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Three Undiscovered Gems To Enhance Your Investment Portfolio

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As global markets react to the recent U.S. election results, small-cap stocks have shown notable movement, with the Russell 2000 Index leading gains despite remaining slightly below its record high. Amidst these dynamic market conditions, identifying promising small-cap stocks can offer investors opportunities to diversify and potentially enhance their portfolios, especially when focusing on companies poised for growth in a shifting economic landscape.

Top 10 Undiscovered Gems With Strong Fundamentals

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Omega Flex

NA

0.39%

2.57%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Moury Construct

2.93%

10.28%

30.93%

★★★★★☆

Kappa Create

83.86%

0.22%

14.37%

★★★★★☆

Wema Bank

53.09%

32.38%

56.06%

★★★★☆☆

Loadstar Capital K.K

259.53%

16.85%

21.57%

★★★★☆☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

Click here to see the full list of 4673 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Inkeverse Group

Simply Wall St Value Rating: ★★★★★★

Overview: Inkeverse Group Limited is an investment holding company that operates mobile live streaming platforms in the People’s Republic of China, with a market capitalization of HK$2.21 billion.

Operations: Inkeverse Group generates revenue primarily through its live streaming business, which reported CN¥7.25 billion in revenue. The company's financial performance is influenced by its ability to manage costs associated with operating these platforms.

Inkeverse Group, a relatively smaller player in the market, showcases impressive earnings growth of 136.1% over the past year, outpacing the Interactive Media and Services industry which saw a 22.8% drop. With a price-to-earnings ratio of 7.7x compared to Hong Kong's market average of 10x, it seems undervalued. Despite reporting sales of CNY 3.53 billion for the first half of 2024, net income fell to CNY 120.6 million from CNY 190.35 million last year—pointing to potential operational challenges or increased expenses impacting profitability despite positive free cash flow and debt-free status enhancing financial stability.

SEHK:3700 Debt to Equity as at Nov 2024
SEHK:3700 Debt to Equity as at Nov 2024

Beijing Lier High-temperature MaterialsLtd

Simply Wall St Value Rating: ★★★★☆☆

Overview: Beijing Lier High-temperature Materials Co., Ltd. specializes in the production of high-temperature resistant materials and has a market cap of CN¥4.74 billion.