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3 Undiscovered Gems In Australia With Strong Potential

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Over the last 7 days, the Australian market has dropped 1.3%, but it remains up by 11% over the past year with earnings forecasted to grow by 12% annually. In this dynamic environment, identifying stocks with strong potential involves looking for companies that are not only underappreciated but also positioned to benefit from robust earnings growth.

Top 10 Undiscovered Gems With Strong Fundamentals In Australia

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Fiducian Group

NA

9.94%

6.48%

★★★★★★

Lycopodium

NA

17.22%

33.85%

★★★★★★

Bisalloy Steel Group

0.95%

10.27%

24.14%

★★★★★★

Sugar Terminals

NA

2.34%

2.64%

★★★★★★

BSP Financial Group

7.53%

7.31%

4.10%

★★★★★☆

Steamships Trading

33.60%

4.17%

3.90%

★★★★★☆

AMCIL

NA

5.16%

5.31%

★★★★★☆

Hearts and Minds Investments

1.00%

18.81%

20.95%

★★★★☆☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Boart Longyear Group

71.20%

9.71%

39.19%

★★★★☆☆

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

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

BSP Financial Group

Simply Wall St Value Rating: ★★★★★☆

Overview: BSP Financial Group Limited offers commercial banking and finance services to individual and corporate customers across Papua New Guinea, the Solomon Islands, Fiji, the Cook Islands, Samoa, Tonga, Vanuatu, Cambodia, and Laos with a market cap of A$2.96 billion.

Operations: BSP Financial Group Limited generates revenue primarily from its PNG Bank segment (PGK 2133.48 million) and Pacific Markets segment (PGK 638.68 million). The company also earns from Non-Bank Entities, contributing PGK 112.27 million to its total revenue.

BSP Financial Group, with total assets of PGK37.4B and equity of PGK4.3B, reported net income of PGK520M for H1 2024. Total deposits stand at PGK30B while loans are at PGK16.5B. The bank has a high level of bad loans (4%) but a sufficient allowance for bad loans (108%). Trading 3.8% below fair value, BSP's liabilities are primarily low-risk, sourced from customer deposits (91%). Negative earnings growth (-11.8%) contrasts with the industry average (-5.9%).

ASX:BFL Debt to Equity as at Sep 2024
ASX:BFL Debt to Equity as at Sep 2024

K&S

Simply Wall St Value Rating: ★★★★☆☆

Overview: K&S Corporation Limited operates in the transportation, logistics, warehousing, and fuel distribution sectors across Australia and New Zealand with a market cap of A$496.76 million.

Operations: K&S Corporation Limited generates revenue primarily from Australian Transport (A$582.80 million), Fuel (A$230.79 million), and New Zealand Transport (A$72.93 million). The company's net profit margin is a key indicator to consider when evaluating its financial performance.