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Exploring Medical Facilities And 2 Other Canadian Small Caps With Strong Potential

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In the wake of a decisive U.S. election outcome, markets have experienced a significant rally, with investors now focusing on potential policy changes and their implications for economic growth. As the Canadian market navigates these shifts, small-cap stocks present intriguing opportunities for those looking to capitalize on strong fundamentals and promising growth prospects.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

TWC Enterprises

6.24%

12.63%

23.89%

★★★★★★

Reconnaissance Energy Africa

NA

15.28%

7.58%

★★★★★★

Grown Rogue International

24.92%

43.35%

67.95%

★★★★★☆

Mako Mining

22.90%

38.12%

54.79%

★★★★★☆

Maxim Power

25.01%

13.56%

17.14%

★★★★★☆

Petrus Resources

19.44%

17.20%

46.03%

★★★★☆☆

Queen's Road Capital Investment

7.20%

22.14%

22.20%

★★★★☆☆

Corby Spirit and Wine

75.89%

5.97%

-5.75%

★★★★☆☆

Genesis Land Development

47.40%

28.61%

52.30%

★★★★☆☆

DIRTT Environmental Solutions

58.73%

-5.34%

-5.43%

★★★★☆☆

Click here to see the full list of 42 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

Let's dive into some prime choices out of from the screener.

Medical Facilities

Simply Wall St Value Rating: ★★★★★☆

Overview: Medical Facilities Corporation, with a market cap of CA$352.17 million, owns and operates specialty hospitals and ambulatory surgery centers in the United States through its subsidiaries.

Operations: The company generates revenue primarily from its healthcare facilities and services, amounting to $441.27 million.

Medical Facilities has demonstrated impressive earnings growth of 265.2% over the past year, significantly outpacing the healthcare industry's 11.8%. Trading at a remarkable 90.7% below its estimated fair value, it presents an attractive proposition for investors seeking undervalued opportunities. The company's debt to equity ratio has improved from 105.7% to 48.9% over five years, indicating prudent financial management. Recent earnings reports show a turnaround with net income reaching US$7.25 million in Q3 compared to a loss last year, while also completing share buybacks worth US$12.08 million since November 2023, enhancing shareholder value.

TSX:DR Earnings and Revenue Growth as at Nov 2024
TSX:DR Earnings and Revenue Growth as at Nov 2024

Hammond Power Solutions

Simply Wall St Value Rating: ★★★★★★

Overview: Hammond Power Solutions Inc. designs, manufactures, and sells transformers across Canada, the United States, Mexico, and India with a market capitalization of CA$1.47 billion.