Discovering Three Undiscovered Gems in the United States

Over the last 7 days, the market has risen 1.6%, driven by gains of 4.2% in the Information Technology sector. The market is up 22% over the last 12 months, with earnings forecast to grow by 15% annually. In this thriving environment, identifying stocks with strong growth potential and solid fundamentals can be particularly rewarding for investors looking to uncover hidden opportunities.

Top 5 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%	★★★★★★
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%	★★★★★★
Dril-Quip	NA	1.06%	19.11%	★★★★★★
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%	★★★★★☆
QDM International	36.42%	107.08%	78.76%	★★★★★☆
FRMO	0.17%	12.99%	23.62%	★★★★☆☆

Click here to see the full list of 210 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Limbach Holdings (NasdaqCM:LMB)

Simply Wall St Value Rating: ★★★★★★

Overview: Limbach Holdings, Inc. operates as a building systems solution company in the United States with a market cap of $772.77 million.

Operations: Limbach generates revenue through two primary segments: Owner Direct Relationships (ODR) contributing $301.47 million, and General Contractor Relationships (GCR) contributing $210.20 million.

Limbach Holdings has demonstrated robust earnings growth, with a 64.9% increase over the past year, surpassing the Construction industry's 23.5%. The company reported second-quarter sales of US$122.24 million and net income of US$5.96 million, showing improvement from last year's figures. Limbach's debt to equity ratio has significantly decreased from 88% to 7.2% over five years, indicating better financial health. Additionally, recent guidance projects annual revenue between US$515 million and US$535 million for 2024.

• Click to explore a detailed breakdown of our findings in Limbach Holdings' health report.

• Gain insights into Limbach Holdings' historical performance by reviewing our past performance 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 $784.14 million.

Operations: Sezzle generates revenue primarily through lending to end-customers, amounting to $192.69 million.

Sezzle has demonstrated remarkable earnings growth of 434.8% over the past year, significantly outpacing the Diversified Financial industry’s 10.5%. The company's debt to equity ratio has improved from a staggering 1676.6% to a more manageable 137% over five years, indicating better financial health. Sezzle's interest payments are well covered by EBIT at 4.9 times, and it boasts high-quality non-cash earnings. Recent strategic partnerships and product expansions further bolster its growth prospects in the BNPL market.

• Delve into the full analysis health report here for a deeper understanding of Sezzle.

• Explore historical data to track Sezzle's performance over time in our Past section.

Teekay (NYSE:TK)

Simply Wall St Value Rating: ★★★★★★

Overview: Teekay Corporation provides international crude oil and marine transportation services worldwide and has a market cap of $767.75 million.

Operations: Teekay generates revenue primarily through its Teekay Tankers segment, which brought in $1.23 billion. The company also records a segment adjustment of $107.98 million.

Teekay, trading significantly below its estimated fair value, has seen a substantial improvement in its financial health. The company is now debt-free, a notable shift from five years ago when the debt to equity ratio stood at 111.1%. Despite recent negative earnings growth of 7%, Teekay's performance still outpaces the Oil and Gas industry average of 32.9%. Recent corporate actions include a share repurchase program worth $40 million and appointing Brody Speers as Chief Financial Officer in August 2024.

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

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

Where To Now?

• Get an in-depth perspective on all 210 US Undiscovered Gems With Strong Fundamentals by using our screener here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Discover a world of investment opportunities with Simply Wall St's free app and access unparalleled stock analysis across all markets.

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.

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