Discovering Sweden's Undiscovered Gems This August 2024

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As global markets experience volatility and European indices show mixed performance, investors are increasingly looking towards smaller markets for hidden opportunities. In Sweden, a country known for its innovation and stability, small-cap stocks offer potential gems that may provide resilience amid broader market fluctuations. In the current environment, identifying promising stocks involves focusing on companies with strong fundamentals, innovative products or services, and a solid market position. Let's explore three Swedish small-cap stocks that could be undiscovered gems this August 2024.

Top 10 Undiscovered Gems With Strong Fundamentals In Sweden

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Softronic

NA

3.58%

7.41%

★★★★★★

Bahnhof

NA

9.47%

15.07%

★★★★★★

Duni

29.33%

10.78%

22.98%

★★★★★★

AB Traction

NA

5.38%

5.19%

★★★★★★

Firefly

NA

15.31%

29.94%

★★★★★★

Linc

NA

56.01%

0.54%

★★★★★★

AQ Group

7.30%

14.89%

22.26%

★★★★★★

Rederiaktiebolaget Gotland

NA

-14.29%

18.06%

★★★★★★

Karnell Group

44.29%

22.04%

39.45%

★★★★★☆

Solid F?rs?kringsaktiebolag

NA

7.64%

28.44%

★★★★☆☆

Click here to see the full list of 53 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Betsson

Simply Wall St Value Rating: ★★★★★★

Overview: Betsson AB (publ) operates and manages online gaming businesses across various regions including the Nordic countries, Latin America, Western Europe, Central and Eastern Europe, Central Asia, and internationally with a market cap of SEK17.87 billion.

Operations: Revenue for Betsson AB (publ) comes primarily from its Casinos & Resorts segment, which generated €1.01 billion. The company has a market cap of SEK17.87 billion.

Betsson, a notable player in the gaming sector, has seen its earnings grow 12.2% over the past year, outpacing the hospitality industry's -12.7%. Trading at 74.3% below estimated fair value and with a debt-to-equity ratio reduced from 25.9% to 21.7% in five years, Betsson shows financial prudence. Recent second-quarter sales hit €271.5M up from €236.8M last year, though net income slightly dipped to €45.5M from €50.2M previously due to expansion costs in Peru and other markets.

OM:BETS B Debt to Equity as at Aug 2024
OM:BETS B Debt to Equity as at Aug 2024

Rederiaktiebolaget Gotland

Simply Wall St Value Rating: ★★★★★★

Overview: Rederiaktiebolaget Gotland (publ), along with its subsidiaries, operates as a passenger and freight shipping company in Sweden with a market cap of SEK5.79 billion.