The United States market has remained flat over the past week but has experienced a significant 22% increase over the last year, with earnings expected to grow by 15% annually. In such a dynamic environment, identifying stocks that combine strong fundamentals with growth potential can be key to uncovering hidden opportunities.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 278 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Let's review some notable picks from our screened stocks.

Energy Recovery

Simply Wall St Value Rating: ★★★★★★

Overview: Energy Recovery, Inc. designs, manufactures, and sells energy efficiency technology solutions across various regions including the Americas, Middle East, Africa, Asia, and Europe with a market capitalization of $885.20 million.

Operations: The company's primary revenue stream is derived from its Water segment, generating $134.45 million, while Emerging Technologies contribute $0.61 million.

Energy Recovery is making strides with its expansion into the wastewater and CO2 sectors, aiming to tap into energy-efficient innovations. The firm's focus on large desalination projects in regions like the Middle East, which contributes over 70% of revenue, highlights both growth potential and geographic risk. With a projected annual earnings growth of 34.68%, Energy Recovery's profitability seems poised for improvement. Recent announcements include a $50 million share repurchase program and revenue guidance suggesting moderate growth due to project delays. Despite these prospects, investors should weigh the risks associated with heavy regional reliance and market volatility.

• Energy Recovery's strategic entry into wastewater and CO2 markets could drive revenue growth through energy-efficient innovations; click here to explore the full narrative on the company's potential.

Associated Capital Group

Simply Wall St Value Rating: ★★★★★★

Overview: Associated Capital Group, Inc. operates in the United States offering investment advisory services and has a market capitalization of approximately $830.86 million.

Operations: The company generates revenue primarily through its investment advisory and asset management segment, which reported $13.18 million.

Associated Capital Group, a nimble player in the financial sector, showcases a debt-free balance sheet and an impressive earnings growth of 18.4% over the past year, outpacing the industry average of 17.2%. Its price-to-earnings ratio stands at 18.7x, below the industry norm of 22.1x, suggesting potential value for investors. However, recent results reveal a net income dip to US$4.28 million in Q4 from US$16.34 million last year due to significant one-off gains impacting previous figures by US$42.8 million. Notably, from October to December 2024, it repurchased shares worth US$2.3 million as part of its ongoing buyback program initiated in 2015.

• Dive into the specifics of Associated Capital Group here with our thorough health report.

• Gain insights into Associated Capital Group's past trends and performance with our Past report.

Exodus Movement

Simply Wall St Value Rating: ★★★★★★

Overview: Exodus Movement, Inc. is a financial technology company focusing on the blockchain and digital asset industry in the United States with a market cap of approximately $1.41 billion.

Operations: Exodus Movement generates revenue primarily from its data processing segment, amounting to $89.94 million. The company's market cap stands at approximately $1.41 billion.

Exodus Movement, a nimble player in the crypto space, recently unveiled a new swap experience that enhances user flexibility and reduces fees to as low as 0.5%. This innovation aligns with their strategic move to the NYSE American exchange following delisting from OTC Equity. Their price-to-earnings ratio of 25x is notably below the software industry average of 42.1x, indicating potential value. Despite recent share volatility and being free cash flow negative, Exodus has no debt and projects earnings growth at 25.87% annually, showcasing its ambition in redefining digital asset management for everyday users.

• Click to explore a detailed breakdown of our findings in Exodus Movement's health report.

• Examine Exodus Movement's past performance report to understand how it has performed in the past.

Taking Advantage

• Delve into our full catalog of 278 US Undiscovered Gems With Strong Fundamentals here.
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Ready For A Different Approach?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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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 NasdaqGS:ERII NYSE:AC and NYSEAM:EXOD.

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