Undiscovered Gems in United States for September 2024

In the last week, the market has been flat, but it is up 23% over the past year with earnings forecast to grow by 15% annually. In this dynamic environment, finding undiscovered gems that offer strong growth potential can be a rewarding strategy for investors looking to capitalize on emerging opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Hamilton Beach Brands Holding	34.31%	1.65%	4.46%	★★★★★★
Morris State Bancshares	10.20%	-0.32%	6.73%	★★★★★★
Mission Bancorp	25.37%	16.23%	20.16%	★★★★★★
Teekay	NA	-6.48%	55.79%	★★★★★★
Omega Flex	NA	1.31%	3.88%	★★★★★★
First Northern Community Bancorp	NA	7.12%	10.04%	★★★★★★
Banco Latinoamericano de Comercio Exterior S. A	311.64%	21.07%	24.77%	★★★★★☆
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
QDM International	36.42%	107.08%	78.76%	★★★★★☆
FRMO	0.17%	12.99%	23.62%	★★★★☆☆

Click here to see the full list of 217 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Karooooo (NasdaqCM:KARO)

Simply Wall St Value Rating: ★★★★★★

Overview: Karooooo Ltd. offers a mobility software-as-a-service (SaaS) platform for connected vehicles across South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States with a market cap of $1.18 billion.

Operations: Karooooo Ltd. generates revenue primarily through its Cartrack segment (ZAR 3.74 billion) and Karooooo Logistics (ZAR 355.99 million).

Karooooo has shown impressive earnings growth of 33.5% over the past year, outpacing the software industry average of 23.2%. Its debt to equity ratio has improved significantly from 21.7% to 3% over five years, indicating strong financial health. The company repurchased 57,806 shares for $1.45 million this year and maintains a price-to-earnings ratio of 26.3x, below the industry average of 38.3x, suggesting it trades at a good value relative to peers.

• Unlock comprehensive insights into our analysis of Karooooo stock in this health report.

• Explore historical data to track Karooooo's performance over time in our Past section.

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 $762.86 million.

Operations: Sezzle generates revenue primarily from lending to end-customers, amounting to $192.69 million. The company's market cap stands at $762.86 million.

Sezzle has seen a remarkable earnings growth of 434.8% over the past year, outpacing the Diversified Financial industry’s 9.7%. The company's debt to equity ratio has significantly improved from 1676.6% to 137% in five years, reflecting better financial health. Despite high volatility in its share price recently, Sezzle's net debt to equity ratio stands at a satisfactory 21.6%, and its interest payments are well covered by EBIT at 4.9x coverage.

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

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

Photronics (NasdaqGS:PLAB)

Simply Wall St Value Rating: ★★★★★★

Overview: Photronics, Inc., along with its subsidiaries, manufactures and sells photomask products and services across the United States, Taiwan, China, Korea, Europe, and other international markets with a market cap of $1.64 billion.

Operations: Photronics generates revenue primarily from the manufacture and sale of photomask products, amounting to $871.79 million.

Photronics, Inc. is currently trading at 61.3% below its estimated fair value and has no debt compared to five years ago when its debt-to-equity ratio was 5.5%. The company's earnings growth of 19.8% over the past year outpaced the semiconductor industry, which saw a -7.2% decline. For Q3 2024, Photronics reported net income of US$34.39 million on sales of US$210.98 million, with basic EPS from continuing operations at US$0.56 up from US$0.44 last year.

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

• Understand Photronics' track record by examining our Past report.

Next Steps

• Dive into all 217 of the US Undiscovered Gems With Strong Fundamentals we have identified here.
• Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

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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