Three Swedish Undiscovered Gems To Enhance Your Portfolio

In This Article:

As global markets experience a mix of highs and challenges, with European indices showing moderate gains amid hopes for economic stimulus, the spotlight turns to Sweden's market potential. In this dynamic environment, identifying promising small-cap stocks can offer unique opportunities for portfolio enhancement by capitalizing on innovative growth sectors and resilient business models.

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

-25.97%

-24.74%

★★★★★★

Byggmästare Anders J Ahlström Holding

NA

30.31%

-9.00%

★★★★★★

Svolder

NA

-22.68%

-24.17%

★★★★★★

Linc

NA

56.01%

0.54%

★★★★★★

Solid Försäkringsaktiebolag

NA

7.64%

28.44%

★★★★☆☆

Click here to see the full list of 53 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

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

Clas Ohlson

Simply Wall St Value Rating: ★★★★★★

Overview: Clas Ohlson AB (publ) is a retail company that offers hardware, electrical, multimedia, home, and leisure products across Sweden, Norway, Finland, and internationally with a market cap of approximately SEK11.02 billion.

Operations: Clas Ohlson generates revenue primarily from its retail specialty segment, amounting to SEK10.66 billion.

Clas Ohlson, a notable player in the Swedish retail sector, has shown impressive financial health with no debt compared to a 6.5% debt-to-equity ratio five years ago. Its earnings surged by 282% over the past year, outpacing industry growth of 20%. Recent sales figures reflect robust performance, reporting SEK 4.45 billion year-to-date against SEK 3.82 billion previously. The company trades at an attractive valuation, approximately 64% below estimated fair value and offers high-quality earnings without interest payment concerns due to its debt-free status.

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

OEM International

Simply Wall St Value Rating: ★★★★★★

Overview: OEM International AB (publ), along with its subsidiaries, offers products and systems for industrial applications and has a market capitalization of SEK16.17 billion.

Operations: The company generates revenue primarily from Sweden (SEK 3.31 billion), with additional contributions from regions including Finland, the Baltic States, and China (SEK 1.03 billion), as well as Denmark, Norway, the British Isles, and East Central Europe (SEK 1.21 billion). The financial data reflects eliminations of SEK -514.60 million and segment adjustments of SEK 136.10 million in its reporting structure.