The United States market has been flat over the last week but is up 38% over the past year, with earnings forecast to grow by 15% annually. In this dynamic environment, identifying stocks that offer strong growth potential and are yet to be widely recognized can provide unique opportunities for investors seeking to capitalize on emerging trends.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 224 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

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

Red Violet

Simply Wall St Value Rating: ★★★★★★

Overview: Red Violet, Inc. is a software and services company that focuses on using proprietary technologies and analytical capabilities to provide identity intelligence solutions in the United States, with a market cap of approximately $425.27 million.

Operations: Red Violet generates revenue primarily from its data processing segment, which amounts to $67.47 million. The company's market cap is approximately $425.27 million.

Red Violet, a nimble player in the software sector, has been making waves with its impressive earnings growth of 462.3% over the past year, outpacing the industry average of 23.6%. Despite forecasts suggesting a decline in earnings by an average of 63.5% annually for the next three years, it remains debt-free with high-quality earnings and free cash flow positivity. The company recently reported Q2 sales at US$19.06 million and net income at US$2.64 million, both up from last year’s figures. Additionally, Red Violet repurchased 15,804 shares worth US$0.29 million this quarter as part of its ongoing buyback program.

• Delve into the full analysis health report here for a deeper understanding of Red Violet.

• Explore historical data to track Red Violet's performance over time in our Past section.

Innodata

Simply Wall St Value Rating: ★★★★★★

Overview: Innodata Inc. is a global data engineering company with operations in the United States, the United Kingdom, the Netherlands, Canada, and other international locations, and it has a market capitalization of approximately $544.99 million.

Operations: Innodata generates revenue primarily from its Digital Data Solutions (DDS) segment, which includes Docgenix, contributing $80.77 million. The Agility and Synodex segments add $19.18 million and $7.39 million, respectively, to the overall revenue stream.

Innodata, a nimble player in data engineering, is showing impressive growth with a 66% increase in revenue year-over-year and an optimistic forecast of over 60% for the full year. This surge is largely fueled by its partnerships with major tech firms, promising diversified revenue streams. Despite being debt-free for five years and now free cash flow positive, Innodata faces risks from dependency on Big Tech clients and rising operational costs due to workforce expansion. Earnings are expected to grow significantly at 54% annually, but this depends on successful integration of AI technologies into their offerings.

• Innodata's 66% revenue growth highlights strong demand for its data services. Click here to explore the full narrative on Innodata's strategic momentum and market positioning.

Associated Capital Group

Simply Wall St Value Rating: ★★★★★★

Overview: Associated Capital Group, Inc. offers investment advisory services in the United States and has a market capitalization of approximately $916.76 million.

Operations: AC generates revenue primarily from its investment advisory and asset management services, amounting to $13.44 million.

Associated Capital Group, a nimble player in the financial sector, has demonstrated remarkable earnings growth of 81.1% over the past year, outpacing the industry average of 17.9%. Despite being debt-free for five years, its recent financial results were significantly influenced by a one-off gain of US$35.9 million. The company is actively pursuing acquisitions to broaden its offerings and recently announced a special dividend of US$2 per share, totaling approximately US$42.4 million. Furthermore, it repurchased 65,469 shares for US$2.22 million between April and June 2024 as part of an ongoing buyback program initiated in December 2015.

• Click to explore a detailed breakdown of our findings in Associated Capital Group's health report.

• Assess Associated Capital Group's past performance with our detailed historical performance reports.

Taking Advantage

• Dive into all 224 of the US Undiscovered Gems With Strong Fundamentals we have identified here.
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Looking For Alternative Opportunities?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NasdaqCM:RDVT NasdaqGM:INOD and NYSE:AC.

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