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Jiayin Group And Two More Undiscovered Gems In The United States

The U.S. stock market showed signs of resilience this week, with the tech sector propelling a notable rally in major indices like the Nasdaq 100 and S&P 500. As investors digest a mix of second-quarter earnings and key economic indicators, such as GDP growth and inflation data, understanding which stocks might hold potential becomes increasingly pertinent in these dynamic market conditions. In this context, uncovering lesser-known stocks that may be poised for growth could offer interesting opportunities for investors looking to diversify their portfolios.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Morris State Bancshares

14.93%

0.44%

7.74%

★★★★★★

Omega Flex

NA

2.13%

4.77%

★★★★★★

QDM International

NA

123.47%

83.88%

★★★★★★

First Northern Community Bancorp

NA

6.68%

9.08%

★★★★★★

Teekay

NA

-8.88%

49.65%

★★★★★★

Mission Bancorp

25.37%

16.23%

20.16%

★★★★★★

FirstSun Capital Bancorp

27.36%

10.54%

30.73%

★★★★★★

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 221 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

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

Jiayin Group

Simply Wall St Value Rating: ★★★★★★

Overview: Jiayin Group Inc. operates as an online consumer finance service provider in the People’s Republic of China, with a market capitalization of approximately $302.82 million.

Operations: Jiayin Group generates revenue primarily through its unclassified services, showcasing a significant increase in gross profit from CN¥447.90 million in 2016 to CN¥3.42 billion by mid-2024, despite rising costs of goods sold (COGS). The company's operational strategy involves substantial investment in sales & marketing and research & development to fuel its growth, which is evident from the escalating operating expenses over the years.

Jiayin Group, a lesser-known player in the financial sector, exhibits intriguing investment potential. The company is debt-free and boasts high-quality earnings, ensuring stability. Despite a slight dip in profit margins from 33.9% to 22.2%, Jiayin remains profitable with positive free cash flow. Recently, sales surged to CNY 1,475 million from CNY 1,122 million year-over-year in Q1 2024, although net income slightly decreased to CNY 273 million. Additionally, the firm has repurchased shares worth $10.49 million since June 2022 and filed for a $200 million shelf registration—actions signaling confidence and growth prospects.

NasdaqGM:JFIN Earnings and Revenue Growth as at Jul 2024
NasdaqGM:JFIN Earnings and Revenue Growth as at Jul 2024

AMTD Digital

Simply Wall St Value Rating: ★★★★☆☆

Overview: AMTD Digital Inc. operates in Asia, offering a range of services including financial and non-financial digital solutions, digital media, content and marketing services, as well as hotel operations and VIP services; the company has a market cap of approximately $664.82 million.

Operations: The company generates its revenue primarily through the sale of goods and services, evidenced by a consistent increase in revenue from $1.86 million in April 2019 to $33.07 million by April 2023. It has managed to maintain a high net income margin, peaking at over 225% as of October 2023, which suggests effective management of operating expenses and strategic non-operating activities that significantly boost profitability.

AMTD Digital, with a P/E ratio of 10.1, well below the US market average of 18, showcases significant growth potential as an emerging player in the software sector. The company's earnings soared by 88.6% over the past year, outpacing the industry's growth of 23.1%. Despite a recent fiscal year-end change to align with its parent company's global strategy, AMTD reported robust half-year earnings with sales reaching $8.68 million and net income at $31.89 million. This performance highlights its resilience and adaptability in a dynamic market environment.

NYSE:HKD Earnings and Revenue Growth as at Jul 2024
NYSE:HKD Earnings and Revenue Growth as at Jul 2024

Yalla Group

Simply Wall St Value Rating: ★★★★★★

Overview: Yalla Group Limited is a company that provides a social networking and gaming platform mainly in the Middle East and North Africa, with a market capitalization of approximately $703.79 million.

Operations: Yalla Group operates a social networking and entertainment platform, generating revenue primarily through user engagement and related services. The company's cost structure includes expenses related to sales & marketing, research & development, and general administrative activities.

Yalla Group, a standout in the Interactive Media and Services industry, has shown impressive growth with earnings increasing by 59% over the past year—outpacing its industry's growth of 41%. This performance is supported by high-quality earnings and no debt, emphasizing its financial health. Recently, Yalla projected Q2 revenues between $72 million and $79 million, following a robust Q1 with sales rising to $78.73 million from $73.52 million year-over-year. The company also completed significant share repurchases totaling $35.51 million since 2021.

NYSE:YALA Debt to Equity as at Jul 2024
NYSE:YALA Debt to Equity as at Jul 2024

Make It Happen

  • Explore the 221 names from our US Undiscovered Gems With Strong Fundamentals screener here.

  • Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.

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Seeking Other Investments?

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 NasdaqGM:JFIN NYSE:HKD and NYSE:YALA.

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