Exploring Undiscovered Swiss Stocks In July 2024

Amidst a general downturn in the Switzerland stock market, with the SMI index falling notably due to global economic uncertainties and weak earnings reports from major corporations, investors might find it prudent to look for potential opportunities in less explored areas of the market. In such times, focusing on smaller-cap stocks could offer unique advantages as these companies may have different growth potentials and risks compared to their larger counterparts.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

StarragTornos Group

12.77%

-2.98%

29.42%

★★★★★★

APG|SGA

NA

1.12%

-16.11%

★★★★★★

TX Group

0.96%

-2.25%

15.99%

★★★★★★

IVF Hartmann Holding

NA

1.26%

-4.29%

★★★★★★

Datacolor

NA

3.59%

30.14%

★★★★★★

Compagnie Financière Tradition

49.32%

1.35%

11.45%

★★★★★☆

SKAN Group

3.57%

40.44%

22.38%

★★★★★☆

naturenergie holding

9.95%

16.32%

40.54%

★★★★★☆

Elma Electronic

42.57%

2.00%

-1.74%

★★★★★☆

Bergbahnen Engelberg-Trübsee-Titlis

3.00%

-10.81%

-16.31%

★★★★☆☆

Click here to see the full list of 18 stocks from our SIX Swiss Exchange Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

APG|SGA

Simply Wall St Value Rating: ★★★★★★

Overview: APG|SGA SA specializes in offering advertising solutions, focusing mainly on the Swiss and Serbian markets, with a market capitalization of CHF 611.00 million.

Operations: The company primarily generates its revenue through the acquisition, sale, and management of advertising spaces, with a recent reported revenue of CHF 327.46 million. It incurs costs predominantly from the cost of goods sold (COGS) and operating expenses, which for the latest period were CHF 254.79 million and CHF 42.18 million respectively.

APG|SGA, a standout in the Swiss market, has demonstrated robust financial health with no debt for the past five years and a positive free cash flow. Recently, it outpaced its industry with a 14.6% earnings growth compared to the media sector's 11.7%. Despite an average annual earnings decline of 16.1% over five years, APG|SGa trades at 53.1% below its estimated fair value—a potential indicator of undervaluation. The company's strategic maneuvers include a notable M&A transaction where Neue ZüRcher Zeitung AG acquired a significant stake, enhancing APG|SGA’s market position and shareholder base.

SWX:APGN Earnings and Revenue Growth as at Jul 2024
SWX:APGN Earnings and Revenue Growth as at Jul 2024

TX Group

Simply Wall St Value Rating: ★★★★★★

Overview: TX Group AG is a Swiss multimedia company engaged in operating a diverse network of digital platforms and holdings, offering services ranging from information delivery to entertainment, with a market capitalization of CHF 1.75 billion.