Stock Analysis

Discovering Three Undiscovered Gems In The United States Market

NasdaqCM:XPEL
Source: Shutterstock

Over the last 7 days, the market has risen 2.9%. In the last year, the market has climbed 17%, and earnings are forecast to grow by 15% annually. In this thriving environment, identifying lesser-known stocks with strong potential can be particularly rewarding for investors seeking growth opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
Morris State Bancshares10.20%-0.32%6.73%★★★★★★
Jiayin GroupNA23.46%30.79%★★★★★★
Mission Bancorp25.37%16.23%20.16%★★★★★★
GravityNA15.31%24.42%★★★★★★
TeekayNA-6.48%55.79%★★★★★★
Omega FlexNA1.31%3.88%★★★★★★
First Northern Community BancorpNA7.12%10.04%★★★★★★
Valhi38.71%2.57%-19.76%★★★★★☆
CSP2.17%-5.57%73.73%★★★★★☆
FRMO0.19%6.49%15.82%★★★★☆☆

Click here to see the full list of 223 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Sezzle (NasdaqCM:SEZL)

Simply Wall St Value Rating: ★★★★★☆

Overview: Sezzle Inc. is a technology-enabled payments company operating mainly in the United States and Canada, with a market cap of $651.87 million.

Operations: The company's primary revenue stream is lending to end-customers, generating $192.69 million.

Sezzle, a rising player in the financial sector, has shown impressive growth with earnings surging by 434.8% over the past year. The company's net debt to equity ratio stands at a satisfactory 21.6%, and its interest payments are well covered by EBIT (4.9x). Recent partnerships, including one with the Minnesota Timberwolves and Heritage Grocers Group, bolster its market presence. Sezzle's price-to-earnings ratio of 15.8x is attractive compared to the US market average of 17.2x, indicating potential value for investors.

NasdaqCM:SEZL Earnings and Revenue Growth as at Aug 2024
NasdaqCM:SEZL Earnings and Revenue Growth as at Aug 2024

XPEL (NasdaqCM:XPEL)

Simply Wall St Value Rating: ★★★★★☆

Overview: XPEL, Inc. operates globally in the sale, distribution, and installation of protective films and coatings with a market cap of $1.23 billion.

Operations: XPEL generates revenue primarily from its Auto Parts & Accessories segment, totaling $408.24 million. The company focuses on protective films and coatings in this sector.

XPEL, Inc. has shown mixed performance recently. The company reported Q2 2024 revenue of US$109.92 million, up from US$102.24 million the previous year, while net income was slightly lower at US$15.03 million compared to US$15.74 million last year, reflecting a 3% decline in basic earnings per share to US$0.54 from US$0.57 previously. Despite its high-quality earnings and strong EBIT coverage (48x), XPEL faces legal challenges with a securities class action lawsuit filed against it in August 2024.

NasdaqCM:XPEL Earnings and Revenue Growth as at Aug 2024
NasdaqCM:XPEL Earnings and Revenue Growth as at Aug 2024

Capital City Bank Group (NasdaqGS:CCBG)

Simply Wall St Value Rating: ★★★★★★

Overview: Capital City Bank Group, Inc. is a financial holding company for Capital City Bank, offering various banking-related services to individual and corporate clients with a market cap of $545.52 million.

Operations: Capital City Bank Group's revenue from commercial banking stands at $0.24 million. The company operates as a financial holding entity for Capital City Bank, providing diverse banking services to both individual and corporate clients.

Capital City Bank Group, with total assets of $4.2B and equity of $461M, presents a compelling case. Total deposits stand at $3.6B while loans are at $2.7B, demonstrating solid financial health. The bank has a sufficient allowance for bad loans (0.2%), and 96% of its liabilities come from low-risk funding sources like customer deposits. Earnings growth over the past year was 8.5%, outpacing the industry average of -15%. Additionally, it repurchased 155,979 shares for $4.36M this year.

NasdaqGS:CCBG Debt to Equity as at Aug 2024
NasdaqGS:CCBG Debt to Equity as at Aug 2024

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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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