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Three Undiscovered Gems in the United States with Strong Fundamentals

The United States market has shown impressive resilience, with the Materials sector gaining 3.1% while the overall market remained flat last week and up 32% over the past year. With earnings expected to grow by 15% per annum over the next few years, identifying stocks with strong fundamentals becomes crucial for investors looking to capitalize on this growth potential.

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%

★★★★★★

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%

★★★★★★

Banco Latinoamericano de Comercio Exterior S. A

311.64%

21.07%

24.77%

★★★★★☆

United Bancorporation of Alabama

13.34%

18.86%

25.45%

★★★★★☆

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

Here's a peek at a few of the choices from the screener.

SBC Medical Group Holdings

Simply Wall St Value Rating: ★★★★★☆

Overview: SBC Medical Group Holdings Incorporated operates in the healthcare services sector with a market cap of $808.80 million.

Operations: SBC Medical Group Holdings generates revenue primarily from its healthcare facilities and services, amounting to $217.54 million. The company's market cap stands at $808.80 million.

SBC Medical Group Holdings, recently added to the NASDAQ Composite Index, has shown impressive earnings growth of 164% over the past year, far outpacing the Professional Services industry’s 4.3%. Despite having more cash than total debt and being valued at 90.6% below its estimated fair value, shareholders experienced substantial dilution in the past year. With high-quality earnings and positive free cash flow reported at US$64.23M as of June 2024, SBC remains a compelling prospect despite its highly volatile share price over recent months.

NasdaqGM:SBC Debt to Equity as at Sep 2024
NasdaqGM:SBC Debt to Equity as at Sep 2024

Centrus Energy

Simply Wall St Value Rating: ★★★★★☆

Overview: Centrus Energy Corp. supplies nuclear fuel components and services for the nuclear power industry in the United States, Belgium, Japan, and internationally, with a market cap of $896.05 million.

Operations: Centrus Energy generates revenue primarily from its Low-Enriched Uranium (LEU) segment, which contributed $320.80 million, and its Technical Solutions segment, which added $71.80 million.

Centrus Energy, a small-cap company in the energy sector, has shown impressive financial improvements. The firm reported earnings growth of 164.9% over the past year, significantly outpacing the industry average of -32.9%. Trading at 66% below its estimated fair value and with more cash than total debt, Centrus appears undervalued. Recent revenue for Q2 2024 reached US$189 million compared to US$98 million last year, with net income rising to US$30.6 million from US$12.7 million previously.

NYSEAM:LEU Earnings and Revenue Growth as at Sep 2024
NYSEAM:LEU Earnings and Revenue Growth as at Sep 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 $965.98 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).

Valhi has shown impressive earnings growth of 215.4% over the past year, outpacing the Chemicals industry, which saw a -4.8% decline. The company’s net debt to equity ratio stands at a satisfactory 8.6%, and its interest payments are well covered by EBIT with a 4.7x coverage ratio. Recent financial results highlight robust performance, with second-quarter sales reaching US$559.7 million and net income hitting US$19.9 million compared to last year's net loss of US$3.2 million.

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

Seize The Opportunity

Looking For Alternative Opportunities?

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:SBC NYSEAM:LEU and NYSE:VHI.

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