Three Undiscovered Gems in the United States with Strong Potential

The market has climbed by 2.6% over the past week, with every sector up, and is up 17% over the last 12 months. In this thriving environment where earnings are forecast to grow by 15% annually, identifying stocks with strong fundamentals and growth potential can be particularly rewarding.

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%	★★★★★★
QDM International	NA	123.47%	83.88%	★★★★★★
Gravity	NA	15.31%	24.42%	★★★★★★
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%	★★★★★★
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
CSP	2.17%	-5.57%	73.73%	★★★★★☆
FRMO	0.19%	6.49%	15.82%	★★★★☆☆

Click here to see the full list of 224 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

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 $651.87 million.

Operations: Sezzle generates revenue primarily through lending to end-customers, amounting to $192.69 million. The company's market cap stands at $651.87 million.

Sezzle has shown impressive growth, with earnings surging 434.8% over the past year, outpacing the Diversified Financial industry’s 12.9%. The company’s net debt to equity ratio stands at a satisfactory 21.6%, and interest payments are well covered by EBIT at 4.9x. Despite significant insider selling recently, Sezzle's price-to-earnings ratio of 15.5x remains below the US market average of 17.2x, suggesting potential value for investors.

• 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. specializes in the sale, distribution, and installation of protective films and coatings globally with a market cap of $1.23 billion.

Operations: The company generates revenue primarily from the Auto Parts & Accessories segment, which brought in $408.24 million. The financial performance reflects a significant focus on this segment for its income generation.

XPEL, known for its paint protection films, has more cash than total debt and a debt to equity ratio that rose from 4.6% to 5.6% over five years. Despite high-quality earnings and interest payments covered 48 times by EBIT, the company faces volatility with a negative earnings growth of -3.1% compared to the industry's -0.01%. Recently reported Q2 revenue was US$109.92 million with net income at US$15.03 million, down from US$15.74 million last year amidst ongoing legal issues regarding misleading market statements about revenue growth prospects in 2023 and 2024.

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

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

Cricut (NasdaqGS:CRCT)

Simply Wall St Value Rating: ★★★★★★

Overview: Cricut, Inc. designs, markets, and distributes a creativity platform that enables users to create professional-looking handmade goods and has a market cap of approximately $1.38 billion.

Operations: Cricut generates revenue through the sale of its creativity platform products. The company's market cap stands at approximately $1.38 billion.

Cricut, Inc. has demonstrated notable financial performance despite recent challenges. Over the past year, earnings surged by 40.2%, significantly outpacing the Consumer Durables industry growth of 0.5%. The company is debt-free now, a marked improvement from five years ago when its debt to equity ratio was 49.9%. For Q2 2024, Cricut reported US$167.95 million in revenue and US$19.77 million in net income, with basic earnings per share at US$0.09 compared to US$0.07 a year ago.

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

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

Taking Advantage

• Navigate through the entire inventory of 224 US Undiscovered Gems With Strong Fundamentals here.
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Ready To Venture Into Other Investment Styles?

• 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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