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Hidden Opportunities in Undiscovered Gems This December 2024

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As the year draws to a close, global markets have experienced mixed performances, with major U.S. stock indexes posting moderate gains despite declining consumer confidence and manufacturing indicators. In this climate of fluctuating economic signals, small-cap stocks present unique opportunities for investors seeking hidden gems that may offer growth potential amid broader market uncertainties. Identifying these promising stocks involves looking for companies with strong fundamentals and innovative strategies that can thrive even when larger economic trends are in flux.

Top 10 Undiscovered Gems With Strong Fundamentals

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Canal Shipping Agencies

NA

8.92%

22.01%

★★★★★★

Suez Canal Company for Technology Settling (S.A.E)

NA

22.31%

13.60%

★★★★★★

Philippine Savings Bank

NA

5.49%

20.73%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Formula Systems (1985)

37.70%

9.99%

13.08%

★★★★★★

Aesler Grup Internasional

NA

-17.61%

-40.21%

★★★★★★

Likhami Consulting

NA

1.68%

-12.74%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Y.D. More Investments

69.32%

30.27%

27.89%

★★★★★☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Click here to see the full list of 4628 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

Deva Holding

Simply Wall St Value Rating: ★★★★★☆

Overview: Deva Holding A.S. is a Turkish company that manufactures, markets, and sells pharmaceutical products with a market capitalization of TRY15.41 billion.

Operations: Deva Holding's primary revenue stream is from its Human Pharma segment, generating TRY10.50 billion, with additional contributions from Veterinary Products at TRY429.85 million.

Deva Holding, a notable player in the pharmaceuticals sector, has seen its earnings soar by 860% over the past year, outpacing industry growth of 7%. Despite this impressive performance, the company faces challenges with interest payments not well covered by EBIT at just 1.1x. Its net debt to equity ratio sits comfortably at 17.5%, having improved from 81% five years ago. However, recent financials show a TRY 267 million net loss for Q3 compared to TRY 575 million last year. The price-to-earnings ratio stands attractively low at just five times against the market's average of nearly sixteen times.

IBSE:DEVA Earnings and Revenue Growth as at Dec 2024
IBSE:DEVA Earnings and Revenue Growth as at Dec 2024

Tomson Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Tomson Group Limited is an investment holding company involved in property development and investment, hospitality and leisure, securities trading, and media and entertainment operations across Hong Kong, Macau, and Mainland China with a market capitalization of approximately HK$5.91 billion.