Undiscovered Gems in the US Market for September 2025

As the U.S. stock market navigates a complex landscape of record highs and anticipated interest rate cuts, small-cap stocks present intriguing opportunities amid resilient consumer spending and fluctuating economic indicators. In this dynamic environment, identifying undiscovered gems requires a keen eye for companies that demonstrate strong fundamentals and adaptability to changing market conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 285 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.

Motorcar Parts of America (MPAA)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Motorcar Parts of America, Inc. focuses on manufacturing, remanufacturing, and distributing replacement parts for heavy-duty trucks, industrial machinery, marine equipment, and agricultural applications in the United States with a market capitalization of approximately $305.38 million.

Operations: The primary revenue stream for Motorcar Parts of America comes from its Hard Parts segment, generating $725.15 million.

Motorcar Parts of America (MPAA) has been making strides in the auto components sector, with its recent profitability marking a significant turnaround. The company's debt to equity ratio has improved slightly from 49.7% to 49.1% over five years, although its net debt to equity remains high at 43.5%. Despite this, MPAA is trading at a compelling value, approximately 91.1% below its estimated fair value, indicating potential for price appreciation. Recent buybacks have seen the company repurchase about 8.2% of shares for US$25.54 million since June 2016, reflecting confidence in its financial strategy and market position as it navigates industry challenges and opportunities in emerging markets like Mexico and Latin America.

• Motorcar Parts of America's growth is driven by rising vehicle ages and product line expansion. Click here to explore the full narrative on Motorcar Parts of America.

Gibraltar Industries (ROCK)

Simply Wall St Value Rating: ★★★★★★

Overview: Gibraltar Industries, Inc. is a company that manufactures and provides products and services for the residential, renewable energy, agtech, and infrastructure markets both in the United States and internationally, with a market cap of approximately $1.78 billion.

Operations: Gibraltar Industries generates revenue primarily from its residential segment at $793.34 million, followed by agtech at $183.41 million and infrastructure at $87.85 million. The company experiences a segment adjustment of $285.41 million in its financials, impacting overall revenue figures.

Gibraltar Industries is making strategic shifts, focusing on its core operations in infrastructure and Agtech markets while divesting from renewables. This realignment aims to capitalize on North American infrastructure demands, with earnings growing 20.7% over the past year, outpacing the building industry’s -3.8%. The company remains debt-free, enhancing its financial flexibility. Recent earnings showed a net income of US$26 million for Q2 2025 compared to US$32.2 million a year ago, with sales rising to US$309.52 million from US$273.62 million previously. Despite being dropped from several Russell indices, Gibraltar's future prospects hinge on successful M&A integration and market conditions impacting its projected target share price of $85 based on anticipated earnings growth.

• Gibraltar Industries is strategically transforming to focus on core businesses and targeted M&A. Click here to explore the full narrative on Gibraltar Industries' strategic transformation.

Xunlei (XNET)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Xunlei Limited, along with its subsidiaries, operates an internet platform for digital media content in the People's Republic of China and has a market cap of approximately $472.32 million.

Operations: Xunlei generates revenue primarily from the operation of its online media platform, amounting to $355.83 million.

Xunlei has demonstrated remarkable growth, with earnings skyrocketing by 4878.7% over the past year, far surpassing the software industry's average of 15.5%. The company's price-to-earnings ratio of 0.7x is notably lower than the US market's 19.2x, suggesting it could be undervalued. Despite a slight increase in its debt-to-equity ratio from 6.1% to 6.5% over five years, Xunlei maintains more cash than total debt, indicating financial stability. Recent earnings showed net income at US$727 million compared to US$2.76 million last year, reflecting its strong performance and potential as an investment opportunity in this space.

• Take a closer look at Xunlei's potential here in our health report.

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

Seize The Opportunity

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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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