Undiscovered Gems With Strong Fundamentals To Explore January 2025

Simply Wall St.
24 Jan

The United States market has shown robust performance, climbing 3.0% in the last week and up 25% over the past year, with earnings forecasted to grow by 15% annually. In this thriving environment, identifying stocks with strong fundamentals can offer promising opportunities for investors seeking to capitalize on the market's upward trajectory.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name Debt To Equity Revenue Growth Earnings Growth Health Rating
Eagle Financial Services 170.75% 12.30% 1.92% ★★★★★★
Morris State Bancshares 10.20% -0.28% 6.97% ★★★★★★
Wilson Bank Holding NA 7.87% 8.22% ★★★★★★
Omega Flex NA 0.39% 2.57% ★★★★★★
Cashmere Valley Bank 15.51% 5.80% 3.51% ★★★★★★
Teekay NA -3.71% 60.91% ★★★★★★
Parker Drilling 46.05% 0.86% 52.25% ★★★★★★
ASA Gold and Precious Metals NA 7.11% -35.88% ★★★★★☆
FRMO 0.08% 38.78% 45.85% ★★★★★☆
Pure Cycle 5.15% -2.61% -6.23% ★★★★★☆

Click here to see the full list of 261 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

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

SIGA Technologies

Simply Wall St Value Rating: ★★★★★★

Overview: SIGA Technologies, Inc. is a commercial-stage pharmaceutical company that specializes in health security markets in the United States with a market cap of $456.28 million.

Operations: SIGA Technologies generates revenue primarily from its pharmaceuticals segment, amounting to $173.73 million.

SIGA Technologies, a player in the pharmaceutical space, recently achieved profitability and is trading at 80.6% below its estimated fair value. The company has no debt compared to five years ago when its debt-to-equity ratio was 76.7%, indicating a solid financial turnaround. Its antiviral treatment TEPOXX received regulatory approval in Japan for treating various orthopoxviruses, expanding its market reach beyond the U.S., Canada, and Europe. For Q3 2024, SIGA reported US$10 million in revenue with net income of US$1.34 million—a significant improvement from last year's net loss—highlighting strong operational progress.

  • Delve into the full analysis health report here for a deeper understanding of SIGA Technologies.
  • Gain insights into SIGA Technologies' past trends and performance with our Past report.

NasdaqGM:SIGA Debt to Equity as at Jan 2025

Pathward Financial

Simply Wall St Value Rating: ★★★★★★

Overview: Pathward Financial, Inc. is a bank holding company for Pathward, National Association, offering a range of banking products and services in the United States with a market cap of $1.86 billion.

Operations: Pathward Financial generates revenue through its banking products and services offered in the U.S. The company has a net profit margin of 25%, reflecting its efficiency in managing costs relative to its income.

Pathward Financial, with assets totaling $7.6 billion and equity of $776.4 million, stands out for its strategic moves in the financial sector. Its deposits amount to $6.5 billion against loans of $4.5 billion, showcasing a robust balance sheet backed by a healthy net interest margin of 6.4%. The company has set aside an appropriate allowance for bad loans at 0.8% of total loans, reflecting prudent risk management practices. Recent insider selling might raise eyebrows; however, trading at 66.8% below estimated fair value suggests potential upside for investors seeking undervalued opportunities in the banking industry landscape.

  • Pathward Financial's strategic asset reallocation and renewable energy partnerships aim to drive revenue growth. Click here to explore the full narrative on Pathward Financial's investment thesis.
NasdaqGS:CASH Debt to Equity as at Jan 2025

Univest Financial

Simply Wall St Value Rating: ★★★★★★

Overview: Univest Financial Corporation is a bank holding company for Univest Bank and Trust Co., with a market cap of $869.84 million.

Operations: Univest Financial generates revenue primarily through its banking and trust services. The company has a market cap of $869.84 million, reflecting its financial standing in the industry.

Univest Financial, a player in the financial sector with total assets of US$8.1 billion and equity at US$887.3 million, showcases its strength by trading 43.1% below estimated fair value, suggesting potential upside. The firm has total deposits of US$6.8 billion and loans amounting to US$6.7 billion, maintaining a net interest margin of 2.9%. It effectively manages risk with an allowance for bad loans at just 0.2% of total loans while leveraging low-risk funding sources for 93% of liabilities. Recent share buybacks totaling nearly 10% indicate confidence in enhancing shareholder value despite competitive pressures.

  • Univest Financial's strategic focus on wealth management and insurance expansion drives revenue growth. Click here to explore the full narrative on Univest Financial.
NasdaqGS:UVSP Debt to Equity as at Jan 2025

Turning Ideas Into Actions

  • Click this link to deep-dive into the 261 companies within our US Undiscovered Gems With Strong Fundamentals screener.
  • 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.
  • Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Interested In Other Possibilities?

  • 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 NasdaqGM:SIGA NasdaqGS:CASH and NasdaqGS:UVSP.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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