The market is up 4.2% over the last week and has climbed 24% in the past year, with earnings forecast to grow by 15% annually. In this robust environment, identifying stocks with strong potential involves looking for companies that are not only performing well but also have unique attributes or growth opportunities that are yet to be fully recognized by the broader market.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 209 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

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

Cricut

Simply Wall St Value Rating: ★★★★★★

Overview: Cricut, Inc. designs, markets, and distributes a creativity platform for making professional-looking handmade goods and has a market cap of approximately $1.31 billion.

Operations: Cricut generates revenue through the sale of connected machines, accessories, and subscriptions. The company's net profit margin is 11.29%.

Cricut, Inc. has shown impressive earnings growth of 40.2% over the past year, outpacing the Consumer Durables industry at -2.1%. The company is debt-free now compared to a debt-to-equity ratio of 49.9% five years ago, indicating strong financial health. Recent activities include repurchasing 1,406,983 shares for US$8.86 million and being added to multiple Russell indices in July 2024. Despite significant insider selling recently, Cricut trades at a substantial discount of 47.7% below its estimated fair value.

• Click here and access our complete health analysis report to understand the dynamics of Cricut.

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

Benchmark Electronics

Simply Wall St Value Rating: ★★★★★☆

Overview: Benchmark Electronics, Inc., together with its subsidiaries, provides product design, engineering services, technology solutions, and manufacturing services across the Americas, Asia, and Europe with a market cap of approximately $1.53 billion.

Operations: Benchmark Electronics generates revenue primarily from the Americas ($1.53 billion), Asia ($1.02 billion), and Europe ($313.74 million). The company’s net profit margin is not provided, but its financial performance is significantly influenced by its diverse geographical revenue streams.

Benchmark Electronics, a small-cap player in the electronics manufacturing sector, reported Q2 2024 sales of US$665.9 million and net income of US$15.53 million, up from US$13.99 million last year. The company expects Q3 revenue between US$630 million and US$670 million with EPS ranging from $0.36 to $0.42. Benchmark recently expanded its facility in Brasov, Romania to meet growing demand in industrials and medical sectors while also increasing its quarterly dividend to $0.17 per share effective October 11, 2024.

• Take a closer look at Benchmark Electronics' potential here in our health report.

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

Hovnanian Enterprises

Simply Wall St Value Rating: ★★★★☆☆

Overview: Hovnanian Enterprises, Inc., with a market cap of approximately $1.31 billion, designs, constructs, markets, and sells residential homes in the United States through its subsidiaries.

Operations: Hovnanian Enterprises generates revenue primarily from its homebuilding operations, with significant contributions from the West ($1.37 billion), Northeast ($989.39 million), and Southeast ($474.97 million) regions, along with financial services ($70.40 million).

Hovnanian Enterprises has shown significant growth, with earnings rising 51.3% over the past year, outpacing the Consumer Durables industry. The net debt to equity ratio stands at a high 145.9%, yet interest payments are well covered by EBIT (7.6x). With a price-to-earnings ratio of 5.9x, it offers good value compared to the US market average of 18x. Recent earnings reports highlight strong performance with Q3 revenue at US$722.7 million and net income at US$72.92 million, alongside share repurchases totaling $11.49 million in recent months.

• Navigate through the intricacies of Hovnanian Enterprises with our comprehensive health report here.

• Explore historical data to track Hovnanian Enterprises' performance over time in our Past section.

Turning Ideas Into Actions

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Interested In Other Possibilities?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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 NasdaqGS:CRCT NYSE:BHE and NYSE:HOV.

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