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Undiscovered Gems in the United Kingdom to Watch This August 2024

In This Article:

The United Kingdom's market has recently faced headwinds, with the FTSE 100 index closing lower due to weak trade data from China and broader global economic concerns. Despite these challenges, there are still promising opportunities within the small-cap sector that may offer resilience and growth potential. In this article, we'll explore three undiscovered gems in the UK market that stand out amid current conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Andrews Sykes Group

NA

1.69%

3.16%

★★★★★★

Globaltrans Investment

15.40%

2.68%

16.51%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

London Security

0.31%

9.47%

7.41%

★★★★★★

M&G Credit Income Investment Trust

NA

-0.35%

1.18%

★★★★★★

Rights and Issues Investment Trust

NA

-3.68%

-4.07%

★★★★★★

FW Thorpe

3.34%

11.37%

9.41%

★★★★★☆

Goodwin

52.21%

9.26%

13.12%

★★★★★☆

BBGI Global Infrastructure

0.02%

6.58%

9.90%

★★★★★☆

Mountview Estates

16.64%

4.50%

-0.59%

★★★★☆☆

Click here to see the full list of 80 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

Yellow Cake

Simply Wall St Value Rating: ★★★★★★

Overview: Yellow Cake plc operates in the uranium sector and has a market cap of £1.18 billion.

Operations: Yellow Cake plc generates revenue primarily from its holdings of U3O8, valued at $735.02 million. The company focuses on long-term capital appreciation through these uranium assets.

Yellow Cake has shown a remarkable turnaround, reporting full-year revenue of US$735.02 million and net income of US$727.01 million, compared to a net loss of US$102.94 million the previous year. The company’s price-to-earnings ratio stands at 2.1x, significantly below the UK market average of 16.9x, indicating potential undervaluation. Despite recent dilution in shareholder value, Yellow Cake remains debt-free for five years and has become profitable this year with high levels of non-cash earnings.

AIM:YCA Earnings and Revenue Growth as at Aug 2024
AIM:YCA Earnings and Revenue Growth as at Aug 2024

Costain Group

Simply Wall St Value Rating: ★★★★★★

Overview: Costain Group PLC offers smart infrastructure solutions across the transportation, energy, water, and defense sectors in the United Kingdom and has a market cap of £292.39 million.

Operations: Revenue for Costain Group PLC comes primarily from the transportation sector (£900.30 million) and natural resources sector (£406.60 million).