Uncovering Three Undiscovered Gems in the United States

In the last week, the market has been flat, but it is up 25% over the past year with earnings forecast to grow by 15% annually. In this promising environment, identifying stocks with strong fundamentals and growth potential can lead to uncovering true gems in the United States market.

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%	-0.32%	6.73%	★★★★★★
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%	★★★★★★
First National Bank Alaska	221.06%	2.98%	1.82%	★★★★★☆
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
QDM International	36.42%	107.08%	78.76%	★★★★★☆
FRMO	0.17%	12.99%	23.62%	★★★★☆☆
AMTD Digital	26.12%	9.22%	33.48%	★★★★☆☆

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

Let's uncover some gems from our specialized screener.

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 $1.25 billion.

Operations: XPEL generates revenue primarily from its Auto Parts & Accessories segment, which accounted for $408.24 million. The company has a market cap of $1.25 billion.

XPEL, Inc. has been navigating a mixed landscape recently, with revenue for Q2 2024 at US$109.92 million and net income of US$15.03 million, slightly down from the previous year’s US$15.74 million. The company’s debt to equity ratio rose from 4.6 to 5.6 over five years, yet it remains well-covered by EBIT at 48x interest payments. Despite a volatile share price and legal challenges alleging misleading statements about market growth, XPEL trades at a notable discount of 27% below fair value estimates and boasts high-quality earnings with positive free cash flow.

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

• Review our historical performance report to gain insights into XPEL's's past performance.

Hovnanian Enterprises (NYSE:HOV)

Simply Wall St Value Rating: ★★★★★☆

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

Operations: Hovnanian Enterprises generates revenue primarily through its residential home design, construction, and sales operations in the United States. The company's financial services segment contributes $70.40 million to its overall revenue.

Hovnanian Enterprises, a homebuilder in the U.S., has shown impressive earnings growth of 49.2% over the past year, significantly outpacing the Consumer Durables industry’s -2.1%. The company reported third-quarter revenue of US$722.7 million, up from US$649.96 million a year ago, and net income of US$72.92 million compared to US$55.76 million previously. Trading at 73.6% below its estimated fair value, Hovnanian's EBIT covers interest payments 8 times over despite its high net debt to equity ratio of 126.8%.

• Unlock comprehensive insights into our analysis of Hovnanian Enterprises stock in this health report.

• Examine Hovnanian Enterprises' past performance report to understand how it has performed in the past.

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, Inc. 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).

Valhi has shown remarkable performance with earnings growth of 215.4% over the past year, outpacing the Chemicals industry’s -4.8%. The company’s net debt to equity ratio stands at a satisfactory 8.6%, down from 78% five years ago. Valhi's interest payments are well covered by EBIT at 4.7x coverage, and it reported a net income of US$19.9 million for Q2 2024 compared to a net loss of US$3.2 million last year, reflecting its high-quality earnings and improved financial health.

• Click here to discover the nuances of Valhi with our detailed analytical health report.

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

Turning Ideas Into Actions

• Unlock more gems! Our US Undiscovered Gems With Strong Fundamentals screener has unearthed 214 more companies for you to explore.Click here to unveil our expertly curated list of 217 US Undiscovered Gems With Strong Fundamentals.
• Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com