As we step into the new year, investors are on the lookout for undervalued stocks with strong fundamentals and growth potential. While the market has been volatile, there are still opportunities to be found in the small-cap and mid-cap sectors. In this article, we will explore three promising stocks that have been identified as "undiscovered gems" for January 2025.



1. Smart Share Global (NasdaqCM:EM)
Smart Share Global Limited is a consumer tech company offering mobile device charging services in the People's Republic of China. With a market cap of $258.19 million, the company has shown impressive growth, with a 24% increase in share price over the past year. Smart Share Global is trading at 51.8% below its estimated fair value, suggesting potential undervaluation opportunities for investors. The company has recently turned profitable and has an acquisition proposal valued at $130 million by Trustar Capital and others to acquire an 83% stake in Smart Share Global at $0.625 per share.



2. PC Connection (NasdaqGS:CNXN)
PC Connection, Inc., along with its subsidiaries, offers a range of IT solutions globally. With a market cap of approximately $1.83 billion, the company has shown robust earnings growth of 15.1% last year, outpacing the electronic industry's -5%. PC Connection is trading at about 15% below its estimated fair value, and the company is strategically investing in AI to boost customer engagement across healthcare and retail sectors. The company's recent share buyback saw 59,192 shares repurchased for US$3.91 million between July and September 2024.



3. REX American Resources (NYSE:REX)
REX American Resources Corporation focuses on the production and sale of ethanol in the United States. With a market capitalization of $766.63 million, the company has shown strong financial health with no debt and high-quality earnings. Recent expansions in ethanol production capacity and advancements in carbon capture technology are likely to drive revenue growth, though regulatory hurdles and margin pressures pose risks. REX American Resources is trading at 63% below its estimated fair value, with analysts projecting a potential upside as it navigates market dynamics effectively.



In conclusion, Smart Share Global, PC Connection, and REX American Resources are three promising stocks for January 2025, offering investors a mix of undervalued or overlooked status, strong fundamentals, growth potential, and unique market positions. As the market continues to evolve, these companies' fundamentals and growth prospects compare favorably to their respective sectors, making them attractive investment opportunities for investors seeking undervalued stocks with strong growth potential.