Undiscovered Gems in the United States to Explore This October 2024

The United States market has shown robust performance, with a 1.5% increase over the last week and a remarkable 33% rise over the past year, while earnings are projected to grow by 16% annually. In this thriving environment, identifying stocks that offer unique potential can be key to capitalizing on these favorable conditions.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name	Debt To Equity	Revenue Growth	Earnings Growth	Health Rating
Morris State Bancshares	10.20%	-0.28%	6.97%	★★★★★★
Teekay	NA	-6.48%	55.79%	★★★★★★
Mission Bancorp	25.37%	16.23%	20.16%	★★★★★★
Omega Flex	NA	1.31%	3.88%	★★★★★★
First Northern Community Bancorp	NA	7.12%	10.04%	★★★★★★
Associated Capital Group	NA	-7.78%	8.48%	★★★★★★
Banco Latinoamericano de Comercio Exterior S. A	311.64%	21.07%	24.77%	★★★★★☆
Valhi	38.71%	2.57%	-19.76%	★★★★★☆
Chain Bridge Bancorp	10.64%	41.34%	18.53%	★★★★☆☆
FRMO	0.17%	12.99%	23.62%	★★★★☆☆

Click here to see the full list of 219 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

We'll examine a selection from our screener results.

Karooooo (NasdaqCM:KARO)

Simply Wall St Value Rating: ★★★★★★

Overview: Karooooo Ltd. offers a mobility software-as-a-service (SaaS) platform for connected vehicles across multiple regions including South Africa, the rest of Africa, Europe, the Asia-Pacific, the Middle East, and the United States with a market capitalization of approximately $1.35 billion.

Operations: The company's revenue primarily stems from its Cartrack segment, generating ZAR 3.74 billion, with additional contributions from Karooooo Logistics at ZAR 355.99 million. Gross profit margin trends offer insight into financial performance dynamics without delving into net profit specifics.

Karooooo, a nimble player in the market, has shown robust earnings growth of 33.5% over the past year, outpacing the software industry's 23.3%. Trading at a notable 34.5% below its estimated fair value, it seems to offer good value for investors. Over five years, its debt-to-equity ratio impressively decreased from 21.7% to just 3%, indicating prudent financial management and a strong balance sheet bolstered by high-quality non-cash earnings.

• Take a closer look at Karooooo's potential here in our health report.

• Understand Karooooo's track record by examining our Past report.

Pathward Financial (NasdaqGS:CASH)

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 approximately $1.85 billion.

Operations: Pathward Financial generates revenue primarily from its Consumer and Commercial segments, with $401.69 million and $248.43 million respectively. The net profit margin shows a notable trend at 20%.

Pathward Financial, a smaller player in the banking sector, showcases robust fundamentals with total assets of US$7.5 billion and equity of US$765.2 million. The bank's deposits stand at US$6.4 billion against loans totaling US$4.5 billion, indicating a strong deposit base as its primary funding source, reducing risk exposure. A net interest margin of 6.1% complements their solid performance, alongside an adequate bad loan allowance at 1%, reflecting prudent credit management practices and stable growth prospects in the industry context.

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

• Learn about Pathward Financial's historical performance.

IDT (NYSE:IDT)

Simply Wall St Value Rating: ★★★★★★

Overview: IDT Corporation offers communications and payment services across the United States, the United Kingdom, and internationally, with a market cap of approximately $1.21 billion.

Operations: IDT generates revenue primarily from its Traditional Communications segment, contributing $899.60 million, followed by Fintech at $120.70 million and National Retail Solutions at $103.10 million. The Net2phone segment adds $82.30 million to the overall revenue mix.

IDT, a telecom player, has shown impressive earnings growth of 59.2% over the past year, outpacing the industry's -18.2%. The company is debt-free and trades at 72.7% below its estimated fair value, indicating potential undervaluation. Recent financials reveal net income rose to US$64.45 million from US$40.49 million last year, with basic EPS climbing to US$2.55 from US$1.59. Notably, IDT repurchased 94,314 shares for US$3.4 million recently as part of a larger buyback program initiated in 2016.

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

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

Taking Advantage

• Click this link to deep-dive into the 219 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.
• Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.

Ready To Venture Into Other Investment Styles?

• 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.

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