Exploring Cricut And 2 Hidden Small Caps with Strong Fundamentals

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The market has climbed by 3.0% over the past week, with every sector up, and in the last year, it has risen by 25%. In this favorable environment where earnings are expected to grow by 15% annually over the next few years, identifying stocks with strong fundamentals can be particularly rewarding; Cricut and two other small-cap companies exemplify these hidden gems.

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%

-0.28%

6.97%

★★★★★★

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%

★★★★★★

Banco Latinoamericano de Comercio Exterior S. A

311.64%

21.07%

24.77%

★★★★★☆

Innovex International

19.92%

29.88%

40.68%

★★★★★☆

Valhi

38.71%

2.57%

-19.76%

★★★★★☆

QDM International

36.42%

107.08%

78.76%

★★★★★☆

FRMO

0.17%

12.99%

23.62%

★★★★☆☆

Click here to see the full list of 211 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Cricut

Simply Wall St Value Rating: ★★★★★★

Overview: Cricut, Inc. designs, markets, and distributes a creativity platform that allows users to transform ideas into professional-looking handmade goods, with a market cap of $1.35 billion.

Operations: Cricut generates revenue primarily through the sale of its creativity platform and related products. The company’s financial performance includes a net profit margin of 12.5%, reflecting its profitability after accounting for all expenses.

Cricut, a nimble player in the Consumer Durables sector, has shown impressive earnings growth of 40.2% over the past year, outpacing its industry. Trading at 45.3% below estimated fair value and debt-free for five years (previously at 49.9%), it presents a compelling valuation case. Despite significant insider selling recently, Cricut repurchased 1.41 million shares worth US$8.86 million between May and June 2024, indicating confidence in its future prospects amidst recent index additions like Russell Small Cap Value Index.

NasdaqGS:CRCT Debt to Equity as at Sep 2024
NasdaqGS:CRCT Debt to Equity as at Sep 2024

Hovnanian Enterprises

Simply Wall St Value Rating: ★★★★☆☆

Overview: Hovnanian Enterprises, Inc., through its subsidiaries, designs, constructs, markets, and sells residential homes in the United States with a market cap of approximately $1.31 billion.

Operations: Hovnanian Enterprises generates revenue primarily from its Homebuilding segments, with the West region contributing $1.37 billion, the Northeast $989.39 million, and the Southeast $474.97 million. The Financial Services segment adds an additional $70.40 million to their revenue stream.