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Discovering Undiscovered Gems in the United States for August 2024

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The market has climbed by 3.6% over the past week, with every sector up and the Information Technology sector leading the way. The market is up 20% over the last 12 months, and earnings are expected to grow by 15% per annum over the next few years. In this favorable environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding for investors seeking undiscovered gems in the United States.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Morris State Bancshares

10.20%

-0.32%

6.73%

★★★★★★

Jiayin Group

NA

23.46%

30.79%

★★★★★★

QDM International

NA

123.47%

83.88%

★★★★★★

Teekay

NA

-6.48%

55.79%

★★★★★★

Mission Bancorp

25.37%

16.23%

20.16%

★★★★★★

Omega Flex

NA

1.31%

3.88%

★★★★★★

First Northern Community Bancorp

NA

7.12%

10.04%

★★★★★★

CSP

2.17%

-5.57%

73.73%

★★★★★☆

Valhi

38.71%

2.57%

-19.76%

★★★★★☆

FRMO

0.19%

6.49%

15.82%

★★★★☆☆

Click here to see the full list of 221 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

BitFuFu

Simply Wall St Value Rating: ★★★★☆☆

Overview: BitFuFu Inc., with a market cap of $775.41 million, offers digital asset mining and cloud-mining services in Singapore.

Operations: With a market cap of $775.41 million, BitFuFu generates revenue primarily from its Internet Software & Services segment, amounting to $370.55 million.

BitFuFu, a promising player in the software industry, saw its earnings skyrocket by 2285.5% over the past year, far outpacing the industry's average growth of 23.3%. With a price-to-earnings ratio of 18.9x, it offers better value compared to the industry average of 34.3x. Despite high volatility in its share price recently and not being free cash flow positive, BitFuFu's net debt to equity ratio stands at a satisfactory 13.1%, with interest payments well covered by EBIT (4.5x coverage). Recent board changes include appointing Huaiyu Liu as an independent director and audit committee chairperson, bringing over two decades of finance experience to strengthen governance and strategic planning.

NasdaqCM:FUFU Debt to Equity as at Aug 2024
NasdaqCM:FUFU Debt to Equity as at Aug 2024

Sezzle

Simply Wall St Value Rating: ★★★★★☆

Overview: Sezzle Inc. is a technology-enabled payments company operating mainly in the United States and Canada, with a market cap of $662.79 million.

Operations: Sezzle generates revenue primarily through lending to end-customers, amounting to $192.69 million. The company's net profit margin is a key financial metric to consider.