Over the last 7 days, the United States market has risen by 2.3%, and it has seen a remarkable increase of 35% over the past year, with earnings projected to grow by 15% annually in the coming years. In this thriving environment, identifying stocks like Amalgamated Financial that offer strong fundamentals and potential for growth can be key to uncovering undiscovered gems.
Top 10 Undiscovered Gems With Strong Fundamentals In The United States
Overview: Amalgamated Financial Corp. is a bank holding company for Amalgamated Bank, offering commercial and retail banking, investment management, and trust and custody services in the United States, with a market cap of approximately $1.02 billion.
Operations: Amalgamated Financial generates revenue primarily from its banking segment, which amounts to $303.07 million. The company's market capitalization is approximately $1.02 billion.
Amalgamated Financial, with assets of US$8.4 billion and equity of US$698.3 million, is making waves in the financial sector by focusing on sustainable lending. It boasts total deposits of US$7.6 billion against loans of US$4.5 billion, reflecting a robust balance sheet supported by low-risk funding sources comprising 98% customer deposits. The bank's allowance for bad loans stands at a sufficient 215%, covering non-performing loans at just 0.6%. Over the past year, earnings surged by 16.2%, outpacing industry averages and indicating strong operational performance amidst broader economic transitions toward sustainability initiatives.
Overview: PC Connection, Inc. offers a range of information technology solutions globally and has a market capitalization of approximately $1.79 billion.
Operations: PC Connection generates revenue through three primary segments: Business Solutions ($1.06 billion), Enterprise Solutions ($1.20 billion), and Public Sector Solutions ($528.65 million). The company's cost structure and profitability are influenced by these diverse revenue streams, with particular attention to the trends in gross profit margin or net profit margin for insights into financial efficiency.
PC Connection is carving its niche with strategic moves in AI and sector expansion, notably in healthcare and retail. The company reported Q3 sales of US$724.72 million, up from US$693.09 million last year, while net income rose to US$27.06 million from US$25.6 million. With no debt on the books for five years and a recent share buyback of 59,192 shares worth US$3.91 million, it shows commitment to shareholder value. Despite significant insider selling recently, its earnings growth of 15% outpaces the Electronic industry’s -7%. Trading at 8% below fair value estimates suggests potential upside for investors.
Overview: Safety Insurance Group, Inc. offers private passenger and commercial automobile, as well as homeowner insurance in the United States, with a market cap of $1.18 billion.
Operations: Safety Insurance Group generates revenue primarily through private passenger and commercial automobile insurance, along with homeowner insurance in the United States. The company has a market cap of $1.18 billion.
Safety Insurance Group, a notable player in the insurance sector, has shown impressive earnings growth of 140.4% over the past year, outpacing the industry average of 29.7%. Their price-to-earnings ratio stands at 17.5x, slightly below the US market average of 18.3x, suggesting potential value for investors. The company reported third-quarter revenue of US$295 million and net income of US$25.89 million compared to last year's figures of US$229 million and US$1.95 million respectively, reflecting significant improvement in profitability with basic earnings per share rising to US$1.74 from just US$0.13 a year ago.
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.
