Over the last 7 days, the United States market has remained flat, yet it is up 31% over the past year with earnings expected to grow by 15% per annum in the coming years. In this dynamic environment, identifying stocks that offer unique potential can be key to enhancing your portfolio's performance.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 232 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Here we highlight a subset of our preferred stocks from the screener.

PC Connection

Simply Wall St Value Rating: ★★★★★★

Overview: PC Connection, Inc., along with its subsidiaries, offers a range of information technology solutions globally and has a market capitalization of approximately $1.93 billion.

Operations: The company generates revenue through its three main segments: Business Solutions ($1.06 billion), Enterprise Solutions ($1.20 billion), and Public Sector Solutions ($528.65 million).

PC Connection is carving out a niche in AI and digital transformation, with initiatives like the Connection Helix Center for Applied AI bolstering its presence in healthcare and retail. The firm reported Q3 2024 sales of US$724.72 million, up from US$693.09 million last year, while net income rose to US$27.06 million from US$25.6 million. Over the past year, earnings grew by 15%, surpassing the electronic industry’s -3% trend, yet significant insider selling was noted recently. With no debt burden and high-quality earnings, PC Connection's strategic focus could drive future growth despite potential risks in AI adoption and competition pressures.

• PC Connection is investing in AI and digital transformation to drive growth in healthcare and retail sectors. Click here to explore the detailed narrative on PC Connection's strategic initiatives.

Northrim BanCorp

Simply Wall St Value Rating: ★★★★★★

Overview: Northrim BanCorp, Inc. is a bank holding company for Northrim Bank, offering commercial banking products and services to businesses and professionals, with a market cap of $475.97 million.

Operations: Northrim BanCorp generates revenue primarily from its Community Banking segment, contributing $112.55 million, and Home Mortgage Lending, adding $29.04 million. The company focuses on these key areas to drive its financial performance.

Northrim BanCorp, with total assets of US$3.0 billion and equity of US$260.1 million, shows a strong financial footing. Its deposits stand at US$2.6 billion against loans of US$2.0 billion, highlighting a solid loan-to-deposit ratio. The bank's allowance for bad loans is robust at 394%, covering 0.2% of total loans, which speaks to its prudent risk management practices. Despite significant insider selling recently, the company trades at about 10% below its estimated fair value and benefits from primarily low-risk funding sources like customer deposits, making it an attractive prospect in the banking sector landscape.

• Click here to discover the nuances of Northrim BanCorp with our detailed analytical health report.

• Gain insights into Northrim BanCorp's past trends and performance with our Past report.

REX American Resources

Simply Wall St Value Rating: ★★★★★★

Overview: REX American Resources Corporation, along with its subsidiaries, is engaged in the production and sale of ethanol in the United States, with a market capitalization of approximately $716.56 million.

Operations: REX generates revenue primarily from the ethanol and by-products segment, amounting to $671.88 million.

REX American Resources, a player in the ethanol industry, has been making strides with its earnings growth of 39% over the past year, outpacing the Oil and Gas sector's negative trend. Trading at 66% below its fair value estimate, it offers potential value for investors. The company is debt-free and has maintained this position for five years, providing financial flexibility. Recent quarterly sales were US$174.88 million compared to US$221.08 million last year, while net income was US$24.5 million versus US$26.08 million previously. Despite these figures, REX remains free cash flow positive with promising revenue forecasts ahead.

• REX American Resources aims to grow revenue by expanding ethanol production and leveraging carbon capture technology. Click here to explore the full narrative on REX's strategic growth initiatives.

Seize The Opportunity

• Embark on your investment journey to our 232 US Undiscovered Gems With Strong Fundamentals selection here.
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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:CNXN NasdaqGS:NRIM and NYSE:REX.

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