US Undiscovered Gems in May 2025

Simply Wall St.
05 May

The United States market has shown a positive trajectory, climbing 2.8% over the last week and 9.3% over the past year, with earnings anticipated to grow by 14% annually in the coming years. In this environment, identifying stocks with strong fundamentals and growth potential can offer unique opportunities for investors seeking to uncover hidden gems.

Top 10 Undiscovered Gems With Strong Fundamentals In The United States

Name Debt To Equity Revenue Growth Earnings Growth Health Rating
Wilson Bank Holding NA 7.87% 8.22% ★★★★★★
Morris State Bancshares 9.62% 4.26% 5.10% ★★★★★★
Oakworth Capital 42.08% 15.43% 7.31% ★★★★★★
Teekay NA -0.89% 62.53% ★★★★★★
Solesence 33.45% 23.87% -3.75% ★★★★★★
FineMark Holdings 122.25% 2.34% -26.34% ★★★★★★
Pure Cycle 5.11% 1.07% -4.05% ★★★★★☆
First IC 38.58% 9.04% 14.76% ★★★★☆☆
Reitar Logtech Holdings 31.39% 231.46% 41.38% ★★★★☆☆
Qudian 6.38% -68.48% -57.47% ★★★★☆☆

Click here to see the full list of 282 stocks from our US Undiscovered Gems With Strong Fundamentals screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Hackett Group

Simply Wall St Value Rating: ★★★★★☆

Overview: The Hackett Group, Inc. is a strategic consulting and executive advisory firm that leverages an intellectual property platform-based generative artificial intelligence to drive digital transformation across the United States, Europe, and internationally, with a market cap of $727.67 million.

Operations: Hackett Group generates revenue primarily from three segments: Global S&BT ($168.27 million), SAP Solutions ($56.28 million), and Oracle Solutions ($82.47 million).

Hackett Group is making strategic moves in the Gen AI space, with recent acquisitions and initiatives like the AI XPLR 3.0 platform and a joint venture with ZBrain, aiming to enhance revenue growth and profit margins. Despite its negative earnings growth of 13% last year, Hackett's debt remains manageable with interest payments covered 28 times by EBIT. The company trades at nearly 27% below its estimated fair value, suggesting potential upside from its current US$25.77 share price. With expected earnings growth of over 18% annually, Hackett seems poised for future expansion despite some challenges ahead.

  • Hackett Group's strategic focus on generative AI and acquisitions aims to enhance revenue and margins. Click here to explore the full narrative on Hackett Group's growth strategy.
NasdaqGS:HCKT Earnings and Revenue Growth as at May 2025

AdvanSix

Simply Wall St Value Rating: ★★★★★☆

Overview: AdvanSix Inc. is involved in the manufacture and sale of polymer resins both domestically and internationally, with a market capitalization of approximately $609.61 million.

Operations: AdvanSix generates revenue primarily from its chemical manufacturing segment, which reported $1.56 billion. The company's financial performance is highlighted by its net profit margin, which reflects the efficiency of converting revenue into actual profit after all expenses.

AdvanSix, a notable player in the chemicals sector, has demonstrated impressive earnings growth of 3634.7% over the past year, significantly outpacing the industry's -8.8%. Trading at 56% below its estimated fair value, it offers good relative value compared to peers. The company's net debt to equity ratio stands at a satisfactory 26%, with interest payments well covered by EBIT at 10.8 times. Recent financial results show sales of US$377.79 million for Q1 2025 and a net income turnaround to US$23.34 million from a previous loss, highlighting its potential as an investment opportunity amidst market challenges and competition pressures.

  • AdvanSix's revenue growth is bolstered by ammonium sulfate expansion and carbon capture tax credits. Click here to explore the full narrative on AdvanSix's strategic positioning and financial outlook.
NYSE:ASIX Debt to Equity as at May 2025

Stewart Information Services

Simply Wall St Value Rating: ★★★★☆☆

Overview: Stewart Information Services Corporation operates through its subsidiaries to provide title insurance and real estate transaction-related services both in the United States and internationally, with a market cap of approximately $1.87 billion.

Operations: Stewart Information Services generates revenue primarily from its Title (including Mortgage Services) segment, which accounts for $2.18 billion, and Real Estate Solutions segment, contributing $372.74 million.

Stewart Information Services, a smaller player in the title insurance space, has demonstrated impressive earnings growth of 75.4% over the past year, surpassing the industry's 7.7%. The company maintains a satisfactory net debt to equity ratio of 17.9%, with interest payments well covered by EBIT at 6.7 times coverage. Recent efforts include strategic acquisitions and expansion in key markets to boost margins and resilience against market fluctuations. With a dividend payout of US$0.50 per share for Q1 2025 and ongoing acquisition plans, Stewart is positioning itself for sustained growth amid improving market conditions.

  • Stewart Information Services' growth may be driven by strategic acquisitions and housing market recovery. Click here to explore the full narrative on Stewart Information Services.
NYSE:STC Debt to Equity as at May 2025

Seize The Opportunity

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Seeking Other Investments?

  • 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.

Companies discussed in this article include NasdaqGS:HCKT NYSE:ASIX and NYSE:STC.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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