Undiscovered Gems in the United States for October 2024

Over the last 7 days, the United States market has risen by 1.1%, contributing to a remarkable 36% climb over the past year, with earnings forecasted to grow by 15% annually. In such a dynamic environment, identifying stocks that combine strong fundamentals with growth potential can uncover promising opportunities for investors seeking undiscovered gems.

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%	-0.28%	6.97%	★★★★★★
River Financial	122.41%	16.43%	18.50%	★★★★★★
Mission Bancorp	25.37%	16.23%	20.16%	★★★★★★
Teekay	NA	-6.48%	55.79%	★★★★★★
First Northern Community Bancorp	NA	7.12%	10.04%	★★★★★★
Omega Flex	NA	1.31%	3.88%	★★★★★★
Banco Latinoamericano de Comercio Exterior S. A	311.64%	21.07%	24.77%	★★★★★☆
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
Chain Bridge Bancorp	10.64%	41.34%	18.53%	★★★★☆☆
FRMO	0.13%	19.43%	29.70%	★★★★☆☆

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

Let's uncover some gems from our specialized 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 $1.14 billion.

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

Sezzle, a nimble player in the payments sector, has seen its earnings soar by 434.8% over the past year, outpacing the Diversified Financial industry’s modest 12.5% rise. The company's net debt to equity ratio stands at a satisfactory 21.6%, reflecting prudent financial management as it reduced from a staggering 1676.6% five years ago to just 137%. Despite significant insider selling recently and high share price volatility, Sezzle's strategic partnership with WebBank and innovative product offerings like Sezzle Anywhere are driving growth potential. However, reliance on non-repeatable tax benefits and aggressive expansion spending might affect future profitability projections.

• Sezzle's innovative strategies and high-margin services aim to boost growth and profitability. Click here to explore Sezzle's growth narrative and strategic insights.

Centrus Energy (NYSEAM:LEU)

Simply Wall St Value Rating: ★★★★★☆

Overview: Centrus Energy Corp. is a company that provides nuclear fuel components and services to the nuclear power industry globally, with a market cap of approximately $1.26 billion.

Operations: Centrus Energy generates revenue primarily from its Low-Enriched Uranium (LEU) segment, contributing $320.80 million, and Technical Solutions, adding $71.80 million. The company's market cap is approximately $1.26 billion.

Centrus Energy, a relatively small player in the nuclear fuel industry, has shown impressive financial performance recently. The company's earnings grew by 164.9% over the past year, outpacing the broader oil and gas sector's downturn of -31.9%. Trading at 51.7% below its estimated fair value suggests potential for investors seeking undervalued opportunities. Despite significant insider selling in recent months, Centrus maintains high-quality earnings with interest payments well-covered by profits. Recent board appointments could bring strategic insights to enhance growth prospects further, while their revenue surged to US$189 million in Q2 2024 from US$98 million a year prior.

• Get an in-depth perspective on Centrus Energy's performance by reading our health report here.

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

Worthington Steel (NYSE:WS)

Simply Wall St Value Rating: ★★★★★☆

Overview: Worthington Steel, Inc. operates as a steel processor in North America with a market cap of $1.75 billion.

Operations: The primary revenue stream for Worthington Steel comes from its Metal Processors and Fabrication segment, generating $3.36 billion.

Worthington Steel, a promising player in the industry, has shown impressive earnings growth of 7.9% over the past year, outpacing the broader Metals and Mining sector's -23%. The company's earnings are considered high quality, with interest payments comfortably covered by EBIT at 22.7 times. Trading at 31.6% below its estimated fair value suggests potential upside for investors. Despite a dip in sales to US$834 million from US$905.8 million and net income to US$28.4 million from US$58.5 million year-over-year, Worthington remains profitable with satisfactory net debt to equity ratio of 7.5%.

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

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

Taking Advantage

• Delve into our full catalog of 221 US Undiscovered Gems With Strong Fundamentals here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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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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