As global markets navigate a holiday-shortened week with moderate gains in major indices, the decline in U.S. consumer confidence and manufacturing signals potential challenges ahead for small-cap companies. Amidst these economic indicators, investors may find opportunities by identifying stocks that demonstrate resilience and growth potential despite broader market fluctuations. In this context, uncovering lesser-known stocks with strong fundamentals and innovative business models can offer promising prospects for those looking to diversify their portfolios.

Click here to see the full list of 4636 stocks from our Undiscovered Gems With Strong Fundamentals screener.

Here's a peek at a few of the choices from the screener.

Simply Wall St Value Rating: ★★★★★★

Overview: Puuilo Oyj operates a discount retail chain in Finland with a market capitalization of €860.75 million.

Operations: The company generates revenue primarily from its retail department stores, amounting to €364.50 million.

Puuilo Oyj, a promising player in the retail sector, has demonstrated robust financial health with its interest payments well covered by EBIT at 13 times. Over the past five years, its debt to equity ratio impressively decreased from 165.6% to 65%, indicating prudent financial management. The company trades at a compelling valuation, being 26% below estimated fair value. Earnings grew by 10.3% last year, outpacing the industry average of -10.5%, showcasing high-quality earnings and solid growth prospects with forecasts suggesting a further annual increase of around 14.56%.

Simply Wall St Value Rating: ★★★★★☆

Overview: TKP Corporation offers meeting room rental services both in Japan and internationally, with a market cap of ¥52.97 billion.

Operations: TKP generates revenue primarily through its meeting room rental services in Japan and abroad. The company has experienced fluctuations in its net profit margin, which was recorded at 5.6% in the most recent period.