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Unveiling Undiscovered Gems with Potential in January 2025

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As global markets navigate a mixed start to the new year, with U.S. indices showing resilience despite economic uncertainties such as a contracting Chicago PMI and revised GDP forecasts, investors are increasingly focused on uncovering opportunities within the small-cap sector. In this environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding, especially when broader market sentiment presents both challenges and openings for discerning investors.

Top 10 Undiscovered Gems With Strong Fundamentals

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Zona Franca de Iquique

NA

7.94%

12.83%

★★★★★★

Ovostar Union

0.01%

10.19%

49.85%

★★★★★★

Tianyun International Holdings

10.09%

-5.59%

-9.92%

★★★★★★

Interactive Digital Technologies

1.30%

6.10%

4.63%

★★★★★☆

Evergent Investments

5.49%

1.15%

8.81%

★★★★★☆

Intellego Technologies

12.32%

73.44%

78.22%

★★★★★☆

Transcorp Power

46.33%

114.79%

152.92%

★★★★★☆

MIA Teknoloji Anonim Sirketi

17.47%

61.65%

67.97%

★★★★★☆

A2B Australia

15.83%

-7.78%

25.44%

★★★★☆☆

Realia Business

38.02%

10.17%

1.26%

★★★★☆☆

Click here to see the full list of 4665 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

Linc

Simply Wall St Value Rating: ★★★★★★

Overview: Linc AB is a private equity and venture capital firm focusing on early and mature stage investments in pharmaceutical, life-science, and med-tech companies, with a market cap of approximately SEK5.25 billion.

Operations: Linc AB generates revenue primarily from its listed holdings, amounting to SEK1.55 billion, with a smaller contribution from unlisted holdings at SEK14.88 million.

Linc, a small cap player in the capital markets, stands out with its impressive earnings growth of 585.3%, significantly surpassing the industry average of 93.7%. Despite being debt-free and boasting a low price-to-earnings ratio of 3.3x compared to Sweden's market average of 23.3x, it faces challenges like significant insider selling recently and being dropped from the OMX Nordic All-Share Index. The company reported a net income surge to SEK 1,090 million for nine months ending September 2024, up from SEK 129 million last year, yet quarterly revenue dipped to SEK 18 million from SEK 28 million previously.

OM:LINC Earnings and Revenue Growth as at Jan 2025
OM:LINC Earnings and Revenue Growth as at Jan 2025

Al Majed for Oud

Simply Wall St Value Rating: ★★★★★★

Overview: Al Majed for Oud Company operates in the wholesale and retail perfume trade across Saudi Arabia and the Gulf countries, with a market capitalization of SAR3.74 billion.