Undiscovered Gems in Germany Three Stocks to Watch in August 2024

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As the European market shows signs of optimism with the pan-European STOXX Europe 600 Index ending higher and Germany’s DAX gaining 1.70%, investors are increasingly turning their attention to small-cap stocks that have been outperforming their larger counterparts. In this environment, identifying promising stocks involves looking for companies with strong fundamentals, growth potential, and resilience in a fluctuating economic landscape.

Top 10 Undiscovered Gems With Strong Fundamentals In Germany

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

EnviTec Biogas

37.96%

19.34%

51.22%

★★★★★★

FRoSTA

8.18%

4.36%

16.00%

★★★★★★

Mühlbauer Holding

NA

10.49%

-12.73%

★★★★★★

Paul Hartmann

26.29%

1.12%

-17.65%

★★★★★☆

Südwestdeutsche Salzwerke

0.30%

4.57%

25.01%

★★★★★☆

HOMAG Group

NA

-31.14%

23.43%

★★★★★☆

Baader Bank

91.28%

12.42%

-8.00%

★★★★★☆

BAVARIA Industries Group

3.19%

0.18%

28.18%

★★★★★☆

Wilson

64.79%

30.09%

68.29%

★★★★☆☆

BAUER

78.29%

2.30%

-38.28%

★★★★☆☆

Click here to see the full list of 47 stocks from our German Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Eckert & Ziegler

Simply Wall St Value Rating: ★★★★★★

Overview: Eckert & Ziegler SE manufactures and sells isotope technology components worldwide, with a market cap of approximately €926.79 million.

Operations: Eckert & Ziegler SE generates revenue primarily from its Medical (€132.80 million) and Isotope Products (€150.97 million) segments, with a net adjustment of €0.07 million and eliminations amounting to -€10.32 million.

Eckert & Ziegler, a promising player in the Medical Equipment sector, has shown impressive growth with earnings up 31.6% last year, outpacing the industry’s 16.2%. The company reported Q2 sales of €77.76M and net income of €9.54M compared to €60.03M and €6.17M respectively a year ago. Its debt to equity ratio improved from 14.7% to 9.5% over five years, and its price-to-earnings ratio (24.6x) remains attractive against industry averages (26.9x).

XTRA:EUZ Debt to Equity as at Aug 2024

ProCredit Holding

Simply Wall St Value Rating: ★★★★★☆

Overview: ProCredit Holding AG, with a market cap of approximately €519.48 million, offers commercial banking services to small and medium enterprises as well as private customers across Europe, South America, and Germany through its subsidiaries.

Operations: ProCredit Holding AG generates revenue primarily from its banking segment, which contributed €422.15 million. The company has a market cap of approximately €519.48 million.