Three Undiscovered Gems in the United States with Promising Potential

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The market is up 4.9% in the last 7 days, with all sectors gaining ground. In the last year, the market has climbed 26%, and earnings are forecast to grow by 15% annually. In this robust environment, finding stocks with strong fundamentals and growth potential can be particularly rewarding. Here are three undiscovered gems in the United States that show promising potential based on current market conditions.

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%

-0.32%

6.73%

★★★★★★

QDM International

NA

123.47%

83.88%

★★★★★★

Teekay

NA

-6.48%

55.79%

★★★★★★

Mission Bancorp

25.37%

16.23%

20.16%

★★★★★★

Omega Flex

NA

1.31%

3.88%

★★★★★★

First Northern Community Bancorp

NA

7.12%

10.04%

★★★★★★

Longduoduo

NA

69.14%

101.50%

★★★★★★

Valhi

38.71%

2.57%

-19.76%

★★★★★☆

Village Super Market

17.52%

6.27%

19.60%

★★★★☆☆

FRMO

0.17%

12.99%

23.62%

★★★★☆☆

Click here to see the full list of 223 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Merchants Bancorp

Simply Wall St Value Rating: ★★★★★☆

Overview: Merchants Bancorp operates as a diversified bank holding company in the United States with a market cap of $1.99 billion.

Operations: Merchants Bancorp generates revenue primarily from three segments: Banking ($324.39 million), Mortgage Warehousing ($132.25 million), and Multi-Family Mortgage Banking ($155.67 million).

Merchants Bancorp, with total assets of US$18.2 billion and equity of US$1.9 billion, has seen a 40.6% earnings growth over the past year, outperforming the Diversified Financial industry’s 12.5%. It holds US$14.9 billion in deposits and US$10.9 billion in loans, achieving a net interest margin of 3.1%. Despite being dropped from several Russell indices recently, MBIN trades at 60.3% below its estimated fair value and declared dividends for Q3 2024.

NasdaqCM:MBIN Earnings and Revenue Growth as at Aug 2024
NasdaqCM:MBIN Earnings and Revenue Growth as at Aug 2024

Lifeway Foods

Simply Wall St Value Rating: ★★★★★★

Overview: Lifeway Foods, Inc. produces and markets probiotic-based products in the United States and internationally, with a market cap of $275.40 million.

Operations: Lifeway Foods generates revenue primarily from cultured dairy products, totaling $176.78 million. The company has a market cap of $275.40 million.

Lifeway Foods has shown impressive growth, with earnings up 139.1% over the past year, far outpacing the food industry's 0.2%. The company has no debt now, a significant improvement from five years ago when its debt-to-equity ratio was 11.1%. Recent financials highlight sales of US$49.16 million for Q2 2024 and net income of US$3.78 million, both higher than last year’s figures. However, insider selling has been significant in the past three months, reflecting some internal challenges amidst strong performance indicators.