Undiscovered Gems in United States To Watch This August 2024

Over the last 7 days, the market has dropped 2.3%, but it remains up 17% over the past year with earnings forecasted to grow by 15% annually. In this dynamic environment, identifying stocks with strong growth potential and solid fundamentals can be especially rewarding; here are three undiscovered gems in the United States to watch this August 2024.

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%	★★★★★★
Mission Bancorp	25.37%	16.23%	20.16%	★★★★★★
Gravity	NA	15.31%	24.42%	★★★★★★
Teekay	NA	-6.48%	55.79%	★★★★★★
Omega Flex	NA	1.31%	3.88%	★★★★★★
United States Lime & Minerals	NA	15.33%	27.79%	★★★★★★
First Northern Community Bancorp	NA	7.12%	10.04%	★★★★★★
CSP	2.17%	-5.57%	73.73%	★★★★★☆
FRMO	0.19%	6.49%	15.82%	★★★★☆☆

Click here to see the full list of 218 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

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 $440.21 million.

Operations: Sezzle Inc. generates revenue primarily through merchant fees and consumer fees associated with its buy-now-pay-later services. The company incurs costs related to transaction processing, customer acquisition, and technology infrastructure. Its net profit margin has shown variability across reporting periods.

Sezzle has seen remarkable earnings growth of 434.8% over the past year, significantly outpacing the Diversified Financial industry’s 8.6%. The company's debt to equity ratio impressively dropped from 1676.6% to 137% over five years, while its net debt to equity ratio stands at a satisfactory 21.6%. Trading at a P/E ratio of 14.2x, Sezzle is valued attractively compared to the US market average of 17x.

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

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

XPEL (NasdaqCM:XPEL)

Simply Wall St Value Rating: ★★★★★☆

Overview: XPEL, Inc. is a company that specializes in selling, distributing, and installing protective films and coatings globally with a market cap of $877.38 million (USD).

Operations: XPEL generates revenue primarily from its Auto Parts & Accessories segment, which brought in $400.56 million (USD).

XPEL, a player in the auto components industry, exhibits strong financial health with a net debt to equity ratio of 8.4%, considered satisfactory. The company's earnings grew by 6.7% over the past year, outpacing the industry's growth rate of 4.4%. XPEL's interest payments are well covered by EBIT at 51.1x coverage, indicating robust profitability and financial management. However, recent legal issues could impact investor sentiment as a class action lawsuit alleges misleading statements about market share penetration and revenue growth prospects for 2023 and 2024.

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

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

Cricut (NasdaqGS:CRCT)

Simply Wall St Value Rating: ★★★★★★

Overview: Cricut, Inc. designs, markets, and distributes a creativity platform that allows users to transform ideas into professional-looking handmade goods, with a market cap of $1.37 billion.

Operations: Cricut generates revenue through the sale of its creativity platform, which includes hardware, accessories, and digital content. The company's net profit margin stands at 7.5%.

Cricut, Inc. has seen a notable shift in its financial landscape, with earnings growing by 40.2% over the past year despite a 22.7% decline per year over the last five years. Recently added to multiple Russell indexes, Cricut's net income for Q2 2024 was US$19.77 million compared to US$16.02 million last year, and revenue hit US$335.34 million for the first half of 2024 versus US$358.99 million previously. The company is debt-free and trades at nearly half its estimated fair value but has experienced significant insider selling recently.

• Dive into the specifics of Cricut here with our thorough health report.

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

Make It Happen

• Explore the 218 names from our US Undiscovered Gems With Strong Fundamentals screener 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.

Looking For Alternative Opportunities?

• 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com