Discover Sweden's Undiscovered Gems This August 2024

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As global markets react to anticipated interest rate cuts and small-cap stocks outperform their larger counterparts, the Swedish market presents a unique landscape for investors seeking undiscovered opportunities. With Sweden's Riksbank reducing borrowing costs and signaling further rate reductions, now is an opportune time to explore promising small-cap stocks that could benefit from these favorable economic conditions. In this context, identifying a good stock involves looking for companies with solid fundamentals, growth potential in their respective sectors, and resilience amid shifting monetary policies.

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%

★★★★★★

Duni

29.33%

10.78%

22.98%

★★★★★★

Bahnhof

NA

9.02%

15.02%

★★★★★★

AB Traction

NA

5.38%

5.19%

★★★★★★

Firefly

NA

15.90%

31.36%

★★★★★★

Creades

NA

-28.54%

-27.09%

★★★★★★

AQ Group

7.30%

14.89%

22.26%

★★★★★★

Byggmästare Anders J Ahlström Holding

NA

33.57%

-9.00%

★★★★★★

Linc

NA

56.01%

0.54%

★★★★★★

Solid Försäkringsaktiebolag

NA

7.64%

28.44%

★★★★☆☆

Click here to see the full list of 55 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Beijer Alma

Simply Wall St Value Rating: ★★★★☆☆

Overview: Beijer Alma AB (publ), with a market cap of SEK12.32 billion, operates in component manufacturing and industrial trading across Sweden, the Nordic region, Europe, North America, Asia, and internationally.

Operations: Beijer Alma AB (publ) generates revenue primarily from its Lesjöfors segment, contributing SEK 4.86 billion, and Beijer Tech segment, adding SEK 2.21 billion. The company has a market cap of SEK12.32 billion and operates internationally across multiple regions including Sweden, the Nordic region, Europe, North America, and Asia.

Beijer Alma, a notable player in the Swedish market, has shown promising performance with its recent earnings report. The company reported second-quarter sales of SEK 1.89 billion and net income of SEK 142 million, up from SEK 124 million last year. Over the past five years, their debt to equity ratio increased from 54.2% to 69.1%. Despite this, Beijer Alma's earnings growth of 8.2% outpaced the Machinery industry’s modest rise of 0.9%. Trading at nearly a third below its estimated fair value suggests potential upside for investors seeking value opportunities in Sweden's small-cap sector.