Undiscovered Swedish Gems with Promising Potential In October 2024

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As global markets navigate the complexities of geopolitical tensions and economic shifts, the Swedish market presents intriguing opportunities for investors seeking undiscovered gems. With small-cap stocks often overlooked amidst broader market movements, identifying companies with strong fundamentals and growth potential can be key to uncovering promising investments in this dynamic landscape.

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%

★★★★★★

Firefly

NA

16.04%

32.29%

★★★★★★

AB Traction

NA

5.38%

5.19%

★★★★★★

AQ Group

7.30%

14.89%

22.26%

★★★★★★

Svolder

NA

-22.68%

-24.17%

★★★★★★

Byggmästare Anders J Ahlström Holding

NA

30.31%

-9.00%

★★★★★★

Linc

NA

56.01%

0.54%

★★★★★★

Solid Försäkringsaktiebolag

NA

7.64%

28.44%

★★★★☆☆

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

Let's uncover some gems from our specialized screener.

Cloetta

Simply Wall St Value Rating: ★★★★★☆

Overview: Cloetta AB (publ) is a confectionery company with a market capitalization of approximately SEK7.21 billion.

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

Cloetta, a notable player in the confectionery sector, has shown robust earnings growth of 29.8% over the past year, outpacing the broader food industry. The company reported sales of SEK 4.13 billion for the first half of 2024, with net income rising to SEK 189 million from SEK 138 million a year ago. With its debt-to-equity ratio improving from 69.4% to 45.9% over five years and trading at nearly 17% below estimated fair value, Cloetta presents an intriguing investment narrative amidst its strategic reassessment efforts in manufacturing efficiency due to energy supply concerns.

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

Rusta

Simply Wall St Value Rating: ★★★★☆☆

Overview: Rusta AB (publ) is a retailer of home and leisure products operating in Sweden, Norway, Finland, and Germany with a market cap of approximately SEK12.04 billion.

Operations: The company generates revenue primarily from Sweden (SEK 6.43 billion), followed by Norway (SEK 2.39 billion) and other markets (SEK 2.41 billion).

Rusta, a dynamic player in the Swedish retail landscape, has demonstrated robust earnings growth of 47.5% over the past year, outpacing industry averages. The company trades at a substantial discount, 70.2% below its estimated fair value. With interest payments well-covered by EBIT at 3.5 times and more cash than total debt, Rusta's financial health appears solid. Recent expansions include new stores in Sweden and Norway, highlighting its commitment to growth across key markets.