The United States market has seen a slight dip of 1.3% over the last week, yet it remains robust with a 15% increase over the past year and anticipated earnings growth of 14% annually in the coming years. In this dynamic environment, identifying stocks that are undervalued or overlooked can offer unique opportunities for investors seeking to capitalize on potential growth beyond the broader market trends.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 285 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

We're going to check out a few of the best picks from our screener tool.

Sezzle

Simply Wall St Value Rating: ★★★★★☆

Overview: Sezzle Inc. is a technology-enabled payments company operating mainly in the United States and Canada, with a market cap of $1.69 billion.

Operations: Sezzle generates revenue primarily from lending to end-customers, amounting to $271.13 million. The company's financial performance is highlighted by its ability to manage costs and achieve a net profit margin of 5%.

Sezzle's recent performance highlights its significant growth trajectory, with earnings surging by 1006% over the past year, outpacing the Diversified Financial industry’s 15%. The company's debt-to-equity ratio has risen from 77.3% to 118.4% over five years, though interest payments are well-covered by EBIT at a robust 10x coverage. Sezzle reported impressive sales of US$271 million for 2024, up from US$159 million in the previous year, and net income jumped to US$78.52 million from US$7.1 million. Despite these gains, insider selling and share price volatility present ongoing challenges for potential investors to consider carefully.

• Sezzle's strategic partnership with WebBank aims to enhance profitability by unifying regulatory practices. Click here to explore the full narrative on Sezzle's growth strategy and potential.

National HealthCare

Simply Wall St Value Rating: ★★★★★☆

Overview: National HealthCare Corporation operates skilled nursing facilities, assisted and independent living facilities, homecare and hospice agencies, and health hospitals with a market cap of $1.44 billion.

Operations: National HealthCare generates revenue primarily through skilled nursing facilities, assisted and independent living facilities, homecare and hospice agencies, and health hospitals. The company's financial performance is reflected in its market capitalization of approximately $1.44 billion.

National HealthCare Corporation (NHC) is carving a niche with its impressive earnings growth of 52.6% over the past year, outpacing the healthcare industry average of 14.8%. Despite a notable one-off gain of US$31 million impacting its recent financials, NHC's debt-to-equity ratio has risen from 1.3 to 14 over five years, which might raise eyebrows about leverage management. However, the company seems undervalued by trading nearly half below estimated fair value and maintains robust interest coverage at 19.5 times EBIT. Recent earnings showed revenue climbing to US$369 million from US$301 million last year, though net income dipped significantly to US$6 million from US$28 million previously.

• Dive into the specifics of National HealthCare here with our thorough health report.

• Learn about National HealthCare's historical performance.

Natural Grocers by Vitamin Cottage

Simply Wall St Value Rating: ★★★★☆☆

Overview: Natural Grocers by Vitamin Cottage, Inc., along with its subsidiaries, operates as a retailer of natural and organic groceries and dietary supplements in the United States, with a market cap of approximately $1.02 billion.

Operations: NGVC generates revenue primarily through its natural and organic retail stores, with reported sales of $1.27 billion.

Natural Grocers, a dynamic player in the organic grocery sector, has shown impressive growth with earnings surging 35.8% over the past year, outpacing the industry average of 9.8%. The company’s debt management is commendable, with a net debt to equity ratio at a satisfactory 1.4%, and interest payments well-covered by EBIT at 12.3 times coverage. Recent product expansions like Organic Coconut Water and Kombucha highlight their innovative edge while store openings in Texas signal growth ambitions. With free cash flow positive at US$23 million as of March 2025, Natural Grocers seems poised for continued success in its niche market segment.

• Take a closer look at Natural Grocers by Vitamin Cottage's potential here in our health report.

• Review our historical performance report to gain insights into Natural Grocers by Vitamin Cottage's's past performance.

Where To Now?

• Dive into all 285 of the US Undiscovered Gems With Strong Fundamentals we have identified here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Want To Explore Some Alternatives?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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:SEZL NYSEAM:NHC and NYSE:NGVC.

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