Undiscovered Gems with Promising Potential In January 2025

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As global markets continue to react to political developments and economic indicators, the S&P 500 has reached new heights amid optimism for softer tariffs and advancements in artificial intelligence. While large-cap stocks have generally outperformed their smaller-cap counterparts, there remains a fertile ground of opportunity within small-cap stocks that exhibit strong fundamentals and innovative potential.

Top 10 Undiscovered Gems With Strong Fundamentals

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%

★★★★★★

Natural Food International Holding

NA

2.49%

20.35%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Kenturn Nano. Tec

45.38%

9.73%

28.94%

★★★★★☆

ONEJOON

9.85%

24.95%

4.85%

★★★★★☆

Giant Heavy Machinery Service

17.81%

21.88%

48.77%

★★★★★☆

PAN Group

143.29%

15.75%

23.10%

★★★★☆☆

Petrolimex Insurance

32.25%

4.46%

7.91%

★★★★☆☆

Bhakti Multi Artha

45.21%

32.37%

-16.43%

★★★★☆☆

Click here to see the full list of 4664 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

One Software Technologies

Simply Wall St Value Rating: ★★★★★★

Overview: One Software Technologies Ltd offers software, hardware, and integration services with a market capitalization of ₪4.61 billion.

Operations: The company generates revenue primarily from three segments: Infrastructure and Computing Solutions (₪1.22 billion), Outsourcing of Business Processes and Technological Support Centers (₪317.30 million), and Technological Solutions and Services, Management Consulting, and Value-Added Services (₪2.41 billion).

In the tech landscape, One Software Technologies stands out with a robust financial profile and noteworthy growth metrics. Over the past year, earnings surged by 19%, surpassing industry averages. The company's debt to equity ratio has impressively decreased from 53% to 22% in five years, indicating prudent financial management. Trading at nearly 41% below estimated fair value suggests potential undervaluation. Moreover, its interest payments are well-covered by EBIT at a solid 18x coverage ratio. Despite recent delisting news due to inactivity on OTC Equity, its high-quality earnings and positive free cash flow remain strong points for consideration.

TASE:ONE Debt to Equity as at Jan 2025
TASE:ONE Debt to Equity as at Jan 2025

istyle

Simply Wall St Value Rating: ★★★★★★

Overview: istyle Inc. operates a beauty portal site called @cosme both in Japan and internationally, with a market cap of approximately ¥39.70 billion.