Three Undiscovered Gems To Enhance Your Investment Portfolio

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The market is up 2.6% over the last week and has climbed 31% in the past year, with earnings forecast to grow by 15% annually. In this thriving environment, identifying lesser-known stocks with strong growth potential can be a strategic move to enhance your investment portfolio.

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%

★★★★★★

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%

★★★★★☆

FRMO

0.17%

12.99%

23.62%

★★★★☆☆

Click here to see the full list of 207 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

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

Bel Fuse

Simply Wall St Value Rating: ★★★★★★

Overview: Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits with a market cap of $917.13 million.

Operations: Bel Fuse generates revenue from three primary segments: Magnetic Solutions ($82.92 million), Connectivity Solutions ($214.44 million), and Power Solutions and Protection ($262.63 million). The company's market cap stands at $917.13 million.

Bel Fuse, a smaller player in the electronics industry, has seen its debt to equity ratio improve significantly from 62.7% to 16.8% over the past five years. Despite negative earnings growth of -9.3% last year, it trades at 20% below estimated fair value and boasts high-quality earnings with more cash than total debt. The company recently repurchased 235,500 shares for US$14.18 million and declared quarterly dividends on both Class A and B shares payable in November 2024.

NasdaqGS:BELF.A Debt to Equity as at Sep 2024
NasdaqGS:BELF.A Debt to Equity as at Sep 2024

Cricut

Simply Wall St Value Rating: ★★★★★★

Overview: Cricut, Inc. designs, markets, and distributes a creativity platform that enables users to transform ideas into professional-looking handmade goods, with a market cap of $1.39 billion.

Operations: Cricut generates revenue primarily through the sale of connected machines, accessories, and materials, as well as subscriptions to its cloud-based software. The company reported a gross profit margin of 48.30% in the most recent period.

Cricut has shown notable financial performance recently, with earnings growing by 40.2% over the past year, significantly outpacing the Consumer Durables industry. The company is debt-free now, unlike five years ago when its debt to equity ratio was 49.9%. Cricut repurchased 1.41 million shares for US$8.86 million between May and June 2024, indicating confidence in its valuation. Despite a revenue dip to US$167.95 million in Q2 from US$177.77 million last year, net income rose to US$19.77 million from US$16.02 million previously.

NasdaqGS:CRCT Debt to Equity as at Sep 2024
NasdaqGS:CRCT Debt to Equity as at Sep 2024

Worthington Steel

Simply Wall St Value Rating: ★★★★★☆

Overview: Worthington Steel, Inc. operates as a steel processor in North America with a market cap of approximately $1.73 billion.

Operations: The company's primary revenue stream is from its Metal Processors and Fabrication segment, generating $3.43 billion.

Worthington Steel, a small cap player in the Metals and Mining industry, has demonstrated impressive growth with earnings increasing by 77.6% over the past year. Trading at 37.4% below its estimated fair value, it offers potential for value investors. The company's net debt to equity ratio stands at a satisfactory 9.6%, and its interest payments are well covered by EBIT at 35.9 times coverage. Recent financials show annual sales of US$3.43 billion with net income rising to US$154.7 million from US$87.1 million last year, reflecting high-quality earnings amidst industry challenges.

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

Summing It All Up

Curious About Other Options?

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:BELF.A NasdaqGS:CRCT and NYSE:WS.

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