Undiscovered Gems in United Kingdom Stocks to Watch This August 2024

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The United Kingdom market has climbed by 2.4% over the past week, with every sector up, and has risen by 9.1% over the last year. In such a robust environment where earnings are forecast to grow by 14% annually, identifying promising stocks involves looking for companies with strong fundamentals and growth potential that have yet to capture widespread attention.

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: Cohort generates revenue primarily from two segments: Sensors and Effectors (£119.60 million) and Communications and Intelligence (£82.93 million).

Cohort plc, an aerospace and defense company, reported impressive earnings growth of 34.9% over the past year, outpacing the industry average of 14.8%. The company’s debt to equity ratio has improved from 32.5% to 29.2% in five years, and it holds more cash than total debt. Recent financials show net income at £15.32 million compared to £11.36 million last year with basic EPS rising to £0.38 from £0.28 per share.

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 Plc generates revenue primarily from oil ($815.03 million) and gas ($120.87 million).

Seplat Energy has shown impressive earnings growth of 207.6% over the past year, significantly outperforming the Oil and Gas sector's -49%. The company's net debt to equity ratio stands at a satisfactory 20.6%, and interest payments are well covered by EBIT at 5.8x. Despite a volatile share price recently, Seplat remains profitable with high-quality earnings and positive free cash flow, making it an intriguing prospect in the UK market.