Discovering Undiscovered Gems in Australia This August 2024

In This Article:

In the last week, the Australian market has stayed flat, although the Information Technology sector saw an impressive 11% gain. With the market up 12% over the past year and earnings forecast to grow by 14% annually, identifying promising stocks becomes crucial for capitalizing on these trends.

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%

★★★★★★

Schaffer

24.98%

2.97%

-6.23%

★★★★★★

Sugar Terminals

NA

2.34%

2.64%

★★★★★★

Plato Income Maximiser

NA

11.43%

14.26%

★★★★★★

SKS Technologies Group

NA

34.65%

47.39%

★★★★★★

Hearts and Minds Investments

NA

18.39%

-3.93%

★★★★★★

AMCIL

NA

5.16%

5.31%

★★★★★☆

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.

Let's uncover some gems from our specialized screener.

AMCIL

Simply Wall St Value Rating: ★★★★★☆

Overview: Amcil Limited is a publicly owned investment manager with a market cap of A$368.99 million.

Operations: Amcil Limited generates its revenue primarily from investments, amounting to A$10.13 million.

AMCIL Limited, a small cap investment company in Australia, recently announced a share repurchase program to buy back up to 31.13 million shares, representing 9.9% of its issued capital. The company reported earnings for the year ended June 30, 2024, with net income at A$7.48 million and basic earnings per share at A$0.0238. AMCIL is debt-free and has consistently generated positive free cash flow over the past five years, showcasing strong financial health despite a slight -1% earnings growth last year compared to the industry average of 4.7%.

ASX:AMH Earnings and Revenue Growth as at Aug 2024
ASX:AMH Earnings and Revenue Growth as at Aug 2024

DroneShield

Simply Wall St Value Rating: ★★★★★★

Overview: DroneShield Limited develops, commercializes, and sells hardware and software technology for drone detection and security in Australia and the United States, with a market cap of A$1.11 billion.

Operations: DroneShield generates revenue primarily from its Aerospace & Defense segment, amounting to A$55.08 million. The company's financial performance is reflected in its market cap of A$1.11 billion.

DroneShield, a promising player in the Aerospace & Defense sector, recently turned profitable and forecasts earnings growth of 40.21% annually. Despite high volatility over the past three months, DRO remains debt-free and has been so for five years. The company completed an equity offering worth A$120 million in August 2024, issuing 104 million shares at A$1.15 each. Notably, shareholders experienced dilution last year but DRO's high-quality earnings and free cash flow positivity highlight its potential for future growth.