As global markets navigate a mixed landscape marked by fluctuating consumer confidence and shifting economic indicators, small-cap stocks continue to draw interest for their potential resilience and growth opportunities. In this environment, identifying promising stocks often involves looking for companies with strong fundamentals and innovative strategies that can thrive despite broader market uncertainties.

Click here to see the full list of 4638 stocks from our Undiscovered Gems With Strong Fundamentals screener.

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

Simply Wall St Value Rating: ★★★★★☆

Overview: Momentum Group AB (publ) provides industrial components and services to the industrial sector, with a market capitalization of approximately SEK8.79 billion.

Operations: Momentum Group AB (publ) generates revenue through supplying industrial components and services, with total revenue of SEK2.81 billion after adjustments.

Momentum Group, a dynamic player in the market, has been making waves with its recent performance. Over the past year, earnings grew by 14.5%, outpacing the Trade Distributors industry average of -2.1%. The company reported a net income of SEK 52 million for Q3 2024, up from SEK 42 million a year ago, with basic earnings per share increasing to SEK 1.05 from SEK 0.85. Despite having a high net debt to equity ratio of 44.9%, its interest payments are well covered by EBIT at an impressive 8.9 times coverage, showcasing financial resilience and potential for future growth amidst industry challenges.

Simply Wall St Value Rating: ★★★★★☆

Overview: Techno Ryowa Ltd. specializes in the design, construction, and maintenance of environmental control systems primarily in Japan, with a market capitalization of approximately ¥58.47 billion.