Exploring Undiscovered Gems in the United States January 2025

The United States market has shown impressive resilience, climbing 1.3% in the last seven days and increasing by 24% over the past year, with earnings projected to grow by 15% annually. In this thriving environment, a good stock often combines strong fundamentals with growth potential that hasn't yet been fully recognized by the broader market.

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%	★★★★★★
Franklin Financial Services	173.21%	5.55%	-1.86%	★★★★★★
Wilson Bank Holding	NA	7.87%	8.22%	★★★★★★
Omega Flex	NA	0.39%	2.57%	★★★★★★
Parker Drilling	46.05%	0.86%	52.25%	★★★★★★
Teekay	NA	-3.71%	60.91%	★★★★★★
First Northern Community Bancorp	NA	7.65%	11.17%	★★★★★★
ASA Gold and Precious Metals	NA	7.11%	-35.88%	★★★★★☆
Pure Cycle	5.31%	-4.44%	-5.74%	★★★★★☆
FRMO	0.13%	19.43%	29.70%	★★★★☆☆

Click here to see the full list of 248 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

International General Insurance Holdings (NasdaqCM:IGIC)

Simply Wall St Value Rating: ★★★★★☆

Overview: International General Insurance Holdings Ltd. is a global provider of specialty insurance and reinsurance products, with a market capitalization of approximately $1.06 billion.

Operations: IGIC generates revenue primarily from its Specialty Short-Tail, Specialty Long-Tail, and Reinsurance segments, with the highest contribution of $256.19 million from Specialty Short-Tail.

International General Insurance Holdings (IGI) stands out with its strategic expansion into markets like Malta, Bermuda, and Oslo, aiming to diversify operations and bolster revenue. The company's earnings have grown impressively at 37% annually over the last five years. Despite a slight dilution of shareholders recently, IGI maintains high-quality earnings and trades at a notable value compared to industry peers. In the third quarter of 2024, IGI reported revenues of US$138 million and net income of US$34.5 million—both significant increases from the previous year. Additionally, IGI repurchased shares worth US$5.8 million in late 2024 as part of its ongoing buyback program.

• International General Insurance Holdings is expanding into new markets to enhance revenue and improve margins. Click here to explore the full narrative on IGI's strategic growth initiatives.

Banco Latinoamericano de Comercio Exterior S. A (NYSE:BLX)

Simply Wall St Value Rating: ★★★★★☆

Overview: Banco Latinoamericano de Comercio Exterior S.A. (NYSE: BLX) is a financial institution that facilitates trade finance and related services in Latin America and the Caribbean, with a market cap of approximately $1.34 billion.

Operations: BLX generates revenue primarily from its Commercial segment, contributing $250.08 million, and the Treasury segment, which adds $29.70 million.

Banco Latinoamericano de Comercio Exterior, S.A. (Bladex) is a financial institution with $11.4 billion in assets and $1.3 billion in equity, emphasizing its compact market position. The bank shows a robust allowance for bad loans at 422%, paired with non-performing loans at an appropriate 0.2%. Bladex's earnings surged by 33% over the past year, surpassing the industry average of 14.6%, reflecting strong performance and high-quality earnings. With liabilities primarily funded through low-risk customer deposits (56%), it trades at a favorable price-to-earnings ratio of 6.6x compared to the broader U.S. market's 18x, indicating potential value for investors seeking stability amidst growth opportunities in Latin America and beyond.

• Bladex is enhancing revenue growth by digitalizing services and expanding in underrepresented markets. Click here to explore the full narrative on Bladex's strategic initiatives and market potential.

Metropolitan Bank Holding (NYSE:MCB)

Simply Wall St Value Rating: ★★★★★★

Overview: Metropolitan Bank Holding Corp. serves as the bank holding company for Metropolitan Commercial Bank, offering a variety of business, commercial, and retail banking products and services to small businesses, middle-market enterprises, public entities, and individuals in the New York metropolitan area with a market cap of $666.26 million.

Operations: Metropolitan Bank Holding Corp. generates revenue primarily from its banking segment, totaling $258.17 million. It focuses on providing financial services to a diverse clientele in the New York metropolitan area.

Metropolitan Bank Holding, with total assets of US$7.4 billion and equity of US$715.2 million, stands out for its robust financial health. The bank's allowance for bad loans is a solid 202%, while non-performing loans are at a low 0.5%, reflecting prudent risk management. Total deposits amount to US$6.3 billion against loans of US$5.8 billion, supported by primarily low-risk funding sources like customer deposits comprising 94% of liabilities. Despite recent insider selling and a dip in net income from the previous year, the bank trades significantly below estimated fair value and shows potential for future earnings growth driven by strategic initiatives in high-yield sectors.

• Metropolitan Bank Holding's digital transformation and strategic loan expansion aim to enhance growth and efficiency. Click here to explore the full narrative on Metropolitan Bank Holding.

Taking Advantage

• Embark on your investment journey to our 248 US Undiscovered Gems With Strong Fundamentals selection here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Elevate your portfolio with Simply Wall St, the ultimate app for investors seeking global market coverage.

Ready For A Different Approach?

• 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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