Undiscovered Gems Three Promising Small Caps To Watch

As global markets navigate geopolitical tensions and consumer spending concerns, small-cap stocks have been particularly impacted, with indices like the S&P 600 reflecting this volatility. Despite these challenges, the search for promising opportunities continues, as investors look for small-cap companies that demonstrate resilience and potential in a shifting economic landscape.

Top 10 Undiscovered Gems With Strong Fundamentals

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Wilson Bank Holding

NA

7.87%

8.22%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Sure Global Tech

NA

10.25%

20.35%

★★★★★★

Nofoth Food Products

NA

14.41%

31.88%

★★★★★★

Bonny Worldwide

37.80%

14.20%

37.87%

★★★★★★

CHT Security

NA

11.75%

35.75%

★★★★★★

Advancetek EnterpriseLtd

56.32%

41.67%

65.57%

★★★★★☆

Elite Color Environmental Resources Science & Technology

30.80%

12.99%

1.83%

★★★★★☆

China Container Terminal

49.96%

2.83%

22.37%

★★★★☆☆

Kinpo Electronics

126.70%

5.77%

32.85%

★★★★☆☆

Click here to see the full list of 4760 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Lontium Semiconductor

Simply Wall St Value Rating: ★★★★★★

Overview: Lontium Semiconductor Corporation develops and markets semiconductor products globally, with a market cap of CN¥12.62 billion.

Operations: The company generates revenue primarily through the sale of semiconductor products. It has reported a net profit margin of 15.3%, indicating its profitability relative to total revenue.

Lontium Semiconductor, a nimble player in the semiconductor space, showcases impressive earnings growth of 40.6% over the past year, outpacing the industry’s 13.9%. This debt-free entity has maintained this status for five years, eliminating concerns about interest coverage. Despite its volatile share price recently, Lontium remains free cash flow positive with a notable US$65.67 million as of September 2024 and is forecasted to grow earnings by 39.75% annually. The upcoming shareholders meeting on December 20th might provide further insights into strategic directions and potential opportunities for investors to consider.

SHSE:688486 Earnings and Revenue Growth as at Feb 2025
SHSE:688486 Earnings and Revenue Growth as at Feb 2025

Shandong Dawn PolymerLtd

Simply Wall St Value Rating: ★★★★☆☆

Overview: Shandong Dawn Polymer Co., Ltd. engages in the development, production, sale, and servicing of thermoplastic elastomers, modified plastics, master batches, and other products both in China and internationally with a market cap of CN¥6.30 billion.