Uncovering October 2024's Undiscovered Gems in the United States

October 10, 2024

The United States market has shown robust performance, climbing 1.2% in the last week and rising 31% over the past year, with earnings projected to grow by 16% annually. In this thriving environment, identifying stocks that combine solid fundamentals with growth potential can uncover promising opportunities for investors seeking undiscovered gems.

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	122.41%	16.43%	18.50%	★★★★★★
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%	★★★★★★
Banco Latinoamericano de Comercio Exterior S. A	311.64%	21.07%	24.77%	★★★★★☆
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
Chain Bridge Bancorp	10.64%	41.34%	18.53%	★★★★☆☆
FRMO	0.17%	12.99%	23.62%	★★★★☆☆

Click here to see the full list of 224 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

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

Hilltop Holdings (NYSE:HTH)

Simply Wall St Value Rating: ★★★★★★

Overview: Hilltop Holdings Inc. is a financial holding company that offers business and consumer banking services, with a market capitalization of approximately $1.99 billion.

Operations: Hilltop Holdings generates revenue primarily from its banking ($410.73 million), broker-dealer ($460.64 million), and mortgage origination ($298.48 million) segments, with a smaller contribution from corporate activities ($6.47 million).

Hilltop Holdings, with assets of US$15.6 billion and equity at US$2.2 billion, showcases a robust financial stance. The company has a sufficient allowance for bad loans at 109%, reflecting prudent risk management given its bad loan ratio of 1.3%. Recent buybacks included 320,000 shares for US$9.91 million, indicating confidence in its own valuation. Earnings grew by 12% over the past year, outpacing industry trends despite forecasts suggesting a potential average decline of 2.3% annually over the next three years.

NYSE:HTH Earnings and Revenue Growth as at Oct 2024

IDT (NYSE:IDT)

Simply Wall St Value Rating: ★★★★★★

Overview: IDT Corporation offers communications and payment services across the United States, the United Kingdom, and internationally, with a market cap of $971.18 million.

Operations: IDT generates revenue through its communications and payment services internationally. The company has a market cap of approximately $971.18 million.

IDT, a nimble player in the telecom sector, shines with its impressive 59.2% earnings growth over the past year, outpacing the industry average of -26%. Trading at 73.5% below estimated fair value, IDT boasts high-quality earnings and remains debt-free for five years. Recent financials reveal net income climbing to US$64 million from US$40 million last year, while basic EPS rose to US$2.55 from US$1.59. The company also repurchased shares worth US$3.4 million recently, signaling confidence in its market position.

Moove Lubricants Holdings (NYSE:MOOV)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Moove Lubricants Holdings is involved in the formulation, manufacturing, distribution, marketing, selling, and servicing of lubricant products across South America, North America, and Europe with a market cap of $1.78 billion.

Operations: Moove Lubricants Holdings generates revenue primarily from its lubricant products, with South America contributing R$4.66 billion, Europe R$2.97 billion, and North America R$2.36 billion.

Moove Lubricants Holdings, a small player in the market, showcases impressive growth with earnings surging by 65% over the past year, significantly outpacing the Chemicals industry. Despite its high net debt to equity ratio of 143.4%, interest payments are well covered at 8.5 times by EBIT. The company's P/E ratio stands attractively at 17.7x compared to the broader US market's 18.2x, suggesting potential value for investors considering its recent $100 million IPO filing on September 16th, 2024.

Key Takeaways

Investigate our full lineup of 224 US Undiscovered Gems With Strong Fundamentals right here.
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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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