Discovering Hidden Stock Gems In The United States September 2024

In the last week, the United States market has been flat, but it is up 23% over the past year with earnings forecasted to grow by 15% annually. In such a dynamic environment, identifying hidden stock gems that have strong growth potential and solid fundamentals 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
Hamilton Beach Brands Holding	34.31%	1.65%	4.46%	★★★★★★
Morris State Bancshares	10.20%	-0.32%	6.73%	★★★★★★
National Presto Industries	NA	1.58%	-11.29%	★★★★★★
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%	★★★★★☆
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.

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

Karooooo (NasdaqCM:KARO)

Simply Wall St Value Rating: ★★★★★★

Overview: Karooooo Ltd. offers a mobility software-as-a-service (SaaS) platform for connected vehicles across South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States with a market cap of $1.18 billion.

Operations: Karooooo Ltd. generates revenue primarily from its Cartrack segment (ZAR 3.74 billion) and Karooooo Logistics segment (ZAR 355.99 million), with a total adjustment of ZAR 193.22 million across segments.

KARO's debt to equity ratio has improved significantly from 21.7% to 3% over the past five years, reflecting better financial health. The company reported a robust earnings growth of 33.5% last year, outpacing the Software industry’s average of 23.2%. Trading at a P/E ratio of 26.3x, it offers good value compared to peers with an industry average of 38.3x. Recent events include a special dividend payout and changes in auditors, indicating active financial management and governance adjustments.

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

• Understand Karooooo's track record by examining our Past report.

Sezzle (NasdaqCM:SEZL)

Simply Wall St Value Rating: ★★★★★☆

Overview: Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada, with a market cap of $762.86 million.

Operations: Sezzle generates revenue primarily through lending to end-customers, which amounted to $192.69 million. The company's market cap stands at $762.86 million.

Sezzle has demonstrated impressive earnings growth, with a 434.8% increase over the past year, significantly outperforming the Diversified Financial industry’s 9.7%. The company's net debt to equity ratio stands at a satisfactory 21.6%, and its interest payments are well covered by EBIT at 4.9x coverage. Recent developments include a strategic partnership with WebBank and an expanded multi-year agreement with the Minnesota Timberwolves, reflecting Sezzle's aggressive expansion and solid financial footing in the BNPL sector.

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

• Examine Sezzle's past performance report to understand how it has performed in the past.

Photronics (NasdaqGS:PLAB)

Simply Wall St Value Rating: ★★★★★★

Overview: Photronics, Inc., together with its subsidiaries, manufactures and sells photomask products and services globally, with a market cap of approximately $1.64 billion.

Operations: Photronics generates revenue primarily from the manufacture and sale of photomasks, totaling approximately $871.79 million. The company's market cap stands at about $1.64 billion.

Photronics, a semiconductor photomask manufacturer, reported Q3 2024 sales of US$211 million and net income of US$34.39 million, up from US$26.96 million the previous year. Basic earnings per share rose to US$0.56 from US$0.44 last year. The company is trading at 61% below its estimated fair value and has seen earnings grow by nearly 20% over the past year, outperforming the industry average of -7%. Photronics remains debt-free with high-quality earnings and positive free cash flow.

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

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

Make It Happen

• Get an in-depth perspective on all 217 US Undiscovered Gems With Strong Fundamentals by using our screener 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.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Want To Explore Some Alternatives?

• 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