As the U.S. market experiences a surge, driven by investor reactions to earnings reports and potential tariff adjustments, small-cap stocks are gaining renewed attention amid this broader economic backdrop. With major indices like the S&P 500 and Nasdaq Composite showing significant gains, discovering lesser-known stocks that can thrive in such dynamic conditions becomes crucial for investors seeking diversification and growth potential.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 289 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

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

Burke & Herbert Financial Services

Simply Wall St Value Rating: ★★★★★★

Overview: Burke & Herbert Financial Services Corp. is the bank holding company for Burke & Herbert Bank & Trust Company, offering a range of community banking products and services in Virginia and Maryland, with a market cap of $763.22 million.

Operations: Burke & Herbert Financial Services generates revenue primarily through its community banking segment, amounting to $233.03 million. The company's financial performance is reflected in its net profit margin of 24%.

Burke & Herbert Financial Services, with assets of US$7.8 billion and equity of US$730.2 million, is trading at 65.2% below its estimated fair value, suggesting potential undervaluation. The company has a robust financial foundation with 92% of its liabilities funded by low-risk customer deposits rather than external borrowing. Despite a significant one-off loss of US$36.5 million impacting recent results, earnings grew by 54.4% last year, outpacing the industry average of 0.5%. With total deposits at US$6.5 billion and loans at US$5.6 billion, the bank maintains an appropriate bad loan ratio of 0.7%.

• Get an in-depth perspective on Burke & Herbert Financial Services' performance by reading our health report here.

• Understand Burke & Herbert Financial Services' track record by examining our Past report.

Hingham Institution for Savings

Simply Wall St Value Rating: ★★★★★☆

Overview: Hingham Institution for Savings offers a range of financial products and services to individuals and small businesses in the United States, with a market capitalization of $536.34 million.

Operations: Hingham Institution for Savings generates revenue primarily from its financial services segment, amounting to $67.59 million. The company's market capitalization stands at $536.34 million, reflecting its position in the financial sector.

Hingham Institution for Savings, with $4.5 billion in total assets and $437.6 million in equity, stands out due to its robust financial health. The bank has total deposits of $2.6 billion and loans amounting to $3.9 billion, supported by a net interest margin of 1%. It maintains an impressive allowance for bad loans at 1774%, covering non-performing loans which are at a negligible 0%. Despite significant insider selling recently, the bank's earnings grew by 15% last year, surpassing the industry average growth of just 0.5%, showcasing its resilience and potential for continued performance in the banking sector.

• Delve into the full analysis health report here for a deeper understanding of Hingham Institution for Savings.

• Review our historical performance report to gain insights into Hingham Institution for Savings''s past performance.

Qudian

Simply Wall St Value Rating: ★★★★☆☆

Overview: Qudian Inc. is a consumer-oriented technology company based in the People’s Republic of China, with a market cap of $484.87 million.

Operations: Qudian generates revenue primarily through its consumer-oriented technology services in China. The company's financials show a focus on maintaining efficient operations within the market, with attention to cost management and profitability.

Qudian, a smaller player in the consumer finance sector, shows a complex financial landscape. The company has reduced its debt-to-equity ratio significantly from 28.4% to 6.4% over five years, indicating improved financial stability. Earnings surged by 134% last year, outpacing the industry average of 12%, yet earnings have declined by an average of 57% annually over the past five years. Despite these mixed results, Qudian repurchased approximately 17.8 million shares for $41.2 million recently, suggesting confidence in its valuation and future prospects despite challenges like recent auditor changes and ongoing losses reported at CNY66 million for Q4 2024 compared to CNY117 million previously.

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

• Evaluate Qudian's historical performance by accessing our past performance report.

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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:BHRB NasdaqGM:HIFS and NYSE:QD.

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