Undiscovered Gems in the United States for September 2024

The market has climbed 4.2% in the last 7 days and is up 24% over the past 12 months, with earnings expected to grow by 15% per annum over the next few years. In such a thriving environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding for investors seeking undiscovered gems.

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%	★★★★★★
Jiayin Group	NA	27.99%	32.20%	★★★★★★
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%	★★★★★★
Banco Latinoamericano de Comercio Exterior S. A	311.64%	21.07%	24.77%	★★★★★☆
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
Innovex International	12.24%	18.91%	15.98%	★★★★★☆
FRMO	0.17%	12.99%	23.62%	★★★★☆☆

Click here to see the full list of 209 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Cricut (NasdaqGS:CRCT)

Simply Wall St Value Rating: ★★★★★★

Overview: Cricut, Inc. designs, markets, and distributes a creativity platform that allows users to create professional-looking handmade goods, with a market cap of $1.31 billion.

Operations: Cricut generates revenue primarily through the sale of its creativity platform and related products. The company's net profit margin is 8.5%.

Cricut, with a market cap under US$1 billion, has shown impressive earnings growth of 40.2% over the past year, outpacing the Consumer Durables industry. Despite a 22.7% annual decline in earnings over five years, it remains debt-free and trades at 47.7% below its estimated fair value. Recent buybacks saw the company repurchase shares worth US$8.86 million between May and June 2024, indicating confidence in its future prospects despite significant insider selling recently.

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

• Learn about Cricut's historical performance.

Benchmark Electronics (NYSE:BHE)

Simply Wall St Value Rating: ★★★★★☆

Overview: Benchmark Electronics, Inc., together with its subsidiaries, offers product design, engineering services, technology solutions, and manufacturing services in the Americas, Asia, and Europe and has a market cap of $1.53 billion.

Operations: Benchmark Electronics generates revenue from three primary regions: the Americas ($1.53 billion), Asia ($1.02 billion), and Europe ($313.74 million).

Benchmark Electronics, a small-cap company, has shown resilience with earnings growth of 1.6% over the past year, outpacing the Electronic industry’s -9.3%. The firm reported US$665.9 million in sales for Q2 2024 and net income of US$15.53 million, up from US$13.99 million last year. Despite increasing its debt to equity ratio from 14% to 26.4% over five years, it maintains more cash than total debt and covers interest payments well with EBIT (5.3x coverage).

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

• Explore historical data to track Benchmark Electronics' performance over time in our Past section.

Hovnanian Enterprises (NYSE:HOV)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Hovnanian Enterprises, Inc., with a market cap of approximately $1.31 billion, designs, constructs, markets, and sells residential homes in the United States through its subsidiaries.

Operations: Hovnanian Enterprises generates revenue primarily from its homebuilding segments, with the West region contributing $1.37 billion, the Northeast $989.39 million, and the Southeast $474.97 million. Additionally, it earns $70.40 million from financial services.

Hovnanian Enterprises has shown remarkable earnings growth of 51.3% over the past year, significantly outpacing the Consumer Durables industry at -2.1%. The company’s price-to-earnings ratio stands at 5.9x, well below the US market average of 18x, indicating good value. Despite a high net debt to equity ratio of 145.9%, interest payments are well covered by EBIT at 7.6x coverage. Recently added to several Russell indexes, Hovnanian repurchased 82,753 shares for $11.49 million from May to July 2024 and raised its full-year revenue guidance to between $2.90 billion and $3.05 billion with expected EPS between $29 and $31.

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

• Gain insights into Hovnanian Enterprises' past trends and performance with our Past report.

Key Takeaways

• Dive into all 209 of the US Undiscovered Gems With Strong Fundamentals we have identified here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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Ready For A Different Approach?

• 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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