Stock Analysis

Three Undiscovered Gems In The United States With Strong Fundamentals

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Over the last 7 days, the market has remained flat, but it is up 32% over the past year with earnings forecasted to grow by 15% annually. In this context, identifying stocks with strong fundamentals can be crucial for investors looking to capitalize on stable yet promising opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

NameDebt To EquityRevenue GrowthEarnings GrowthHealth Rating
National Presto IndustriesNA1.58%-11.29%★★★★★★
Morris State Bancshares10.20%-0.28%6.97%★★★★★★
TeekayNA-6.48%55.79%★★★★★★
Mission Bancorp25.37%16.23%20.16%★★★★★★
Omega FlexNA1.31%3.88%★★★★★★
First Northern Community BancorpNA7.12%10.04%★★★★★★
Oil-Dri Corporation of America20.63%10.47%20.87%★★★★★☆
Banco Latinoamericano de Comercio Exterior S. A311.64%21.07%24.77%★★★★★☆
Valhi38.71%2.57%-19.76%★★★★★☆
FRMO0.17%12.99%23.62%★★★★☆☆

Click here to see the full list of 207 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.

SBC Medical Group Holdings (NasdaqGM:SBC)

Simply Wall St Value Rating: ★★★★★☆

Overview: SBC Medical Group Holdings Incorporated offers management services to cosmetic treatment centers in Japan, Vietnam, and internationally, with a market cap of $971.57 million.

Operations: SBC Medical Group Holdings generates revenue primarily from healthcare facilities and services, totaling $217.54 million. The company operates within the cosmetic treatment sector across Japan, Vietnam, and other international markets.

SBC Medical Group Holdings has seen impressive earnings growth of 164% over the past year, significantly outpacing the Healthcare industry’s 8%. Trading at 91.4% below its estimated fair value, SBC seems undervalued. Despite high volatility in its share price recently, it maintains a strong financial position with more cash than total debt and positive free cash flow of US$64.23 million as of June 2024. The company was recently added to the NASDAQ Composite Index, indicating growing recognition in the market.

NasdaqGM:SBC Earnings and Revenue Growth as at Sep 2024

AMTD Digital (NYSE:HKD)

Simply Wall St Value Rating: ★★★★☆☆

Overview: AMTD Digital Inc., with a market cap of $685.95 million, provides digital financial and non-financial solutions, digital media and marketing services, as well as hotel operations and VIP services in Asia through its subsidiaries.

Operations: AMTD Digital generates revenue primarily from digital financial and non-financial solutions, digital media and marketing services, along with hotel operations and VIP services. The company has a market cap of $685.95 million.

AMTD Digital, a smaller player in the software industry, has shown impressive earnings growth of 88.6% over the past year, significantly outpacing the industry's 23.6%. The company’s price-to-earnings ratio stands at an attractive 11x compared to the US market average of 18.3x. Notably, a one-off gain of US$46.1M impacted its financial results for the past year ending October 31, 2023. Additionally, AMTD Digital holds more cash than its total debt and earns enough interest to cover payments comfortably.

NYSE:HKD Earnings and Revenue Growth as at Sep 2024

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 $953.53 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 seen its debt to equity ratio improve significantly from 78% to 38.7% over the past five years, indicating better financial health. The company achieved a remarkable earnings growth of 215.4% last year, outpacing the Chemicals industry average of -4.8%. Despite a volatile share price recently, Valhi reported net income of US$19.9 million for Q2 2024 compared to a net loss of US$3.2 million in Q2 2023, highlighting its strong recovery and profitability potential

NYSE:VHI Earnings and Revenue Growth as at Sep 2024

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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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