Discovering Undiscovered Gems in the United States August 2024

Over the last 7 days, the market has risen 2.1%, and in the past year, it has climbed 20%, with earnings forecast to grow by 15% annually. In such a robust environment, identifying stocks that are not only performing well but also have strong growth potential can be particularly rewarding for investors.

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%	★★★★★★
River Financial	131.04%	17.59%	20.70%	★★★★★★
Omega Flex	NA	2.13%	4.77%	★★★★★★
John B. Sanfilippo & Son	12.65%	3.66%	8.36%	★★★★★★
Teekay	NA	-8.88%	49.65%	★★★★★★
Mission Bancorp	25.37%	16.23%	20.16%	★★★★★★
First Northern Community Bancorp	NA	7.12%	10.04%	★★★★★★
Gravity	NA	15.31%	24.42%	★★★★★★
CSP	2.17%	-5.57%	73.73%	★★★★★☆
FRMO	0.19%	6.49%	15.82%	★★★★☆☆

Click here to see the full list of 218 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

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

PC Connection (NasdaqGS:CNXN)

Simply Wall St Value Rating: ★★★★★★

Overview: PC Connection, Inc., with a market cap of $1.89 billion, provides various information technology (IT) solutions worldwide through its subsidiaries.

Operations: The company generates revenue through three primary segments: Business Solutions ($1.06 billion), Enterprise Solutions ($1.17 billion), and Public Sector Solutions ($526.92 million).

Connection, Inc. (PC Connection) has been debt-free for five years, reflecting strong financial health. The company's P/E ratio of 22.9x is slightly below the industry average of 23.2x, indicating good value. Earnings grew by 0.7% last year, outpacing the Electronic industry's -9.9%. Recent earnings reports show Q2 sales at US$736 million with net income rising to US$26 million from US$20 million a year ago; diluted EPS increased to $0.99 from $0.75 last year.

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

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

Benchmark Electronics (NYSE:BHE)

Simply Wall St Value Rating: ★★★★★☆

Overview: Benchmark Electronics, Inc., together with its subsidiaries, offers product design, engineering services, technology solutions, and manufacturing services in the Americas, Asia, and Europe with a market cap of $1.73 billion.

Operations: Benchmark Electronics generates revenue through product design, engineering services, technology solutions, and manufacturing services across the Americas, Asia, and Europe. The company reported a market cap of $1.73 billion.

Benchmark Electronics, a small-cap player in the electronics industry, has shown resilience with earnings growth of 1.6% over the past year, outpacing the sector's -9.9%. The company’s debt to equity ratio increased from 14% to 26.4% in five years, but it remains well-covered by EBIT at 5.3x interest payments. Recently expanded operations in Brasov reflect its strategic push for global manufacturing capacity and customer-focused solutions across key sectors like medical and industrials.

• Unlock comprehensive insights into our analysis of Benchmark Electronics stock in this health report.

• Review our historical performance report to gain insights into Benchmark Electronics''s past performance.

Worthington Steel (NYSE:WS)

Simply Wall St Value Rating: ★★★★★☆

Overview: Worthington Steel, Inc. operates as a steel processor in North America with a market cap of $1.97 billion.

Operations: Worthington Steel generates revenue primarily from its Metal Processors and Fabrication segment, which reported $3.43 billion in revenue.

Worthington Steel reported a full-year net income of US$154.7 million, significantly up from US$87.1 million the previous year, with diluted earnings per share rising to US$3.11 from US$1.77. The company's Q4 sales reached US$911 million, showing growth compared to last year's figure of US$884 million. Despite this, Q4 net income dropped to US$53.2 million from US$67.3 million a year ago, and diluted EPS fell to $1.06 from $1.37 in the same period last year.

• Click here to discover the nuances of Worthington Steel with our detailed analytical health report.

• Gain insights into Worthington Steel's historical performance by reviewing our past performance report.

Turning Ideas Into Actions

• Investigate our full lineup of 218 US Undiscovered Gems With Strong Fundamentals right here.
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Looking For Alternative Opportunities?

• 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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