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As global markets show signs of recovery and hopes for a "soft landing" in the U.S. economy grow, European indices have also posted strong gains, driven by optimism surrounding potential interest rate cuts. Amid this positive sentiment, small-cap stocks in Sweden present intriguing opportunities for investors seeking undiscovered gems. In the current market environment, a good stock typically exhibits strong fundamentals, resilience to economic fluctuations, and promising growth prospects—qualities that are particularly relevant when exploring lesser-known Swedish companies poised for success.
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 | 9.11% | 15.30% | ★★★★★★ |
| AB Traction | NA | 5.38% | 5.19% | ★★★★★★ |
| Firefly | NA | 15.31% | 29.94% | ★★★★★★ |
| Creades | NA | -28.54% | -27.09% | ★★★★★★ |
| Linc | NA | 56.01% | 0.54% | ★★★★★★ |
| Rederiaktiebolaget Gotland | NA | -14.29% | 18.06% | ★★★★★★ |
| AQ Group | 7.30% | 14.89% | 22.26% | ★★★★★★ |
| Solid Försäkringsaktiebolag | NA | 7.64% | 28.44% | ★★★★☆☆ |
Underneath we present a selection of stocks filtered out by our screen.
engcon
Simply Wall St Value Rating: ★★★★★☆
Overview: Engcon AB (publ) designs, produces, and sells excavator tools across various international markets with a market cap of SEK16.42 billion.
Operations: Engcon AB (publ) generated SEK1.54 billion in revenue from its construction machinery and equipment segment. The company reported a net profit margin of 15.6%.
engcon, a small cap player in Sweden's machinery sector, reported SEK 450 million in sales for Q2 2024, down from SEK 508 million last year. Net income also fell to SEK 55 million from SEK 83 million. Despite high-quality earnings and satisfactory debt levels (8.5% net debt to equity), the company faced a significant earnings drop (-60.6%) over the past year. Looking ahead, earnings are forecasted to grow at an impressive rate of nearly 44% annually.
RaySearch Laboratories
Simply Wall St Value Rating: ★★★★★★
Overview: RaySearch Laboratories AB (publ) is a medical technology company that provides software solutions for cancer care across the Americas, Europe, Africa, the Asia-Pacific, and the Middle East with a market cap of SEK5.09 billion.
Operations: RaySearch Laboratories generates revenue primarily from its software solutions for cancer care, with a market cap of SEK5.09 billion. The company's net profit margin has shown notable trends over recent periods, reflecting its financial performance and operational efficiency.