Three Undiscovered Gems In The United States To Enhance Your Portfolio

Over the last 7 days, the market has risen 3.6%, and over the past 12 months, it is up 20%, with earnings forecast to grow by 15% annually. In this thriving environment, identifying lesser-known stocks with strong fundamentals can be a strategic move to enhance your portfolio.

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, the company generates revenue primarily from its Internet Software & Services segment, amounting to $370.55 million.

BitFuFu's price-to-earnings ratio (18.9x) is notably below the Software industry average of 34.3x, indicating potential undervaluation. The company's interest payments are well covered by EBIT at 4.5 times, and its net debt to equity ratio stands at a satisfactory 13.1%. Recent board changes include the appointment of Huaiyu Liu and Joshua Kewei Cui as independent directors, adding significant financial expertise to the leadership team. Earnings growth over the past year has been impressive at 2285%, far outpacing industry averages.

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

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

Sezzle (NasdaqCM:SEZL)

Simply Wall St Value Rating: ★★★★★☆

Overview: Sezzle Inc. is a technology-enabled payments company operating primarily in the United States and Canada, with a market cap of $662.79 million.

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

Sezzle's recent performance showcases impressive growth, with earnings surging 434.8% over the past year, significantly outpacing the Diversified Financial industry’s 12.9%. The company’s debt to equity ratio has improved dramatically from 1676.6% to 137% in five years, highlighting effective financial management. Additionally, Sezzle's interest payments are well-covered by EBIT (4.9x coverage), and its P/E ratio of 16.9x is slightly below the US market average of 17.1x, suggesting it may be undervalued.

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

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

XPEL (NasdaqCM:XPEL)

Simply Wall St Value Rating: ★★★★★☆

Overview: XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide with a market cap of $1.21 billion.

Operations: The company generates revenue primarily from its Auto Parts & Accessories segment, which brought in $408.24 million. It has a market cap of approximately $1.21 billion.

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 boasts high-quality earnings and strong EBIT coverage of interest payments at 48.1x. Recent legal issues have surfaced with class action lawsuits alleging misleading statements by the company. Revenue for Q2 2024 was US$109.92 million with net income of US$15.03 million, reflecting slight dips from last year’s figures.

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

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

Next Steps

• Click through to start exploring the rest of the 218 US Undiscovered Gems With Strong Fundamentals now.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Interested In Other Possibilities?

• 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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