Exploring 3 Undiscovered Gems In Sweden With Strong Potential

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Amid the global market's reaction to the Federal Reserve's recent rate cut, smaller-cap indexes have shown notable resilience, even though they remain below their previous peaks. This environment presents an intriguing backdrop for exploring lesser-known stocks with strong potential in Sweden. In this article, we will highlight three undiscovered gems in Sweden that demonstrate qualities of a good stock: solid fundamentals, growth potential, and resilience amid broader economic shifts.

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%

★★★★★★

Firefly

NA

16.04%

32.29%

★★★★★★

AB Traction

NA

5.38%

5.19%

★★★★★★

Creades

NA

-28.54%

-27.09%

★★★★★★

Svolder

NA

-22.68%

-24.17%

★★★★★★

Byggmästare Anders J Ahlström Holding

NA

30.31%

-9.00%

★★★★★★

Linc

NA

56.01%

0.54%

★★★★★★

Solid Försäkringsaktiebolag

NA

7.64%

28.44%

★★★★☆☆

Click here to see the full list of 59 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Clas Ohlson

Simply Wall St Value Rating: ★★★★★★

Overview: Clas Ohlson AB (publ) is a retail company that sells hardware, electrical, multimedia, home, and leisure products in Sweden, Norway, Finland, and internationally with a market cap of SEK10.58 billion.

Operations: Clas Ohlson AB (publ) generates revenue primarily through its retail segment, amounting to SEK10.66 billion. The company's net profit margin is a key financial metric to consider when evaluating its profitability.

Clas Ohlson, a Swedish retailer, has shown impressive financial health with no debt compared to five years ago when its debt-to-equity ratio was 6.5%. The company reported first-quarter sales of SEK 2.62 billion and net income of SEK 145.8 million, up from a loss of SEK 26.4 million last year. Its earnings growth over the past year was an astounding 281.8%, significantly outpacing the specialty retail industry’s average growth rate of 21%.

OM:CLAS B Debt to Equity as at Sep 2024
OM:CLAS B Debt to Equity as at Sep 2024

engcon

Simply Wall St Value Rating: ★★★★★☆

Overview: engcon AB (publ) designs, produces, and sells excavator tools globally with a market cap of SEK17.94 billion.

Operations: engcon AB (publ) generates revenue primarily from the construction machinery and equipment segment, amounting to SEK1.54 billion. The company's net profit margin is denoted in percentage (%).