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Undiscovered Gems in Sweden Worth Exploring October 2024

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As the global markets react to China's robust stimulus measures and European hopes for interest rate cuts, Sweden's recent decision to lower its policy rate has sparked renewed interest in its small-cap sector. With the Riksbank cutting rates and potentially setting the stage for further reductions, investors are keenly observing how these economic shifts might uncover promising opportunities in lesser-known Swedish stocks. In this environment, identifying a good stock often involves looking at companies with strong fundamentals that can capitalize on favorable monetary policies and shifting market dynamics.

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%

★★★★★★

Duni

29.33%

10.78%

22.98%

★★★★★★

Bahnhof

NA

9.02%

15.02%

★★★★★★

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 56 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Creades

Simply Wall St Value Rating: ★★★★★★

Overview: Creades AB is a private equity and venture capital investment firm focusing on early to late-stage ventures, emerging growth, middle market, growth capital, and buyout investments with a market capitalization of SEK11.30 billion.

Operations: Creades generates revenue primarily from its investments in online retailers, amounting to SEK1.11 billion.

Creades, a Swedish financial player, showcases impressive growth with earnings surging by 129% over the past year, outpacing the industry average of 80%. Its price-to-earnings ratio stands attractively at 10.3x against the broader market's 23.4x. The company is debt-free and reported a notable turnaround in recent results; Q2 revenue reached SEK 833 million from a negative SEK 353 million last year, with net income at SEK 771 million compared to a loss previously.

OM:CRED A Earnings and Revenue Growth as at Oct 2024
OM:CRED A Earnings and Revenue Growth as at Oct 2024

ITAB Shop Concept

Simply Wall St Value Rating: ★★★★★★

Overview: ITAB Shop Concept AB (publ) specializes in offering 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 SEK6.95 billion.