Undiscovered Gems in Sweden for October 2024

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As global markets navigate the complexities of rising oil prices and geopolitical tensions, European indices have experienced notable declines, with the pan-European STOXX Europe 600 Index ending 1.80% lower amid cautious investor sentiment. In this environment, small-cap stocks in Sweden may present intriguing opportunities for investors seeking to uncover potential growth stories that align with resilient economic indicators and sectoral strengths. Identifying a good stock often involves looking for companies that demonstrate strong fundamentals and adaptability in challenging market conditions, making them well-positioned to capitalize on emerging trends despite broader market uncertainties.

Top 10 Undiscovered Gems With Strong Fundamentals In Sweden

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Softronic

NA

3.58%

7.41%

★★★★★★

Bahnhof

NA

9.02%

15.02%

★★★★★★

Duni

29.33%

10.78%

22.98%

★★★★★★

AB Traction

NA

5.38%

5.19%

★★★★★★

Firefly

NA

16.04%

32.29%

★★★★★★

AQ Group

7.30%

14.89%

22.26%

★★★★★★

Svolder

NA

-22.68%

-24.17%

★★★★★★

Byggmästare Anders J Ahlström Holding

NA

30.31%

-9.00%

★★★★★★

Creades

NA

-28.54%

-27.09%

★★★★★★

Linc

NA

56.01%

0.54%

★★★★★★

Click here to see the full list of 55 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

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

Cloetta

Simply Wall St Value Rating: ★★★★★☆

Overview: Cloetta AB (publ) is a confectionery company with a market capitalization of approximately SEK7.20 billion.

Operations: Cloetta generates revenue primarily from packaged branded goods, amounting to SEK6.24 billion, and candy not packed in small bags, contributing SEK2.22 billion.

Cloetta, a notable player in Sweden's confectionery sector, has seen its debt to equity ratio improve from 69.4% to 45.9% over five years, indicating stronger financial health. The company reported a net income of SEK 82 million for Q2 2024, up from SEK 73 million the previous year. Earnings per share rose to SEK 0.29 from SEK 0.26 year-on-year. Despite insider selling and halted greenfield investments due to energy supply risks, Cloetta maintains robust earnings growth at nearly double the industry rate over the past year (29.8%).

OM:CLA B Debt to Equity as at Oct 2024
OM:CLA B Debt to Equity as at Oct 2024

ITAB Shop Concept

Simply Wall St Value Rating: ★★★★★★

Overview: ITAB Shop Concept AB (publ) specializes in delivering solution design, customized shop fittings, checkouts, consumer flow solutions, professional lighting systems, and digitally interactive solutions for physical stores with a market cap of approximately SEK7.17 billion.