Over the last 7 days, the market has risen 4.0%, driven by gains in every sector. As for the past 12 months, the market is up 25%, with earnings expected to grow by 15% per annum over the next few years. In this thriving environment, identifying stocks with strong fundamentals and growth potential can be particularly rewarding. Here are three undiscovered gems in the United States to watch this August 2024.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Click here to see the full list of 222 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Underneath we present a selection of stocks filtered out by our screen.

National HealthCare

Simply Wall St Value Rating: ★★★★★★

Overview: National HealthCare Corporation operates skilled nursing facilities, assisted and independent living facilities, homecare and hospice agencies, and health hospitals with a market cap of $1.94 billion.

Operations: National HealthCare Corporation generates revenue primarily from inpatient services ($991.67 million) and homecare and hospice services ($134.96 million). The company also has additional revenue streams totaling $60.61 million.

National HealthCare (NHC) has seen earnings growth of 187.7% over the past year, far outpacing the healthcare industry's 5.8%. With a price-to-earnings ratio of 21.8x, NHC is attractively valued compared to the industry average of 28.4x. The company boasts no debt, a significant improvement from five years ago when its debt-to-equity ratio was 7.2%. Recent earnings reports show net income for Q2 at US$26.84 million, up from US$16.28 million last year, with basic EPS from continuing operations rising to US$1.74 from US$1.06

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

• Explore historical data to track National HealthCare's performance over time in our Past section.

Heritage Insurance Holdings

Simply Wall St Value Rating: ★★★★☆☆

Overview: Heritage Insurance Holdings, Inc., through its subsidiaries, provides personal and commercial residential insurance products and has a market cap of $374.96 million.

Operations: Heritage Insurance Holdings generates revenue primarily from its Property & Casualty insurance segment, amounting to $768.14 million. The company has a market cap of $374.96 million.

Heritage Insurance Holdings has shown impressive financial performance recently, with net income for the second quarter reaching US$18.87 million, up from US$7.78 million a year ago. The company’s earnings per share also improved to US$0.62 from US$0.3 in the same period last year. Its price-to-earnings ratio of 7.2x is favorable compared to the broader market's 17.2x, indicating potential undervaluation. Additionally, EBIT covers interest payments 6.9 times over, suggesting robust debt management capabilities.

• Dive into the specifics of Heritage Insurance Holdings here with our thorough health report.

• Assess Heritage Insurance Holdings' past performance with our detailed historical performance reports.

Valhi

Simply Wall St Value Rating: ★★★★★☆

Overview: Valhi, Inc. operates in the chemicals, component products, and real estate management and development sectors across Europe, North America, the Asia Pacific, and internationally with a market cap of $618.24 million.

Operations: Valhi, Inc. generates revenue primarily from its chemicals segment ($1.78 billion), followed by component products ($157.40 million) and real estate management and development ($78.50 million). The chemicals segment is the largest contributor to its overall revenue stream.

Valhi, Inc. has shown impressive performance recently, with earnings skyrocketing by 215.4% over the past year, outpacing the Chemicals industry’s -7.7%. The company reported second-quarter sales of US$559.7 million and net income of US$19.9 million, a significant turnaround from a net loss of US$3.2 million last year. Valhi's debt to equity ratio has improved from 78% to 38.7% over five years, reflecting better financial health and high-quality earnings bolstered by well-covered interest payments (4.7x EBIT).

• Delve into the full analysis health report here for a deeper understanding of Valhi.

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

Key Takeaways

• Click this link to deep-dive into the 222 companies within our US Undiscovered Gems With Strong Fundamentals screener.

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• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.

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• 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 NYSEAM:NHC NYSE:HRTG and NYSE:VHI.

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