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Three Undiscovered Gems in the US Market

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In the last week, the United States market has stayed flat, yet it is up 24% over the past year with earnings forecast to grow by 15% annually. In such a dynamic environment, identifying stocks that are not only resilient but also poised for growth can uncover potential opportunities in lesser-known companies.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Morris State Bancshares

10.20%

-0.28%

6.97%

★★★★★★

Wilson Bank Holding

NA

7.87%

8.22%

★★★★★★

Franklin Financial Services

173.21%

5.55%

-1.86%

★★★★★★

Cashmere Valley Bank

15.51%

5.80%

3.51%

★★★★★★

Oakworth Capital

31.49%

14.78%

4.46%

★★★★★★

Teekay

NA

-3.71%

60.91%

★★★★★★

Parker Drilling

46.05%

0.86%

52.25%

★★★★★★

ASA Gold and Precious Metals

NA

7.11%

-35.88%

★★★★★☆

FRMO

0.08%

38.78%

45.85%

★★★★★☆

Pure Cycle

5.15%

-2.61%

-6.23%

★★★★★☆

Click here to see the full list of 269 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

Tiptree

Simply Wall St Value Rating: ★★★★★☆

Overview: Tiptree Inc. operates through its subsidiaries to provide specialty insurance products and related services primarily in the United States, with a market capitalization of $754.83 million.

Operations: The company's primary revenue stream is from its insurance segment, generating $1.92 billion. The mortgage segment contributes $57.18 million to the overall revenue.

Tiptree's recent performance paints a promising picture with earnings growth of 411% over the past year, significantly outpacing the insurance industry's 36%. This growth is supported by high-quality earnings and a satisfactory net debt to equity ratio of 5%, indicating financial stability. The company's interest payments are well-covered by EBIT at 5.5 times, reflecting strong operational efficiency. Despite no share repurchases recently, Tiptree distributed a special dividend of $0.25 per share in December 2024, alongside its regular quarterly dividend of $0.06 per share, showcasing its commitment to returning value to shareholders.

NasdaqCM:TIPT Earnings and Revenue Growth as at Jan 2025
NasdaqCM:TIPT Earnings and Revenue Growth as at Jan 2025

Donegal Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Donegal Group Inc., with a market cap of $500.83 million, operates as an insurance holding company offering property and casualty insurance to both businesses and individuals.

Operations: Donegal Group generates revenue primarily from its Personal Lines and Commercial Lines segments, amounting to $389.62 million and $536.58 million respectively. Additionally, it earns $43.58 million from net investment income and has recorded investment gains of $6.97 million.