Discovering Australia's Undiscovered Gems for September 2024

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The Australian market has shown resilience with the ASX200 closing up 0.3% at 8,099.9 points, driven by strong performances in the Materials and Real Estate sectors. Despite some drag from Financials, there are still promising opportunities to be found among small-cap stocks. In this environment, identifying a good stock often means looking for companies that can capitalize on sector-specific strengths or unique market conditions. Here are three undiscovered gems in Australia that could offer potential growth based on current trends and economic indicators.

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%

★★★★★★

Sugar Terminals

NA

3.14%

3.53%

★★★★★★

Bisalloy Steel Group

0.95%

10.27%

24.14%

★★★★★★

Lycopodium

NA

17.22%

33.85%

★★★★★★

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.

Underneath we present a selection of stocks filtered out by our screen.

Australian Ethical Investment

Simply Wall St Value Rating: ★★★★★★

Overview: Australian Ethical Investment Ltd is a publicly owned investment manager with a market cap of A$495.11 million.

Operations: The company generates revenue primarily from its funds management segment, which reported A$100.49 million in revenue.

Australian Ethical Investment (AEI) has demonstrated remarkable performance with earnings growth of 75.3% over the past year, outpacing the Capital Markets industry’s 17.7%. Despite a one-off A$8.6M loss impacting its financials to June 2024, AEI remains debt-free for five years and reported net income of A$11.53M on sales of A$100.49M for FY2024. The company announced a fully franked final dividend of 6 cents per share, bringing the annual dividend to 9 cents, up by 29%.

ASX:AEF Earnings and Revenue Growth as at Sep 2024
ASX:AEF Earnings and Revenue Growth as at Sep 2024

Catalyst Metals

Simply Wall St Value Rating: ★★★★☆☆

Overview: Catalyst Metals Limited explores and evaluates mineral properties in Australia, with a market cap of A$602.84 million.

Operations: Catalyst Metals Limited generates revenue primarily from its operations in Tasmania (A$75.08 million) and Western Australia (A$243.77 million).