Discovering September 2024's Hidden Stock Gems

Over the last 7 days, the market has dropped 1.4%, yet it remains up 21% over the past year with earnings expected to grow by 15% per annum. In this dynamic environment, identifying stocks with strong growth potential and solid fundamentals can uncover hidden gems poised for future success.

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%	★★★★★★
Jiayin Group	NA	27.99%	32.20%	★★★★★★
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%	★★★★★★
Longduoduo	NA	69.14%	101.50%	★★★★★★
Banco Latinoamericano de Comercio Exterior S. A	311.64%	21.07%	24.77%	★★★★★☆
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
FRMO	0.17%	12.99%	23.62%	★★★★☆☆

Click here to see the full list of 219 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

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

Build-A-Bear Workshop (NYSE:BBW)

Simply Wall St Value Rating: ★★★★★★

Overview: Build-A-Bear Workshop, Inc. is a multi-channel retailer specializing in plush animals and related products with operations in the United States, Canada, the United Kingdom, Ireland, and internationally; it has a market cap of $452.61 million.

Operations: The company generates revenue primarily from net retail sales amounting to $451.93 million, commercial sales of $27.03 million, and international franchising contributing $4.42 million.

Build-A-Bear Workshop, trading at 52.8% below its estimated fair value, reported Q2 revenue of US$111.8 million and net income of US$8.78 million. Despite a slight earnings dip over the past year (-1.6%), it remains debt-free and has high-quality earnings with positive free cash flow (US$56.69 million as of July 2023). The company recently reaffirmed its full-year 2024 guidance and launched exclusive Hello Kitty® products, indicating steady growth prospects amid industry challenges.

• Get an in-depth perspective on Build-A-Bear Workshop's performance by reading our health report here.

• Evaluate Build-A-Bear Workshop's historical performance by accessing our past performance report.

Heritage Insurance Holdings (NYSE:HRTG)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products and has a market cap of approximately $473.14 million.

Operations: The company's primary revenue stream is derived from its property and casualty insurance segment, generating $768.14 million.

Heritage Insurance Holdings has seen a notable turnaround, becoming profitable this year with net income reaching US$33.09 million for the first half of 2024, up from US$21.79 million last year. Its price-to-earnings ratio stands at 8.6x, significantly below the US market average of 17.9x, indicating potential undervaluation. Despite a volatile share price recently, its EBIT covers interest payments by 6.9 times, showcasing strong financial health and high-quality earnings amidst industry challenges.

• Navigate through the intricacies of Heritage Insurance Holdings with our comprehensive health report here.

• Gain insights into Heritage Insurance Holdings' historical performance by reviewing our past performance report.

Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Loma Negra Compañía Industrial Argentina Sociedad Anónima, along with its subsidiaries, manufactures and sells cement and its derivatives in Argentina, with a market cap of $823.88 million.

Operations: Loma Negra generates revenue primarily from the sale of cement, masonry cement, and lime (ARS 337.88 billion), with additional income streams from its railroad (ARS 32.78 billion) and concrete (ARS 31.52 billion) segments. The company's net profit margin is a key financial metric to consider when evaluating its overall profitability.

Loma Negra, a notable player in the Basic Materials sector, has shown impressive earnings growth of 369.3% over the past year, outpacing the industry average of 36.1%. Trading at a price-to-earnings ratio of 12.2x, it offers good value compared to the broader US market's 17.8x. The company's debt to equity ratio improved from 36.6% to 32.5% over five years, and recent buybacks saw Loma Negra repurchase 65,624 shares for ARS0.41 million in early 2024.

• Click here and access our complete health analysis report to understand the dynamics of Loma Negra Compañía Industrial Argentina Sociedad Anónima.

• Learn about Loma Negra Compañía Industrial Argentina Sociedad Anónima's historical performance.

Make It Happen

• Reveal the 219 hidden gems among our US Undiscovered Gems With Strong Fundamentals screener with a single click here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

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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