Undiscovered Gems in United States for January 2025

The United States market has shown impressive momentum, rising 3.8% in the past week and up 24% over the last year, with earnings expected to grow by 15% annually. In such a dynamic environment, identifying stocks with strong fundamentals and growth potential can be key to uncovering undiscovered gems that may offer promising opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Eagle Financial Services	170.75%	12.30%	1.92%	★★★★★★
Morris State Bancshares	10.20%	-0.28%	6.97%	★★★★★★
Wilson Bank Holding	NA	7.87%	8.22%	★★★★★★
Omega Flex	NA	0.39%	2.57%	★★★★★★
Franklin Financial Services	173.21%	5.55%	-1.86%	★★★★★★
First Northern Community Bancorp	NA	7.65%	11.17%	★★★★★★
Teekay	NA	-3.71%	60.91%	★★★★★★
ASA Gold and Precious Metals	NA	7.11%	-35.88%	★★★★★☆
FRMO	0.08%	38.78%	45.85%	★★★★★☆
Pure Cycle	5.15%	-2.61%	-6.23%	★★★★★☆

Click here to see the full list of 256 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

Merchants Bancorp (NasdaqCM:MBIN)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Merchants Bancorp is a diversified bank holding company in the United States with a market cap of approximately $1.77 billion.

Operations: Merchants Bancorp generates revenue primarily from its Banking segment ($320.88 million), followed by Multi-Family Mortgage Banking ($154.17 million) and Mortgage Warehousing ($129.91 million).

Merchants Bancorp, with assets totaling $18.7 billion and equity of $1.9 billion, is flying under the radar despite its strong performance metrics. The bank's earnings have surged by 19% over the past year, outpacing industry growth of 14%. Total deposits stand at $12.9 billion against loans of $10.3 billion, though it faces a challenge with insufficient bad loan allowances at 2% of total loans. Recently, Merchants announced a preferred stock redemption and dividend adjustments on Series B shares due to rate changes, highlighting its proactive financial management amidst evolving market conditions.

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

• Learn about Merchants Bancorp's historical performance.

National Energy Services Reunited (NasdaqCM:NESR)

Simply Wall St Value Rating: ★★★★☆☆

Overview: National Energy Services Reunited Corp. offers oilfield services in the Middle East and North Africa region, with a market capitalization of $886.70 million.

Operations: NESR generates revenue primarily from Production Services, contributing $853.86 million, and Drilling and Evaluation Services, which add $411.68 million.

National Energy Services Reunited is making waves with significant earnings growth of 22,460% over the past year, far outpacing the industry average of 30.5%. This up-and-comer has secured contracts worth over $200 million in Saudi Arabia, Oman, and Kuwait for its drilling technology. Despite an increase in debt to equity ratio from 42.4% to 47.1% over five years, its net debt to equity remains satisfactory at 33.6%. With a fair value estimate showing it trading at a discount of 62.4%, NESR's financials reflect both potential and challenges within the energy services sector.

• Click here and access our complete health analysis report to understand the dynamics of National Energy Services Reunited.

• Examine National Energy Services Reunited's past performance report to understand how it has performed in the past.

La-Z-Boy (NYSE:LZB)

Simply Wall St Value Rating: ★★★★★★

Overview: La-Z-Boy Incorporated is involved in the manufacturing, marketing, importing, exporting, distributing, and retailing of upholstery furniture products across the United States, Canada, and international markets with a market capitalization of approximately $1.86 billion.

Operations: La-Z-Boy generates revenue primarily through its Retail and Wholesale segments, with Retail contributing approximately $856.51 million and Wholesale about $1.46 billion. The company experiences a deduction in revenue due to inter-segment eliminations amounting to roughly $407.91 million, while the Corporate segment adds around $158.27 million.

La-Z-Boy, a prominent player in the furniture industry, has been making strategic moves to bolster its market presence. The company is debt-free and trades at 32.9% below estimated fair value, indicating potential undervaluation. Recent earnings growth of 2.4% surpassed the Consumer Durables industry's 1.8%, showcasing resilience despite sector challenges like high mortgage rates affecting demand. With a net profit margin projected to rise from 6% to 6.8%, La-Z-Boy's focus on expanding its retail footprint and enhancing brand awareness through campaigns such as "Long Live the Lazy" could drive future growth, though current share price suggests modest upside potential.

• La-Z-Boy is expanding through acquisitions and partnerships to boost market presence. Click here to explore the full narrative on La-Z-Boy's strategic growth initiatives.

Turning Ideas Into Actions

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Want To Explore Some Alternatives?

• 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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