Advertisement
Australia markets open in 6 hours 48 minutes
  • ALL ORDS

    8,456.80
    +13.10 (+0.16%)
     
  • AUD/USD

    0.6723
    -0.0028 (-0.41%)
     
  • ASX 200

    8,187.40
    +10.50 (+0.13%)
     
  • OIL

    73.18
    -0.39 (-0.53%)
     
  • GOLD

    2,633.20
    -2.20 (-0.08%)
     
  • Bitcoin AUD

    92,386.58
    -77.08 (-0.08%)
     
  • XRP AUD

    0.79
    +0.01 (+1.30%)
     

Exploring 3 Undiscovered Gems In The United States With Strong Potential

In the last week, the market has been flat, yet it is up 21% over the past year with earnings forecasted to grow by 15% annually. In this environment, identifying stocks with strong potential involves looking for companies that are not only undervalued but also poised to benefit from sustained growth trends.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Hamilton Beach Brands Holding

34.31%

1.65%

4.46%

★★★★★★

Morris State Bancshares

10.20%

-0.32%

6.73%

★★★★★★

River Financial

122.41%

16.43%

18.50%

★★★★★★

Mission Bancorp

25.37%

16.23%

20.16%

★★★★★★

Teekay

NA

-6.48%

55.79%

★★★★★★

Omega Flex

NA

1.31%

3.88%

★★★★★★

First Northern Community Bancorp

NA

7.12%

10.04%

★★★★★★

Valhi

38.71%

2.57%

-19.76%

★★★★★☆

QDM International

36.42%

107.08%

78.76%

★★★★★☆

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.

Below we spotlight a couple of our favorites from our exclusive screener.

Republic Bancorp

Simply Wall St Value Rating: ★★★★★★

Overview: Republic Bancorp, Inc. operates as a bank holding company for Republic Bank & Trust Company, offering a range of banking products and services in the United States with a market cap of $1.23 billion.

Operations: Republic Bancorp generates revenue primarily from its Core Banking segment, which includes Traditional Banking ($223.15 million) and Warehouse Lending ($9.91 million), along with its Republic Processing Group (RPG) that covers Tax Refund Solutions ($22.68 million), Republic Credit Solutions ($39.93 million), and Republic Payment Solutions ($17.85 million). The company's market cap is $1.23 billion, reflecting its diversified revenue streams within the banking sector in the United States.

Republic Bancorp, with total assets of US$6.6B and equity of US$955.4M, has been growing steadily. Its earnings surged by 10.8% over the past year, outperforming the banking industry's -16%. Total deposits stand at US$5.1B while loans amount to US$5.2B, supported by a sufficient bad loan allowance of 393%. Despite significant insider selling recently, Republic Bancorp trades at nearly 40% below its estimated fair value and boasts high-quality earnings alongside primarily low-risk funding sources (90%).

NasdaqGS:RBCA.A Debt to Equity as at Aug 2024
NasdaqGS:RBCA.A Debt to Equity as at Aug 2024

ScanSource

Simply Wall St Value Rating: ★★★★★★

Overview: ScanSource, Inc. distributes technology products and solutions across the United States, Canada, and internationally with a market cap of $1.18 billion.

Operations: ScanSource generates revenue through the distribution of technology products and solutions across various regions, including the United States and Canada. The company has a market cap of $1.18 billion.

ScanSource, a small-cap player in the electronic industry, has faced a challenging year with earnings growth at -12.5%, lagging behind the industry's -7.9%. Despite this, it trades at 16.2% below its estimated fair value and maintains strong financial health with more cash than total debt and an impressive EBIT coverage of 26.7x interest payments. The company repurchased shares recently and aims to grow earnings by 3.58% annually while actively seeking acquisitions to bolster its portfolio.

NasdaqGS:SCSC Debt to Equity as at Aug 2024
NasdaqGS:SCSC Debt to Equity as at Aug 2024

Valhi

Simply Wall St Value Rating: ★★★★★☆

Overview: Valhi, Inc. operates in the chemicals, component products, and real estate management and development sectors across Europe, North America, the Asia Pacific, and internationally with a market cap of $807.82 million.

Operations: Valhi, Inc. generates revenue primarily from its chemicals segment ($1.78 billion), followed by component products ($157.40 million) and real estate management and development ($78.50 million). The company focuses on these three distinct revenue streams to drive its financial performance.

Valhi, a small cap player in the Chemicals industry, has shown impressive earnings growth of 215.4% over the past year, outpacing the industry's -4.8%. The company's debt to equity ratio improved from 78% to 38.7% over five years, and its net debt to equity ratio stands at a satisfactory 8.6%. Recent earnings reports highlight revenue of US$563 million for Q2 2024 and net income of US$19.9 million compared to last year's loss of US$3.2 million.

NYSE:VHI Debt to Equity as at Aug 2024
NYSE:VHI Debt to Equity as at Aug 2024

Summing It All Up

Ready For A Different Approach?

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.

Companies discussed in this article include NasdaqGS:RBCA.A NasdaqGS:SCSC and NYSE:VHI.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com