Undiscovered Gems in United Kingdom for August 2024

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The United Kingdom's stock market has faced recent turbulence, with the FTSE 100 and FTSE 250 indices slipping amid weak trade data from China and global economic uncertainties. Despite these challenges, there remain promising opportunities within the small-cap sector for discerning investors. In this article, we explore three undiscovered gems in the UK market that show potential for growth even in a volatile economic landscape.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Globaltrans Investment

15.40%

2.68%

16.51%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

London Security

0.31%

9.47%

7.41%

★★★★★★

Georgia Capital

NA

-27.80%

18.94%

★★★★★★

M&G Credit Income Investment Trust

NA

-0.35%

1.18%

★★★★★★

Fix Price Group

43.59%

12.53%

23.49%

★★★★★☆

Ros Agro

49.06%

17.05%

17.70%

★★★★★☆

Goodwin

59.96%

9.26%

13.12%

★★★★★☆

BBGI Global Infrastructure

0.02%

6.58%

9.90%

★★★★★☆

Mountview Estates

16.64%

4.50%

-0.59%

★★★★☆☆

Click here to see the full list of 81 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

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

Cohort

Simply Wall St Value Rating: ★★★★★★

Overview: Cohort plc, with a market cap of £346.37 million, operates through its subsidiaries to offer a range of products and services in defense, security, and related markets across the United Kingdom, Germany, Portugal, Africa, North and South America, and the Asia Pacific.

Operations: Revenue streams for Cohort plc include £119.60 million from Sensors and Effectors and £82.93 million from Communications and Intelligence.

Cohort, a small cap in the Aerospace & Defense sector, has shown impressive growth with earnings up 34.9% over the past year, outpacing the industry average of 14.8%. The company's debt to equity ratio improved from 32.5% to 29.2% over five years, and its interest payments are well covered by EBIT at 15.5x coverage. Recent highlights include a €33 million contract with NATO and a net income increase to £15.32 million from £11.36 million last year.

AIM:CHRT Earnings and Revenue Growth as at Aug 2024
AIM:CHRT Earnings and Revenue Growth as at Aug 2024

Seplat Energy

Simply Wall St Value Rating: ★★★★☆☆

Overview: Seplat Energy Plc is involved in oil and gas exploration, production, and gas processing activities across Nigeria, the Bahamas, Italy, Switzerland, Barbados, and England with a market cap of £1.10 billion.

Operations: Seplat Energy generates revenue primarily from oil ($815.03 million) and gas ($120.87 million). The company has a market cap of £1.10 billion.