Undiscovered Gems And 2 Other Small Cap Finds With Promising Metrics

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Amidst a backdrop of market optimism fueled by expectations of economic growth and tax reforms following the recent U.S. elections, small-cap stocks have shown significant movement. The Russell 2000 Index, although not yet at record highs, led gains with an impressive weekly surge, reflecting renewed investor confidence in the potential for earnings growth and regulatory changes. In such an environment, identifying promising small-cap stocks requires a keen eye for companies with strong fundamentals and metrics that suggest resilience and growth potential despite broader market fluctuations.

Top 10 Undiscovered Gems With Strong Fundamentals

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

C&D Property Management Group

1.32%

37.15%

41.55%

★★★★★★

Morris State Bancshares

17.84%

4.83%

6.58%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

MAPFRE Middlesea

NA

14.56%

1.77%

★★★★★☆

Bakrie & Brothers

22.66%

7.78%

13.50%

★★★★★☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

Practic

NA

3.63%

6.85%

★★★★☆☆

Click here to see the full list of 4643 stocks from our Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Wanguo Gold Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Wanguo Gold Group Limited is an investment holding company involved in mining, ore processing, and the sale of concentrate products in China and the Solomon Islands, with a market capitalization of HK$10.64 billion.

Operations: Wanguo Gold Group generates revenue primarily from its Yifeng Project and Solomon Project, contributing CN¥749.25 million and CN¥912.63 million respectively.

Wanguo Gold Group, a smaller player in the mining industry, has shown impressive earnings growth of 89.9% over the past year, outpacing its industry peers. The company's financial health seems solid with interest payments well covered by EBIT at 91.7x coverage and positive free cash flow of HKD 217.13 million as of June 2024. However, shareholders experienced dilution due to a recent follow-on equity offering amounting to HKD 1.38 billion at HKD 8.33 per share for additional capital expansion and acquisitions, which might enhance future growth prospects despite increasing shares outstanding.

SEHK:3939 Earnings and Revenue Growth as at Nov 2024
SEHK:3939 Earnings and Revenue Growth as at Nov 2024

Karmarts

Simply Wall St Value Rating: ★★★★★★

Overview: Karmarts Public Company Limited, along with its subsidiary, operates in Thailand focusing on the manufacturing, packaging, import, and distribution of cosmetics and consumer products with a market capitalization of THB13.86 billion.