Uncovering 3 Hidden Small Cap Gems with Strong Fundamentals

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Over the last 7 days, the United States market has risen 1.9%, and it is up 33% over the last 12 months, with earnings expected to grow by 15% per annum over the next few years. In this thriving environment, identifying small-cap stocks with strong fundamentals can offer significant opportunities for investors looking to capitalize on robust 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%

★★★★★★

Mission Bancorp

25.37%

16.23%

20.16%

★★★★★★

Teekay

NA

-6.48%

55.79%

★★★★★★

Omega Flex

NA

1.31%

3.88%

★★★★★★

First Northern Community Bancorp

NA

7.12%

10.04%

★★★★★★

First National Bank Alaska

221.06%

2.98%

1.82%

★★★★★☆

Banco Latinoamericano de Comercio Exterior S. A

311.64%

21.07%

24.77%

★★★★★☆

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

Let's dive into some prime choices out of from the screener.

Sezzle

Simply Wall St Value Rating: ★★★★★☆

Overview: Sezzle Inc. operates as a technology-enabled payments company primarily in the United States and Canada with a market cap of $918.42 million.

Operations: Sezzle generates revenue primarily through lending to end-customers, which amounted to $192.69 million. The company's market cap is $918.42 million.

Sezzle's earnings surged 434.8% over the past year, outpacing the industry growth of 10.5%. The company's net debt to equity ratio stands at a satisfactory 21.6%, and its interest payments are well covered by EBIT at 4.9x coverage. Recently, Sezzle announced a strategic partnership with WebBank to enhance its Pay-in-2 and Pay-in-4 products, alongside a multi-year jersey patch deal with the Minnesota Timberwolves, which should bolster brand visibility significantly.

NasdaqCM:SEZL Debt to Equity as at Sep 2024
NasdaqCM:SEZL Debt to Equity as at Sep 2024

SBC Medical Group Holdings

Simply Wall St Value Rating: ★★★★★☆

Overview: SBC Medical Group Holdings Incorporated operates in the healthcare services sector with a market capitalization of $586.38 million.

Operations: SBC Medical Group Holdings generates revenue primarily from its healthcare facilities and services, amounting to $217.54 million.

SBC Medical Group Holdings, a small-cap healthcare player, has shown impressive growth with earnings surging 164% over the past year, far outpacing the industry’s 8%. Trading at 94.1% below its estimated fair value and holding more cash than total debt, SBC's financial health appears robust. Despite high share price volatility in recent months, the company boasts high-quality earnings and positive free cash flow of US$64.23M as of June 2024.