Undiscovered Gems In Canada To Watch This September 2024
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The Canadian market has experienced a modest decline recently, with the TSX down about 3%, reflecting broader economic uncertainties and softer labor market data in both Canada and the U.S. Despite these challenges, long-term investors might find opportunities in lesser-known stocks that exhibit strong fundamentals and resilience amid current market conditions.
Top 10 Undiscovered Gems With Strong Fundamentals In Canada
| Name | Debt To Equity | Revenue Growth | Earnings Growth | Health Rating |
|---|---|---|---|---|
| TWC Enterprises | 6.74% | 10.99% | 25.68% | ★★★★★★ |
| Reconnaissance Energy Africa | NA | 15.28% | 7.58% | ★★★★★★ |
| Taiga Building Products | NA | 6.05% | 10.50% | ★★★★★★ |
| Amerigo Resources | 12.87% | 7.49% | 12.97% | ★★★★★☆ |
| Tenaz Energy | NA | 33.64% | 50.62% | ★★★★★☆ |
| Firan Technology Group | 17.91% | 3.75% | 23.32% | ★★★★★☆ |
| Mako Mining | 22.90% | 38.12% | 54.79% | ★★★★★☆ |
| Pizza Pizza Royalty | 15.66% | 3.64% | 3.95% | ★★★★☆☆ |
| Queen's Road Capital Investment | 7.20% | 22.14% | 22.20% | ★★★★☆☆ |
| Genesis Land Development | 53.32% | 25.58% | 47.05% | ★★★★☆☆ |
We're going to check out a few of the best picks from our screener tool.
Hammond Power Solutions
Simply Wall St Value Rating: ★★★★★★
Overview: Hammond Power Solutions Inc., along with its subsidiaries, designs, manufactures, and sells various transformers across Canada, the United States, Mexico, and India with a market cap of CA$1.41 billion.
Operations: Hammond Power Solutions generates revenue primarily from the manufacture and sale of transformers, amounting to CA$754.37 million. The company has a market capitalization of CA$1.41 billion.
Hammond Power Solutions, a small cap in the electrical industry, has been making waves with its impressive financial performance. Recently, it reported Q2 2024 sales of CAD 197.21 million and net income of CAD 23.59 million, up from CAD 172.45 million and CAD 13.33 million respectively a year ago. The company’s debt to equity ratio has improved significantly from 27.7% to just 5% over the past five years, and earnings growth of 12.3% outpaced the industry average of 6.5%. Additionally, Hammond's interest payments are well covered by EBIT at an impressive ratio of 87.6x.
North West
Simply Wall St Value Rating: ★★★★★★
Overview: The North West Company Inc., with a market cap of CA$2.49 billion, operates through its subsidiaries to retail food and everyday products and services in rural communities and urban neighborhood markets across northern Canada, rural Alaska, the South Pacific, and the Caribbean.