Discovering Undiscovered Gems in the United States for August 2024

The market has climbed by 3.6% over the past week, with every sector up and the Information Technology sector leading the way. The market is up 20% over the last 12 months, and earnings are expected to grow by 15% per annum over the next few years. In this favorable environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding for investors seeking undiscovered gems in the United States.

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%	★★★★★★
Jiayin Group	NA	23.46%	30.79%	★★★★★★
QDM International	NA	123.47%	83.88%	★★★★★★
Teekay	NA	-6.48%	55.79%	★★★★★★
Mission Bancorp	25.37%	16.23%	20.16%	★★★★★★
Omega Flex	NA	1.31%	3.88%	★★★★★★
First Northern Community Bancorp	NA	7.12%	10.04%	★★★★★★
CSP	2.17%	-5.57%	73.73%	★★★★★☆
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
FRMO	0.19%	6.49%	15.82%	★★★★☆☆

Click here to see the full list of 221 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

BitFuFu (NasdaqCM:FUFU)

Simply Wall St Value Rating: ★★★★☆☆

Overview: BitFuFu Inc., with a market cap of $775.41 million, offers digital asset mining and cloud-mining services in Singapore.

Operations: With a market cap of $775.41 million, BitFuFu generates revenue primarily from its Internet Software & Services segment, amounting to $370.55 million.

BitFuFu, a promising player in the software industry, saw its earnings skyrocket by 2285.5% over the past year, far outpacing the industry's average growth of 23.3%. With a price-to-earnings ratio of 18.9x, it offers better value compared to the industry average of 34.3x. Despite high volatility in its share price recently and not being free cash flow positive, BitFuFu's net debt to equity ratio stands at a satisfactory 13.1%, with interest payments well covered by EBIT (4.5x coverage). Recent board changes include appointing Huaiyu Liu as an independent director and audit committee chairperson, bringing over two decades of finance experience to strengthen governance and strategic planning.

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

• Gain insights into BitFuFu's historical performance by reviewing our past performance report.

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 $662.79 million.

Operations: Sezzle generates revenue primarily through lending to end-customers, amounting to $192.69 million. The company's net profit margin is a key financial metric to consider.

Sezzle has made significant strides, reporting a 434.8% earnings growth over the past year and reducing its debt to equity ratio from 1676.6% to 137% in five years. The recent partnership with the Minnesota Timberwolves highlights their strategic marketing efforts, while their price-to-earnings ratio of 16.9x suggests good value compared to the US market average of 17.1x. Additionally, Sezzle's net income surged to $29.7 million in Q2 2024 from $1.14 million a year ago, showcasing robust financial health and growth potential

• Click to explore a detailed breakdown of our findings in Sezzle's health report.

• Assess Sezzle's past performance with our detailed historical performance reports.

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 approximately $1.21 billion.

Operations: XPEL generates revenue primarily from its Auto Parts & Accessories segment, which reported $408.24 million in sales.

XPEL, a player in the auto components sector, has seen its debt to equity ratio rise from 4.6% to 5.6% over five years. Despite this, it trades at nearly 30% below fair value and boasts high-quality earnings with EBIT covering interest payments by a factor of 48.1x. However, recent legal issues have surfaced with class action lawsuits alleging misleading statements about market share and revenue growth between late 2023 and mid-2024 impacting investor confidence.

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

• Learn about XPEL's historical performance.

Seize The Opportunity

• Unlock our comprehensive list of 221 US Undiscovered Gems With Strong Fundamentals by clicking here.
• Have a stake in these businesses? Integrate your holdings into Simply Wall St's portfolio for notifications and detailed stock reports.
• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Curious About Other Options?

• 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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