In the current global market landscape, small-cap stocks have faced challenges, with indices like the S&P 600 underperforming amid cautious Federal Reserve commentary and political uncertainties. Despite these headwinds, economic indicators such as robust consumer spending and positive jobs data suggest potential opportunities within this segment. Identifying promising stocks in this environment often involves looking for companies with strong fundamentals and growth potential that can weather market volatility and capitalize on economic resilience.

Click here to see the full list of 4622 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: Thai Coconut Public Company Limited specializes in the production and distribution of coconut products in Thailand, with a market capitalization of THB17.79 billion.

Operations: The company generates revenue primarily from coconut milk and coconut water products, with coconut water contributing THB3.28 billion and coconut milk adding THB2.29 billion.

With earnings soaring 83.5% over the past year, Thai Coconut is making waves in the food industry, outpacing its peers' 29.3% growth. Trading at a substantial 43.9% below estimated fair value, it presents an intriguing opportunity for investors seeking undervalued stocks. The company has reported strong financials with third-quarter revenue hitting THB 1,928 million and net income of THB 172 million compared to last year's figures of THB 1,298 million and THB 153 million respectively. With a satisfactory net debt to equity ratio of 29.4%, Thai Coconut seems well-positioned for future growth prospects in its sector.

Simply Wall St Value Rating: ★★★★★★

Overview: Zhejiang Shaoxing RuiFeng Rural Commercial Bank Co., Ltd offers commercial banking products and services in China with a market capitalization of CN¥11.11 billion.