The United States market has experienced a remarkable 27% increase over the past year despite remaining flat over the last week, with earnings projected to grow by 15% annually. In this environment, identifying promising stocks involves seeking out those with strong growth potential and solid fundamentals that may not yet be widely recognized.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 238 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

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

FS Bancorp

Simply Wall St Value Rating: ★★★★★★

Overview: FS Bancorp, Inc. is a bank holding company for 1st Security Bank of Washington, offering banking and financial services to local families, businesses, and industry niches with a market cap of $351.65 million.

Operations: FS Bancorp generates revenue primarily from its Commercial and Consumer Banking segment, contributing $117.94 million, and Home Lending, which brings in $21.52 million. The company's financial performance is influenced by the net profit margin trend over recent periods.

FS Bancorp, with assets totaling US$3 billion and equity of US$288.9 million, stands out for its robust financial health. The company has total deposits of US$2.4 billion and loans amounting to US$2.5 billion, alongside a net interest margin of 4.5%. Its allowance for bad loans is a solid 0.4% of total loans, backed by an impressive 290% coverage ratio for bad loan allowances. Recent activities include the repurchase of over 113,000 shares at a cost of US$5 million under its buyback program and the declaration of a quarterly dividend at $0.27 per share in October 2024.

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

• Review our historical performance report to gain insights into FS Bancorp's's past performance.

First Bank

Simply Wall St Value Rating: ★★★★★★

Overview: First Bank offers a range of banking products and services to small to mid-sized businesses and individuals, with a market capitalization of $367.91 million.

Operations: First Bank's revenue primarily comes from its community banking segment, amounting to $123.43 million.

With total assets of US$3.8 billion and equity at US$402.1 million, First Bank stands out with its strong financial footing. The bank's total deposits and loans both tally up to US$3.1 billion, showcasing a balanced approach to growth. Its net interest margin sits comfortably at 3.5%, indicating efficient earning on its lending activities. A standout feature is the allowance for bad loans set at 312%, which is more than sufficient given the low non-performing loan ratio of 0.4%. Recent earnings growth of 85.6% further underscores its robust performance compared to industry trends, while a new share repurchase program worth $16 million signals confidence in future prospects.

• First Bank's strategic focus on relationship-based lending aims to enhance customer engagements and revenue growth. Click here to explore the full narrative on First Bank's investment potential.

Global Indemnity Group

Simply Wall St Value Rating: ★★★★★☆

Overview: Global Indemnity Group, LLC operates through its subsidiaries to offer specialty property and casualty insurance and reinsurance products globally, with a market capitalization of approximately $496.18 million.

Operations: Global Indemnity Group generates revenue primarily from its Penn-America segment, contributing $545.53 million, and Non-core Operations, adding $103.15 million. The company also reports unallocated net investment income of $62.34 million and a minor gain from realized investments at $0.85 million.

Global Indemnity Group is navigating its growth path with a focus on technology and strategic investments, aiming for a 10% compound annual growth rate in its insurance business. The company reported an impressive earnings increase of 85.1% over the past year, outpacing the industry average of 36.4%, and has been debt-free since reducing its debt-to-equity ratio from 43.8% five years ago. Despite a combined ratio of 93.9% indicating strong underwriting performance, challenges such as a high expense ratio at 38.2% remain hurdles to overcome for future revenue targets and operational efficiencies in the evolving market landscape.

• Global Indemnity Group's tech transformation aims to boost efficiency and margins. Click here to explore the full narrative on the company's strategic initiatives.

Next Steps

• Click here to access our complete index of 238 US Undiscovered Gems With Strong Fundamentals.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
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Seeking Other Investments?

• 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:FSBW NasdaqGM:FRBA and NYSE:GBLI.

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