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Over the last 7 days, the Australian market has dropped 2.2%, yet it remains up 5.2% over the past year with earnings expected to grow by 13% annually in the coming years. In this dynamic environment, identifying promising stocks that are currently underappreciated can offer significant opportunities for investors looking to capitalize on future growth potential.
Top 10 Undiscovered Gems With Strong Fundamentals In Australia
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| Fiducian Group | NA | 9.94% | 6.00% | ★★★★★★ |
| Lycopodium | NA | 15.62% | 29.55% | ★★★★★★ |
| Sugar Terminals | NA | 2.34% | 2.64% | ★★★★★★ |
| Hearts and Minds Investments | NA | 18.39% | -3.93% | ★★★★★★ |
| SKS Technologies Group | NA | 31.29% | 43.27% | ★★★★★★ |
| BSP Financial Group | 4.92% | 6.74% | 5.29% | ★★★★★☆ |
| AMCIL | NA | 5.16% | 5.31% | ★★★★★☆ |
| A2B Australia | 15.83% | -7.78% | 25.44% | ★★★★☆☆ |
| Paragon Care | 340.88% | 28.05% | 68.37% | ★★★★☆☆ |
| Boart Longyear Group | 71.20% | 9.71% | 39.19% | ★★★★☆☆ |
Here's a peek at a few of the choices from the screener.
DroneShield
Simply Wall St Value Rating: ★★★★★★
Overview: DroneShield Limited develops, commercializes, and sells hardware and software technology for drone detection and security in Australia and the United States with a market cap of A$928.75 million.
Operations: DroneShield Limited generates revenue primarily from its Aerospace & Defense segment, amounting to A$55.08 million. The company has a market cap of A$928.75 million.
DroneShield has seen significant developments recently, becoming profitable last year and forecasting a 46.11% annual earnings growth. Trading at 82.2% below its estimated fair value, the company offers high-quality earnings without any debt concerns. A recent follow-on equity offering raised A$120 million through common stock at A$1.15 per share, indicating strong investor interest despite volatility in its share price over the past three months.
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Take a closer look at DroneShield's potential here in our health report.
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Assess DroneShield's past performance with our detailed historical performance reports.
Supply Network
Simply Wall St Value Rating: ★★★★★★
Overview: Supply Network Limited supplies aftermarket parts to the commercial vehicle industry in Australia and New Zealand, with a market cap of A$1.11 billion.
Operations: Supply Network Limited generates revenue primarily from the provision of aftermarket parts for the commercial vehicle market, amounting to A$278.41 million.
Supply Network Limited has shown robust performance with a profit after tax forecast of A$33.1 million for FY2024 and sales revenue projected at A$302.6 million. The company’s net debt to equity ratio stands at a satisfactory 6%, and its interest payments are comfortably covered by EBIT, with 23x coverage. Additionally, earnings grew by 27.9% over the past year, outpacing the industry average of 3%. Directors declared a fully franked dividend increase to 33 cents per share for shareholders.