As global markets continue to navigate a landscape of mixed economic signals, with major indices like the S&P 500 hitting record highs while the Russell 2000 experiences a slight downturn, investors are keenly observing small-cap stocks for potential opportunities. In this environment, identifying stocks with strong fundamentals becomes crucial as they can offer resilience and growth potential amidst fluctuating market conditions.

Click here to see the full list of 4648 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: Sanlorenzo S.p.A. designs, builds, and sells boats and pleasure boats globally, with a market capitalization of approximately €1.12 billion.

Operations: Sanlorenzo S.p.A. generates revenue primarily from its Yacht Division (€547.46 million), Superyacht Division (€279.45 million), and Bluegame Division (€94.85 million). The company's net profit margin reflects its profitability trends over time, providing insight into how effectively it converts revenue into profit after expenses.

Sanlorenzo, a notable player in the yacht manufacturing sector, has shown promising financial figures. Over the past year, its earnings grew by 11%, outpacing industry averages. The company trades at an attractive value, approximately 36% below its estimated fair value. Sanlorenzo's debt management is commendable with a reduction from a debt-to-equity ratio of 57% to 29% over five years. Recent results revealed sales of €742 million for nine months ending September 2024, up from €671 million the previous year. Although not free cash flow positive recently, it maintains profitability and holds more cash than total debt.

Simply Wall St Value Rating: ★★★★★★

Overview: Mavi Giyim Sanayi ve Ticaret A.S. is involved in the wholesale and retail sale of ready-to-wear denim apparel for men, women, and children, with a market capitalization of TRY36.23 billion.