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3 Hidden Swedish Stocks with Promising Potential

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As global markets experience shifts driven by China's stimulus measures and economic indicators suggest potential interest rate cuts in Europe, Sweden's market landscape is also evolving with the Riksbank recently lowering its policy rate. In this context of changing economic conditions, identifying hidden gems within the Swedish stock market can offer intriguing opportunities for investors looking to navigate these dynamic times.

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

9.02%

15.02%

★★★★★★

Firefly

NA

16.04%

32.29%

★★★★★★

AB Traction

NA

5.38%

5.19%

★★★★★★

AQ Group

7.30%

14.89%

22.26%

★★★★★★

Svolder

NA

-22.68%

-24.17%

★★★★★★

Byggmästare Anders J Ahlström Holding

NA

30.31%

-9.00%

★★★★★★

Creades

NA

-28.54%

-27.09%

★★★★★★

Linc

NA

56.01%

0.54%

★★★★★★

Solid Försäkringsaktiebolag

NA

7.64%

28.44%

★★★★☆☆

Click here to see the full list of 57 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Creades

Simply Wall St Value Rating: ★★★★★★

Overview: Creades AB is a private equity and venture capital investment firm focusing on early, mid, and late-stage ventures, emerging growth, middle market, growth capital, and buyout investments with a market cap of SEK11.37 billion.

Operations: Creades generates revenue primarily from its investments in online retailers, amounting to SEK1.11 billion.

Creades, a nimble player in the Swedish market, has shown remarkable resilience with a recent earnings surge of SEK 771 million for Q2 2024, bouncing back from a net loss of SEK 299 million last year. The company boasts high-quality earnings and operates debt-free, which eliminates concerns about interest coverage. Its price-to-earnings ratio stands at an attractive 10.4x compared to the broader market's 23.4x, suggesting potential value for investors seeking growth opportunities in financials.

OM:CRED A Earnings and Revenue Growth as at Oct 2024
OM:CRED A Earnings and Revenue Growth as at Oct 2024

ITAB Shop Concept

Simply Wall St Value Rating: ★★★★★★

Overview: ITAB Shop Concept AB (publ) specializes in offering solution design, customized shop fittings, checkouts, consumer flow solutions, professional lighting systems, and digitally interactive solutions for physical stores with a market cap of approximately SEK7.10 billion.

Operations: ITAB generates revenue primarily from its Furniture & Fixtures segment, which accounts for SEK6.39 billion.