Three Undiscovered Gems In The United States To Watch

The market has climbed 1.8% in the last 7 days, with a gain of 3.7%. Over the past 12 months, the market is up 32%, and earnings are forecast to grow by 15% annually. In this favorable environment, identifying stocks with strong fundamentals and growth potential can yield significant rewards. Here are three undiscovered gems in the United States that stand out as promising opportunities to watch.

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%	★★★★★☆
Tiptree	68.59%	20.55%	20.06%	★★★★★☆
FRMO	0.17%	12.99%	23.62%	★★★★☆☆

Click here to see the full list of 208 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Centrus Energy (NYSEAM:LEU)

Simply Wall St Value Rating: ★★★★★☆

Overview: Centrus Energy Corp. supplies nuclear fuel components and services for the nuclear power industry in the United States, Belgium, Japan, and internationally, with a market cap of $863.49 million.

Operations: Centrus Energy generates revenue primarily from its Low-Enriched Uranium (LEU) segment, which brought in $320.80 million, and its Technical Solutions segment, which contributed $71.80 million.

Centrus Energy, trading at 66% below its estimated fair value, has shown significant improvement with positive shareholder equity compared to negative five years ago. The company reported Q2 2024 revenue of US$189 million and net income of US$30.6 million, up from US$98.4 million and US$12.7 million respectively a year ago. Despite recent insider selling and shareholder dilution over the past year, Centrus remains free cash flow positive and profitable with earnings growth of 164.9% last year surpassing the industry average decline of -32.9%.

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

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

Valhi (NYSE:VHI)

Simply Wall St Value Rating: ★★★★★☆

Overview: Valhi, Inc. operates in the chemicals, component products, and real estate management and development sectors across Europe, North America, the Asia Pacific, and internationally with a market cap of $834.98 million.

Operations: Valhi, Inc. generates revenue primarily from its chemicals segment ($1.78 billion), followed by component products ($157.40 million) and real estate management and development ($78.50 million).

Valhi has shown impressive earnings growth of 215.4% over the past year, significantly outperforming the Chemicals industry average. The company's net debt to equity ratio stands at a satisfactory 8.6%, and its interest payments are well covered by EBIT with a 4.7x coverage ratio. Despite a volatile share price in recent months, Valhi's high-quality earnings and reduced debt-to-equity ratio from 78% to 38.7% over five years highlight its financial resilience and potential for continued performance improvement.

• Navigate through the intricacies of Valhi with our comprehensive health report here.

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

X Financial (NYSE:XYF)

Simply Wall St Value Rating: ★★★★★★

Overview: X Financial (NYSE:XYF) offers personal finance services in the People's Republic of China with a market cap of $261.53 million.

Operations: X Financial generates revenue from personal finance services amounting to CN¥5170.09 million. The company has a market cap of $261.53 million.

X Financial has shown robust performance with earnings growing 15.6% over the past year, far outpacing the Consumer Finance industry’s -8.4%. The company reported second-quarter revenue of CNY 1.37 billion and net income of CNY 415 million, reflecting solid financial health. Over the last five years, its debt to equity ratio decreased from 10% to 7.1%, indicating prudent financial management. Trading at a significant discount, X Financial appears undervalued by about 83%.

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

• Learn about X Financial's historical performance.

Taking Advantage

• Discover the full array of 208 US Undiscovered Gems With Strong Fundamentals right 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.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

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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