actions

• Unlock our comprehensive list of 221 US Undiscovered Gems With Strong Fundamentals by clicking here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Curious About Other Options?

• 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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