Undiscovered Gems in Sweden to Watch August 2024

In This Article:

Despite recent global market turbulence and a slowdown in the U.S. labor market, Sweden's small-cap sector continues to offer intriguing opportunities for investors. As we navigate through August 2024, it's essential to identify stocks with strong fundamentals and growth potential that can withstand broader economic uncertainties. In this context, discovering lesser-known companies with solid business models and innovative approaches can be particularly rewarding.

Top 10 Undiscovered Gems With Strong Fundamentals In Sweden

Name

Debt To Equity

Revenue Growth

Earnings Growth

Health Rating

Softronic

NA

3.58%

7.41%

★★★★★★

Bahnhof

NA

9.47%

15.07%

★★★★★★

AB Traction

NA

5.38%

5.19%

★★★★★★

Firefly

NA

15.31%

29.94%

★★★★★★

Creades

NA

-28.54%

-27.09%

★★★★★★

AQ Group

7.30%

14.89%

22.26%

★★★★★★

Linc

NA

56.01%

0.54%

★★★★★★

Rederiaktiebolaget Gotland

NA

-14.29%

18.06%

★★★★★★

Karnell Group

44.29%

22.04%

39.45%

★★★★★☆

Solid Försäkringsaktiebolag

NA

7.64%

28.44%

★★★★☆☆

Click here to see the full list of 51 stocks from our Swedish Undiscovered Gems With Strong Fundamentals screener.

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

CTT Systems

Simply Wall St Value Rating: ★★★★★☆

Overview: CTT Systems AB (publ) designs, manufactures, and sells humidity control systems for aircraft globally, with a market cap of SEK3.31 billion.

Operations: CTT Systems generates revenue primarily from its Aerospace & Defense segment, amounting to SEK317.70 million. The company has a market cap of SEK3.31 billion.

CTT Systems, a niche player in the Aerospace & Defense sector, has seen its earnings grow 6.5% annually over the past five years and is trading at 47.1% below its estimated fair value. The company reported SEK 175.4 million in revenue for H1 2024, with net income of SEK 49.1 million compared to SEK 42.7 million last year. With EBIT covering interest payments by a factor of 255x and more cash than total debt, CTT demonstrates robust financial health and promising growth prospects in cabin humidification solutions for major aircraft manufacturers like Airbus and Boeing.

OM:CTT Earnings and Revenue Growth as at Aug 2024
OM:CTT Earnings and Revenue Growth as at Aug 2024

Proact IT Group

Simply Wall St Value Rating: ★★★★★★

Overview: Proact IT Group AB (publ) offers data and information management services, focusing on cloud services and data center solutions across Sweden, the United Kingdom, the Netherlands, Germany, and other international markets, with a market cap of approximately SEK4.08 billion.

Operations: Proact IT Group AB (publ) generates revenue primarily from its Nordics & Baltics segment (SEK2.59 billion), followed by Central Europe (SEK876.95 million) and the UK (SEK684.62 million). The company also reports significant revenue from its West segment, encompassing Belgium and the Netherlands, amounting to SEK833.98 million.