The United States market has remained flat over the past week but has experienced a robust 22% rise over the last 12 months, with earnings anticipated to grow by 15% annually in the coming years. In this dynamic environment, identifying stocks that are not yet widely recognized but have strong growth potential can be key to capitalizing on future opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 282 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Bank First

Simply Wall St Value Rating: ★★★★★★

Overview: Bank First Corporation operates as a holding company for Bank First, N.A., with a market capitalization of $1.03 billion.

Operations: Bank First generates revenue primarily from offering a full range of consumer and commercial financial institution services, amounting to $158.25 million.

With total assets of US$4.5 billion and equity of US$639.7 million, Bank First stands out with its robust balance sheet. The bank's deposits total US$3.7 billion against loans of US$3.5 billion, showcasing a strong deposit base primarily from low-risk sources at 95%. Despite negative earnings growth last year (-11.5%), it trades at 17% below estimated fair value and forecasts a promising 6.92% annual earnings growth rate ahead. Recent events include maintaining dividends with a notable increase over the prior year and no share repurchases in the latest quarter, reflecting strategic financial management amidst executive changes.

• Delve into the full analysis health report here for a deeper understanding of Bank First.

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

Fidelity D & D Bancorp

Simply Wall St Value Rating: ★★★★★★

Overview: Fidelity D & D Bancorp, Inc. is the bank holding company for The Fidelity Deposit and Discount Bank, offering a variety of banking, trust, and financial services to individuals, small businesses, and corporate clients with a market cap of $264.60 million.

Operations: The primary revenue stream for Fidelity D & D Bancorp, Inc. comes from its banking, trust, and financial services segment, generating $79.41 million. The company has a market cap of $264.60 million.

Fidelity D & D Bancorp, with total assets of US$2.6 billion and equity of US$204 million, stands out for its robust financial health. The company boasts a net interest margin of 2.7% and holds customer deposits totaling US$2.3 billion as its primary funding source, reflecting low-risk liabilities at 98%. Its bad loans are well-managed at just 0.4% of total loans, supported by a sufficient allowance ratio of 275%. Earnings growth over the past year hit an impressive 14.2%, surpassing the industry average by a significant margin, highlighting high-quality earnings potential in this sector niche.

• Click to explore a detailed breakdown of our findings in Fidelity D & D Bancorp's health report.

• Examine Fidelity D & D Bancorp's past performance report to understand how it has performed in the past.

Materialise

Simply Wall St Value Rating: ★★★★★★

Overview: Materialise NV is a company that offers additive manufacturing and medical software, along with 3D printing services across the Americas, Europe and Africa, and the Asia-Pacific, with a market cap of approximately $523.93 million.

Operations: Materialise generates revenue through its three primary segments: Medical (€112.37 million), Software (€44.03 million), and Manufacturing (€109.99 million). The company's revenue streams are diversified across these segments, reflecting its focus on both software solutions and manufacturing services in the additive manufacturing industry.

Materialise, a notable player in the 3D printing industry, has shown impressive financial resilience. Over the past five years, its debt-to-equity ratio dropped from 90.4% to 18.3%, indicating improved financial health. The company boasts more cash than total debt and remains profitable with positive free cash flow of €9.05M as of June 2024. Despite a substantial one-off loss of €9.4M impacting recent results, earnings surged by 274% last year, outpacing the software industry's growth rate of 27%. With projected annual earnings growth at nearly 22%, Materialise seems poised for continued expansion in its sector.

• Take a closer look at Materialise's potential here in our health report.

• Review our historical performance report to gain insights into Materialise's's past performance.

Taking Advantage

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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:BFC NasdaqGM:FDBC and NasdaqGS:MTLS.

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