Undiscovered Gems in the United States for December 2024

Over the last 7 days, the United States market has remained flat, yet it has experienced a remarkable 29% increase over the past year with earnings forecasted to grow by 15% annually. In this thriving environment, a good stock is often characterized by its potential for growth and resilience, making it an ideal time to explore some of the country's undiscovered gems.

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%	★★★★★★
Wilson Bank Holding	NA	7.87%	8.22%	★★★★★★
Franklin Financial Services	173.21%	5.55%	-1.86%	★★★★★★
Morris State Bancshares	17.84%	4.83%	6.58%	★★★★★★
Omega Flex	NA	0.39%	2.57%	★★★★★★
Parker Drilling	46.05%	0.86%	52.25%	★★★★★★
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%	★★★★★☆
Pure Cycle	5.31%	-4.44%	-5.74%	★★★★★☆

Click here to see the full list of 235 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.

Conduent (NasdaqGS:CNDT)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Conduent Incorporated offers digital business solutions and services across the commercial, government, and transportation sectors globally, with a market cap of approximately $701.92 million.

Operations: Conduent generates revenue primarily from its Commercial, Government, and Transportation segments, with contributions of $1.88 billion, $1.03 billion, and $722 million respectively. The company has a market cap of approximately $701.92 million.

Conduent, a player in the professional services sector, recently became profitable and is trading at a significant discount of 62.2% to its estimated fair value. The company's net debt to equity ratio stands at a satisfactory 31.5%, reflecting prudent financial management over the past five years as it reduced from 74.7% to 69.9%. Despite high non-cash earnings, Conduent faces challenges with projected revenue declines of about 7% annually over the next three years and shrinking profit margins from 0.6% to 0.3%. Recent strategic moves include partnerships like those with BNY Mellon for pension risk transfer services and SEPTA for transportation solutions, which could bolster future growth prospects despite current headwinds in revenue stability and cash flow flexibility issues.

• Conduent's strategic shift towards offshore services aims to enhance profit margins despite projected revenue declines. Click here to explore the full narrative on Conduent's investment thesis.

ReposiTrak (NYSE:TRAK)

Simply Wall St Value Rating: ★★★★★★

Overview: ReposiTrak, Inc. is a software-as-a-service provider that designs, develops, and markets proprietary software products in North America with a market capitalization of $437.72 million.

Operations: ReposiTrak generates revenue primarily from its software and programming segment, amounting to $20.83 million. The company's market capitalization stands at approximately $437.72 million.

ReposiTrak, a nimble player in the traceability and compliance sector, has made strides with its ReposiTrak Traceability Network (RTN), onboarding 50 new nut butter suppliers to enhance supply chain transparency. This expansion aligns with the company's strategy to capitalize on regulatory changes and grow its revenue from traceability services. Recent financials reveal a solid performance, with first-quarter sales rising to US$5.44 million from US$5.06 million last year and net income increasing to US$1.67 million from US$1.38 million. The company also completed a significant share repurchase program, acquiring over 2 million shares for US$13.01 million since 2019, reflecting confidence in its growth trajectory amidst evolving market demands.

• ReposiTrak's revenue growth is driven by expanding traceability mandates from major retailers; click here to explore the full narrative on the company's potential.

Waterdrop (NYSE:WDH)

Simply Wall St Value Rating: ★★★★★☆

Overview: Waterdrop Inc. operates as an online insurance brokerage platform in the People's Republic of China, connecting users with various insurance products, and has a market cap of approximately $446.42 million.

Operations: Waterdrop generates revenue primarily through commissions from insurance brokerage services. The company focuses on connecting users with insurance products underwritten by various insurers in China.

Waterdrop, a relatively small player in the insurance sector, has shown impressive earnings growth of 36.9% over the past year, outpacing the industry average of 33.2%. The company reported third-quarter sales of CNY 704 million and net income of CNY 93 million, reflecting significant improvement from last year's figures. With a price-to-earnings ratio of 9.9x, it trades at an attractive valuation compared to peers and the broader US market's 19.4x. Although its debt-to-equity ratio increased to 3.2% over five years, Waterdrop holds more cash than total debt, suggesting financial stability amidst expansion efforts.

• Dive into the specifics of Waterdrop here with our thorough health report.

• Assess Waterdrop's past performance with our detailed historical performance reports.

Next Steps

• Gain an insight into the universe of 235 US Undiscovered Gems With Strong Fundamentals by clicking here.
• Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Interested In Other Possibilities?

• 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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