Undiscovered Gems in Canada to Watch This August 2024

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Over the last 7 days, the Canadian market has remained flat, though it is up 13% over the past year with earnings expected to grow by 16% per annum over the next few years. In this promising environment, identifying undiscovered gems can be key to capitalizing on growth opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In Canada

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

TWC Enterprises

6.74%

10.99%

25.68%

★★★★★★

Taiga Building Products

NA

6.05%

10.50%

★★★★★★

Amerigo Resources

12.87%

7.49%

12.97%

★★★★★☆

Tornado Global Hydrovacs

14.62%

24.52%

64.90%

★★★★★☆

Reconnaissance Energy Africa

NA

31.73%

-6.92%

★★★★★☆

Mako Mining

22.90%

38.12%

54.79%

★★★★★☆

Firan Technology Group

17.91%

3.75%

23.32%

★★★★★☆

Pizza Pizza Royalty

15.66%

3.64%

3.95%

★★★★☆☆

Queen's Road Capital Investment

7.20%

22.14%

22.20%

★★★★☆☆

Genesis Land Development

53.32%

25.58%

47.05%

★★★★☆☆

Click here to see the full list of 45 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener.

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

Hammond Power Solutions

Simply Wall St Value Rating: ★★★★★★

Overview: Hammond Power Solutions Inc., along with its subsidiaries, specializes in designing, manufacturing, and selling a range of transformers across Canada, the United States, Mexico, and India and has a market cap of CA$1.43 billion.

Operations: Hammond Power Solutions generates CA$754.37 million in revenue from the manufacture and sale of transformers across its operating regions.

Hammond Power Solutions, a promising player in the electrical industry, reported CAD 197.21 million in Q2 sales, up from CAD 172.45 million last year. Net income also rose to CAD 23.59 million from CAD 13.33 million previously. The company’s debt to equity ratio has improved significantly over five years from 27.7% to 5%. Trading at a substantial discount of 48% below its estimated fair value and showing an earnings growth rate of 12.3%, it surpasses the industry average of 6.5%.

TSX:HPS.A Debt to Equity as at Aug 2024
TSX:HPS.A Debt to Equity as at Aug 2024

Leon's Furniture

Simply Wall St Value Rating: ★★★★★★

Overview: Leon's Furniture Limited, together with its subsidiaries, operates as a retailer of home furnishings, mattresses, appliances, and electronics in Canada with a market cap of CA$2.05 billion.

Operations: Leon's generates revenue primarily from the sale of home furnishings, mattresses, appliances, and electronics amounting to CA$2.53 billion. The company's net profit margin is 6.5%.