Over the last 7 days, the market has dropped 4.2%. In contrast to the last week, the market is up 14% over the past year, with earnings expected to grow by 15% per annum over the next few years. In this context, identifying small-cap stocks that are undervalued and have insider buying can be a promising strategy for investors looking to capitalize on potential growth opportunities.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: Distribution Solutions Group operates in the distribution and supply chain services sector, providing a wide range of products and solutions through its subsidiaries Lawson, Testequity, and Gexpro Services, with a market cap of $1.50 billion.
Operations: Distribution Solutions Group generates revenue primarily from Lawson ($463.59 million), Testequity ($782.97 million), and Gexpro Services ($402.23 million). The company reported a gross profit margin of 34.21% as of the latest period, reflecting an upward trend from 25.08% in late 2021. Operating expenses and non-operating expenses have consistently increased, impacting net income margins, which have fluctuated significantly over recent periods, ranging from -1.25% to 1.68%.
PE: -73.3x
Distribution Solutions Group, Inc. (DSG) is actively seeking acquisitions to drive long-term value, with a strategic M&A pipeline and clear capital allocation objectives. Recent earnings for Q2 2024 showed sales of US$439.54 million, up from US$377.98 million in the same period last year, though net income dropped to US$1.9 million from US$3.02 million. Despite being dropped from several Russell indexes in July 2024, insider confidence remains high with recent share purchases indicating potential future growth opportunities for this small cap stock.
Overview: B&G Foods is a company that manufactures, sells, and distributes a diverse portfolio of branded shelf-stable and frozen foods across North America with a market cap of approximately $1.22 billion.
Operations: BGS generates its revenue from various segments, with recent figures showing $2.03 billion in revenue and a gross profit of $453.56 million as of March 30, 2024. The company has seen fluctuations in its net income margin, which was -5.42% for the same period. Operating expenses are significant, totaling $219.30 million, while non-operating expenses reached $344.11 million during this time frame.
PE: -6.2x
B&G Foods, known for its iconic New York City origins, recently reported second-quarter sales of US$444.59 million and net income of US$3.94 million, both down from the previous year. The company has declared a quarterly dividend of $0.19 per share payable on October 30, 2024. They also launched a unique pickleball bag in collaboration with Made by Alex and secured an additional $250 million in senior notes to manage debt more effectively. Insiders have shown confidence through recent share purchases, indicating potential growth despite current financial challenges.
Overview: Universal Health Realty Income Trust primarily invests in and leases healthcare and human service facilities, with a market cap of approximately $0.89 billion.
Operations: The primary revenue stream is investing in and leasing healthcare and human service facilities, generating $99.64 million. The company's gross profit margin has shown slight fluctuations, most recently at 94.58%. Operating expenses have been a significant cost factor, reaching $57.79 million as of the latest period.
PE: 32.6x
Universal Health Realty Income Trust, a smaller company in the U.S. market, reported strong earnings for Q2 2024 with sales of US$22.81 million and net income rising to US$5.28 million from US$3.48 million the previous year. They were added to multiple Russell indexes on July 1, 2024, enhancing their visibility among investors. Insider confidence is evident as insiders purchased shares recently, signaling potential growth prospects despite higher-risk external funding sources being their primary liability type.
This article by Simply Wall St is general in nature. 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. 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.
