Undiscovered Gems In Switzerland To Watch This August 2024

The Switzerland market ended on a positive note on Wednesday, in line with most of Europe, amid expectations of a rate cut by the Federal Reserve in September. Despite technical issues halting trading twice, the benchmark SMI gained 35.42 points or 0.29% to close at 12,317.44. In this favorable environment, identifying promising small-cap stocks becomes crucial for investors seeking growth opportunities. Here are three undiscovered gems in Switzerland to watch this August 2024 that could potentially benefit from these market conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In Switzerland

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

APG|SGA

NA

1.12%

-16.11%

★★★★★★

TX Group

0.96%

-2.25%

15.99%

★★★★★★

IVF Hartmann Holding

NA

1.26%

-4.29%

★★★★★★

Datacolor

NA

3.59%

30.14%

★★★★★★

Burkhalter Holding

59.92%

17.59%

21.59%

★★★★★☆

Compagnie Financière Tradition

49.32%

1.35%

11.45%

★★★★★☆

naturenergie holding

9.95%

16.32%

40.54%

★★★★★☆

Elma Electronic

42.57%

2.00%

-1.74%

★★★★★☆

Jungfraubahn Holding

17.74%

3.55%

9.25%

★★★★☆☆

Bergbahnen Engelberg-Trübsee-Titlis

3.00%

-10.81%

-16.31%

★★★★☆☆

Click here to see the full list of 16 stocks from our SIX Swiss Exchange Undiscovered Gems With Strong Fundamentals screener.

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

IVF Hartmann Holding

Simply Wall St Value Rating: ★★★★★★

Overview: IVF Hartmann Holding AG, with a market cap of CHF328.66 million, supplies medical consumer goods both in Switzerland and internationally.

Operations: IVF Hartmann Holding generates revenue primarily from Infection Management (CHF54.18 million), Wound Care (CHF40.21 million), and Incontinence Management (CHF32.11 million).

IVF Hartmann Holding, a small cap in the medical equipment sector, boasts impressive earnings growth of 34.9% over the past year, outpacing the industry average of -2.4%. With no debt for five years and a price-to-earnings ratio of 21.7x—well below the industry average of 44.3x—the company presents strong financial health. However, it's worth noting that earnings have declined by 4.3% annually over the past five years despite high-quality past earnings and positive free cash flow.

SWX:VBSN Debt to Equity as at Aug 2024
SWX:VBSN Debt to Equity as at Aug 2024

VP Bank

Simply Wall St Value Rating: ★★★★★☆

Overview: VP Bank AG, with a market cap of CHF447.48 million, offers wealth management and investment consulting services to private and institutional investors in Liechtenstein, Europe, and internationally through its subsidiaries.