Undiscovered Gems in the United Kingdom to Watch This September 2024

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In the last week, the United Kingdom market has stayed flat, with notable gains of 5.5% in the Materials sector. Over the past 12 months, the market has risen by 7.4%, and earnings are forecast to grow by 14% annually. Identifying good stocks involves looking for companies that show strong potential for growth and stability within this dynamic environment.

Top 10 Undiscovered Gems With Strong Fundamentals In The United Kingdom

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Andrews Sykes Group

NA

2.15%

4.93%

★★★★★★

M&G Credit Income Investment Trust

NA

17.28%

15.80%

★★★★★★

London Security

0.22%

10.13%

7.75%

★★★★★★

Globaltrans Investment

15.40%

2.68%

16.51%

★★★★★★

Impellam Group

31.12%

-5.43%

-6.86%

★★★★★★

Kodal Minerals

NA

nan

72.74%

★★★★★★

VH Global Sustainable Energy Opportunities

NA

18.30%

20.03%

★★★★★★

BBGI Global Infrastructure

0.02%

3.08%

6.85%

★★★★★☆

Goodwin

52.21%

9.26%

13.12%

★★★★★☆

Mountview Estates

16.64%

4.50%

-0.59%

★★★★☆☆

Click here to see the full list of 80 stocks from our UK Undiscovered Gems With Strong Fundamentals screener.

Let's explore several standout options from the results in the screener.

Cohort

Simply Wall St Value Rating: ★★★★★★

Overview: Cohort plc offers a range of products and services in defense, security, and related markets across the UK, Germany, Portugal, Africa, the Americas, Asia Pacific, and other European countries with a market cap of £359.02 million.

Operations: Cohort plc generates revenue primarily from its Sensors and Effectors segment (£120.49 million) and Communications and Intelligence segment (£83.38 million).

Cohort, a UK-based defense technology firm, has shown impressive growth with earnings rising 34.9% last year, surpassing the industry average of 14.8%. The company reported sales of £202.53 million and net income of £15.32 million for FY2024. Cohort's debt to equity ratio improved from 32.5% to 29.2% over five years, and its EBIT covers interest payments by 17.5 times. Additionally, they secured a €33 million contract with NATO for communications systems delivery over three years.

AIM:CHRT Debt to Equity as at Sep 2024

Warpaint London

Simply Wall St Value Rating: ★★★★★★

Overview: Warpaint London PLC, with a market cap of £450.91 million, produces and sells cosmetics through its subsidiaries.

Operations: The company generates revenue primarily from its Own Brand segment (£96.72 million) and a smaller portion from the Close-Out segment (£2.12 million).

Warpaint London, a cosmetics company, has shown impressive growth with earnings increasing by 106.1% over the past year, outpacing the Personal Products industry’s 9.4%. The firm is debt-free now compared to five years ago when its debt-to-equity ratio was 4.4%. Recently, Warpaint reported half-year sales of £45.85 million (up from £36.69 million) and net income of £8.02 million (previously £4.78 million). Additionally, an increased interim dividend of 3.5 pence per share was declared for November 2024 payment.