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Three Undiscovered Gems In The United States Market

The market is up 4.1% in the last 7 days, with all sectors gaining ground. In the last year, the market has climbed 25%, and earnings are expected to grow by 15% per annum over the next few years. In this favorable environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding. Here are three undiscovered gems in the United States market that could offer promising opportunities 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%

-0.32%

6.73%

★★★★★★

National Presto Industries

NA

1.58%

-11.29%

★★★★★★

John B. Sanfilippo & Son

12.65%

3.66%

8.36%

★★★★★★

Teekay

NA

-6.48%

55.79%

★★★★★★

Mission Bancorp

25.37%

16.23%

20.16%

★★★★★★

Omega Flex

NA

1.31%

3.88%

★★★★★★

First Northern Community Bancorp

NA

7.12%

10.04%

★★★★★★

Valhi

38.71%

2.57%

-19.76%

★★★★★☆

Tiptree

68.59%

20.55%

20.06%

★★★★★☆

FRMO

0.17%

12.99%

23.62%

★★★★☆☆

Click here to see the full list of 223 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

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

Merchants Bancorp

Simply Wall St Value Rating: ★★★★★☆

Overview: Merchants Bancorp operates as a diversified bank holding company in the United States with a market cap of $1.99 billion.

Operations: Merchants Bancorp generates revenue primarily from Banking ($324.39 million), Mortgage Warehousing ($132.25 million), and Multi-Family Mortgage Banking ($155.67 million) segments.

Merchants Bancorp, with total assets of US$18.2B and total equity of US$1.9B, has seen its earnings grow by 40.6% over the past year, outperforming the Diversified Financial industry’s 12.5%. Total deposits stand at US$14.9B while loans are at US$10.9B with a net interest margin of 3.1%. The company trades at 60% below its estimated fair value and maintains a low level of bad loans (1.3%). Recent announcements include quarterly dividends for common and preferred stocks payable in October 2024.

NasdaqCM:MBIN Debt to Equity as at Aug 2024
NasdaqCM:MBIN Debt to Equity as at Aug 2024

Photronics

Simply Wall St Value Rating: ★★★★★★

Overview: Photronics, Inc., along with its subsidiaries, manufactures and sells photomask products and services across the United States, Taiwan, China, Korea, Europe, and other international markets with a market cap of $1.51 billion.

Operations: Photronics generates revenue primarily from the manufacture and sale of photomask products, totaling $885.01 million. The company has a market cap of $1.51 billion.

Photronics, Inc. stands out with its recent inclusion in multiple Russell indexes, reflecting its growth potential. Despite a 5% drop in net income to US$36.25 million for Q2 2024, the company’s earnings per share from continuing operations reached US$0.59. Over the past year, earnings grew by 9.9%, outperforming the semiconductor industry average of -5.9%. Trading at 66% below fair value estimates and being debt-free further enhances its appeal as an undervalued investment opportunity in this sector.

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

Central Securities

Simply Wall St Value Rating: ★★★★☆☆

Overview: Central Securities Corp. is a publicly owned investment manager with a market cap of $1.25 billion.

Operations: The investment manager generates revenue primarily through management fees and investment income. With a market cap of $1.25 billion, it focuses on maximizing returns from its portfolio investments.

Central Securities Corporation reported a significant earnings growth of 67% over the past year, outpacing the Capital Markets industry average of 16.5%. The company is debt-free and has been for the last five years, which eliminates concerns about interest coverage. A notable one-off gain of US$277.1 million impacted its financial results for the 12 months ending June 30, 2024. Trading at approximately 70% below its estimated fair value, Central Securities appears undervalued in today's market.

NYSEAM:CET Earnings and Revenue Growth as at Aug 2024
NYSEAM:CET Earnings and Revenue Growth as at Aug 2024

Summing It All Up

  • Reveal the 223 hidden gems among our US Undiscovered Gems With Strong Fundamentals screener with a single click here.

  • Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly.

  • Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

Searching for a Fresh Perspective?

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 NasdaqCM:MBIN NasdaqGS:PLAB and NYSEAM:CET.

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