Discover These 3 Undiscovered Gems in the United Kingdom

In This Article:

Over the last 7 days, the United Kingdom market has dropped 2.3%, but it has risen by 7.4% over the past year, with earnings expected to grow by 14% per annum over the next few years. In this dynamic environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding; here are three such undiscovered gems in the UK market.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Andrews Sykes Group

NA

1.69%

3.16%

★★★★★★

Globaltrans Investment

15.40%

2.68%

16.51%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

London Security

0.31%

9.47%

7.41%

★★★★★★

M&G Credit Income Investment Trust

NA

-0.35%

1.18%

★★★★★★

Rights and Issues Investment Trust

NA

-3.68%

-4.07%

★★★★★★

BBGI Global Infrastructure

0.02%

3.08%

6.85%

★★★★★☆

FW Thorpe

3.34%

11.37%

9.41%

★★★★★☆

Goodwin

52.21%

9.26%

13.12%

★★★★★☆

Mountview Estates

16.64%

4.50%

-0.59%

★★★★☆☆

Click here to see the full list of 82 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Griffin Mining

Simply Wall St Value Rating: ★★★★★★

Overview: Griffin Mining Limited is a mining and investment company focused on the exploration, development, and operation of mineral properties, with a market cap of £278.64 million.

Operations: Griffin Mining generates revenue primarily from its Caijiaying Zinc Gold Mine, which reported $146.02 million in revenue.

Griffin Mining, a small-cap player in the UK, has shown impressive performance with earnings growth of 97.8% over the past year, outpacing the Metals and Mining industry at 8.7%. The company mined 429,448 tonnes of ore in Q2 2024 compared to 366,762 tonnes last year. With no debt and trading at 66.2% below its estimated fair value, Griffin appears undervalued. Future earnings are forecasted to grow by 4.27% annually.

AIM:GFM Debt to Equity as at Sep 2024
AIM:GFM Debt to Equity as at Sep 2024

Yü Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Yü Group PLC, with a market cap of £259.32 million, supplies energy and utility solutions primarily in the United Kingdom through its subsidiaries.

Operations: Yü Group PLC generates revenue primarily from its Retail segment (£459.80 million) and Smart segment (£5.56 million), with minimal contributions from Metering Assets (£0.08 million). The company also engages in intra-segment trading, which offsets £5.43 million of its revenue.

Yü Group, a small cap energy supplier, shows promising financial health with cash exceeding total debt and a modest debt to equity ratio of 0.8%. Over the past year, earnings surged by 547%, significantly outpacing the Renewable Energy industry's -13.6%. Trading at 67.5% below its fair value estimate, Yü appears undervalued compared to peers. Despite recent share price volatility, it remains profitable with strong interest coverage and positive free cash flow of £21.53M as of June 30, 2023.