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Undiscovered Gems With Potential To Shine In January 2025

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As global markets grapple with inflation fears and political uncertainties, small-cap stocks have notably underperformed their large-cap counterparts, with the Russell 2000 Index slipping into correction territory. Despite this challenging backdrop, opportunities remain for discerning investors who can identify stocks with strong fundamentals and growth potential that may be overlooked in a volatile market environment.

Top 10 Undiscovered Gems With Strong Fundamentals

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Zona Franca de Iquique

NA

7.94%

12.83%

★★★★★★

Eagle Financial Services

170.75%

12.30%

1.92%

★★★★★★

Wilson Bank Holding

NA

7.87%

8.22%

★★★★★★

Yuen Foong Yu Consumer Products

27.23%

0.46%

-3.46%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Standard Bank

0.13%

27.78%

30.36%

★★★★★★

Advancetek EnterpriseLtd

56.32%

41.67%

65.57%

★★★★★☆

AJIS

0.79%

1.12%

-12.92%

★★★★★☆

Arab Insurance Group (B.S.C.)

NA

-59.20%

20.33%

★★★★★☆

Krom Bank Indonesia

NA

40.04%

35.44%

★★★★☆☆

Click here to see the full list of 4628 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

Beijer Alma

Simply Wall St Value Rating: ★★★★☆☆

Overview: Beijer Alma AB (publ) is involved in component manufacturing and industrial trading across Sweden, the Nordic region, Europe, North America, Asia, and internationally with a market cap of approximately SEK9.97 billion.

Operations: Beijer Alma generates revenue primarily through its Lesjöfors segment, contributing SEK4.82 billion, and Beijer Tech segment, adding SEK2.25 billion.

Beijer Alma, a player in the machinery sector, has shown impressive performance with earnings growth of 44.5% over the past year, outpacing its industry peers. This Swedish company is trading at 7.3% below its estimated fair value, suggesting potential undervaluation. However, it carries a high net debt to equity ratio of 51.5%, which might be concerning for some investors despite interest payments being well-covered by EBIT at 4.3x coverage. Recent financials reveal significant improvements; net income surged to SEK 303 million from SEK 134 million year-on-year for Q3 2024 and basic EPS climbed to SEK 5.02 from SEK 2.22.

OM:BEIA B Debt to Equity as at Jan 2025
OM:BEIA B Debt to Equity as at Jan 2025

Jiangsu Zijin Rural Commercial BankLtd

Simply Wall St Value Rating: ★★★★★★

Overview: Jiangsu Zijin Rural Commercial Bank Co., Ltd offers a range of banking products and services to both personal and business customers, with a market cap of CN¥10.14 billion.