<div id="readability-page-1"><div><p>As the major U.S. stock indexes experience mixed performance following consecutive sessions of losses, investors are keenly observing market movements and economic indicators that could impact small-cap stocks. In this fluctuating environment, identifying promising opportunities requires a focus on companies with strong fundamentals and growth potential that may not yet be fully recognized by the broader market.</p><h3>Top 10 Undiscovered Gems With Strong Fundamentals In The United States</h3><table><tbody><tr><th>Name</th><th>Debt To Equity</th><th>Revenue Growth</th><th>Earnings Growth</th><th>Health Rating</th></tr><tr><td>First Bancorp</td><td>57.63%</td><td>1.47%</td><td>-2.43%</td><td>★★★★★★</td></tr><tr><td>Southern Michigan Bancorp</td><td>113.59%</td><td>8.48%</td><td>3.73%</td><td>★★★★★★</td></tr><tr><td>Senstar Technologies</td><td>NA</td><td>-15.82%</td><td>43.55%</td><td>★★★★★★</td></tr><tr><td>Sound Financial Bancorp</td><td>34.24%</td><td>1.40%</td><td>-12.55%</td><td>★★★★★★</td></tr><tr><td>Epsilon Energy</td><td>NA</td><td>2.43%</td><td>-4.36%</td><td>★★★★★★</td></tr><tr><td>First Northern Community Bancorp</td><td>NA</td><td>7.79%</td><td>11.96%</td><td>★★★★★★</td></tr><tr><td>FineMark Holdings</td><td>114.54%</td><td>2.38%</td><td>-28.53%</td><td>★★★★★★</td></tr><tr><td>Seneca Foods</td><td>41.64%</td><td>2.31%</td><td>-23.77%</td><td>★★★★★☆</td></tr><tr><td>NameSilo Technologies</td><td>12.63%</td><td>14.48%</td><td>3.12%</td><td>★★★★★☆</td></tr><tr><td>FRMO</td><td>0.10%</td><td>35.28%</td><td>40.61%</td><td>★★★★★☆</td></tr></tbody></table><p> Click here to see the full list of 297 stocks from our US Undiscovered Gems With Strong Fundamentals screener.     </p><p>Let's dive into some prime choices out of from the screener.</p><h2>Parke Bancorp (PKBK)</h2><p><strong>Simply Wall St Value Rating:</strong> ★★★★★★</p><p><strong>Overview:</strong> Parke Bancorp, Inc. is the bank holding company for Parke Bank, offering personal and business financial services to individuals and small to mid-sized businesses, with a market capitalization of approximately $289.89 million.</p><p><strong>Operations:</strong> Parke Bancorp generates revenue primarily from its community banking segment, amounting to $71.77 million.</p><p>Parke Bancorp, with assets totaling US$2.2 billion and equity of US$314.8 million, showcases its robust footing in the financial sector. The company has a net interest margin of 3% and holds total deposits of US$1.8 billion against loans worth US$1.9 billion, indicating a healthy balance sheet structure. Its high-quality earnings have seen a substantial growth rate of 20.5% over the past year, outpacing the industry average by 2%. With an allowance for bad loans at 272%, Parke Bancorp seems well-prepared to handle potential loan defaults while trading significantly below its estimated fair value by nearly half.</p><ul><li>Dive into the specifics of Parke Bancorp here with our thorough health report.</li><li>Review our historical performance report to gain insights into Parke Bancorp's's past performance.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c662580d-f759-4df7-b462-114a496c16cc/chart/debt-equity-history-analysis?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/c662580d-f759-4df7-b462-114a496c16cc/chart/debt-equity-history-analysis"/><figcaption>PKBK Debt to Equity as at Dec 2025</figcaption></figure><h2>Karat Packaging (KRT)</h2><p><strong>Simply Wall St Value Rating:</strong> ★★★★★★</p><p><strong>Overview:</strong> Karat Packaging Inc. specializes in manufacturing and distributing single-use disposable products for restaurant and foodservice settings, with a market cap of approximately $459.07 million.</p><p><strong>Operations:</strong> Karat Packaging generates revenue primarily from the manufacturing and supply of a diverse range of single-use products, totaling approximately $453.78 million. The company's financial performance is highlighted by its gross profit margin, which provides insight into its cost management and pricing strategies.</p><p>Karat Packaging appears to be navigating the packaging industry with a focus on sustainable solutions, catering to eco-conscious consumers and the booming takeout market. The company has seen its debt-to-equity ratio improve from 266% to 27.9% over five years, indicating better financial management. Despite net income for Q3 2025 dropping to US$7.33 million from US$9.09 million in the previous year, sales increased by nearly US$11 million over the same period, reaching US$124.52 million. With a price-to-earnings ratio of 15x below market average and high-quality earnings, Karat seems poised for steady growth amidst evolving industry dynamics and competition pressures.</p><ul><li>Karat Packaging's growth is driven by demand for sustainable packaging and operational enhancements. Click here to explore the full narrative on Karat Packaging.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0118f422-e067-4ade-8b1b-5871b4f6a307/chart/earnings-and-revenue-growth?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/0118f422-e067-4ade-8b1b-5871b4f6a307/chart/earnings-and-revenue-growth"/><figcaption>KRT Earnings and Revenue Growth as at Dec 2025</figcaption></figure><h2>Waterstone Financial (WSBF)</h2><p><strong>Simply Wall St Value Rating:</strong> ★★★★★★</p><p><strong>Overview:</strong> Waterstone Financial, Inc. is a bank holding company for WaterStone Bank SSB, offering a range of financial services in southeastern Wisconsin, with a market cap of $309.39 million.</p><p><strong>Operations:</strong> The company generates revenue primarily through its Mortgage Banking ($77.02 million) and Community Banking ($60.02 million) segments.</p><p>Waterstone Financial, with assets totaling US$2.3 billion and equity of US$345.5 million, stands out for its robust financial footing. The company boasts a sufficient allowance for bad loans at 295% and maintains an appropriate level of non-performing loans at 0.3%. Its earnings surged by 77.8% over the past year, surpassing industry growth rates significantly, while its price-to-earnings ratio of 12.9x suggests good value compared to the broader market's 19.2x. Waterstone has also actively repurchased shares recently, completing a significant buyback tranche that underscores confidence in its market position and future prospects.</p><ul><li>Take a closer look at Waterstone Financial's potential here in our health report.</li><li>Assess Waterstone Financial's past performance with our detailed historical performance reports.</li></ul><figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/078a7954-db48-4425-ae6e-6833433f34ca/chart/debt-equity-history-analysis?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/078a7954-db48-4425-ae6e-6833433f34ca/chart/debt-equity-history-analysis"/><figcaption>WSBF Debt to Equity as at Dec 2025</figcaption></figure><h2>Summing It All Up</h2><ul><li>Access the full spectrum of 297 US Undiscovered Gems With Strong Fundamentals by clicking on this link.</li><li>Invested in any of these stocks? Simplify your portfolio management with Simply Wall St and stay ahead with our alerts for any critical updates on your stocks.</li><li>Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.</li></ul><h2>Contemplating Other Strategies?</h2><ul><li>Explore high-performing small cap companies that haven't yet garnered significant analyst attention.</li><li>Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.</li><li>Find companies with promising cash flow potential yet trading below their fair value.</li></ul> <p><em> This article by Simply Wall St is general in nature. <strong>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.</strong> 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.</em></p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

PKBK

WSBF

<p>As U.S. stock indexes show mixed performance, investors are focusing on small-cap stocks with strong fundamentals. The article highlights three promising companies: Parke Bancorp, Karat Packaging, and Waterstone Financial, each demonstrating robust financial health and growth potential. Parke Bancorp has a strong balance sheet and a significant growth rate, Karat Packaging is improving its financial management while catering to sustainable packaging demands, and Waterstone Financial shows impressive earnings growth and a solid market position. These companies are considered undiscovered gems in the current market.</p>

Discover 3 Undiscovered Gems in the US Market