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Undiscovered Gems in Australia Top Stocks to Watch This August 2024

In This Article:

In the last week, the Australian market has been flat, but it is up 10.0% over the past year with earnings forecast to grow by 12% annually. In this context, identifying stocks with strong growth potential and solid fundamentals can be particularly rewarding for investors looking to capitalize on these promising conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In Australia

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Fiducian Group

NA

9.94%

6.48%

★★★★★★

Lycopodium

NA

17.22%

33.85%

★★★★★★

Sugar Terminals

NA

2.34%

2.64%

★★★★★★

SKS Technologies Group

NA

34.65%

47.39%

★★★★★★

BSP Financial Group

7.53%

7.31%

4.10%

★★★★★☆

AMCIL

NA

5.16%

5.31%

★★★★★☆

K&S

16.07%

0.20%

33.40%

★★★★☆☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Hearts and Minds Investments

1.00%

18.81%

20.95%

★★★★☆☆

Boart Longyear Group

71.20%

9.71%

39.19%

★★★★☆☆

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

Here's a peek at a few of the choices from the screener.

DroneShield

Simply Wall St Value Rating: ★★★★★★

Overview: DroneShield Limited develops, commercializes, and sells hardware and software technology for drone detection and security in Australia and the United States, with a market cap of A$1.08 billion.

Operations: DroneShield Limited generates revenue primarily from its Aerospace & Defense segment, amounting to A$67.52 million. The company focuses on hardware and software technology for drone detection and security across Australia and the United States.

DroneShield has shown remarkable earnings growth of 612.7% over the past year, outpacing the Aerospace & Defense industry average of 15.4%. Despite this, its share price has been highly volatile in the last three months. The company reported sales of A$23.99 million for H1 2024, up from A$11.55 million a year ago; however, net loss widened to A$4.8 million from A$2.94 million previously. Notably, DroneShield is debt-free and recently completed a follow-on equity offering worth A$120 million.

ASX:DRO Earnings and Revenue Growth as at Aug 2024
ASX:DRO Earnings and Revenue Growth as at Aug 2024

Navigator Global Investments

Simply Wall St Value Rating: ★★★★★☆

Overview: Navigator Global Investments (ASX:NGI) is a fund management company operating in Australia with a market cap of A$838.03 million.

Operations: Navigator Global Investments generates revenue primarily from its Lighthouse segment, amounting to $95.93 million. The company also has a minor revenue contribution of $0.25 million from other corporate adjustments, bringing total revenues to approximately $96.18 million.