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Over the last 7 days, the United States market has risen by 1.2%, contributing to a 21% increase over the past year, with earnings forecasted to grow by 15% annually. In this favorable environment, identifying small-cap stocks with potential for growth and recent insider buying can offer intriguing opportunities for investors seeking value in an expanding market.
Top 10 Undervalued Small Caps With Insider Buying In The United States
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| McEwen Mining | 3.8x | 2.0x | 49.80% | ★★★★★☆ |
| OptimizeRx | NA | 1.2x | 40.18% | ★★★★★☆ |
| First United | 12.7x | 3.4x | 36.16% | ★★★★☆☆ |
| Quanex Building Products | 30.7x | 0.8x | 43.87% | ★★★★☆☆ |
| Innovex International | 9.2x | 2.1x | 48.25% | ★★★★☆☆ |
| Arrow Financial | 15.0x | 3.3x | 43.11% | ★★★☆☆☆ |
| West Bancorporation | 15.5x | 4.7x | 43.32% | ★★★☆☆☆ |
| Franklin Financial Services | 14.9x | 2.4x | 25.83% | ★★★☆☆☆ |
| Delek US Holdings | NA | 0.1x | -84.57% | ★★★☆☆☆ |
| Sabre | NA | 0.4x | -40.35% | ★★★☆☆☆ |
Underneath we present a selection of stocks filtered out by our screen.
Capital Southwest
Simply Wall St Value Rating: ★★★★★☆
Overview: Capital Southwest is a business development company focused on providing financing solutions to middle-market companies, with a market capitalization of approximately $0.52 billion.
Operations: The company's revenue primarily comes from its investment activities, with a recent quarterly revenue of $198.46 million. Operating expenses have shown variability, with the latest figure at $25.51 million. The net income margin has fluctuated over time, recently recorded at 33.49%.
PE: 17.5x
Capital Southwest, a smaller U.S. company, recently announced a supplemental dividend of US$0.06 and a regular dividend of US$0.58 per share for Q1 2025, indicating steady shareholder returns despite lower net income of US$16.27 million in Q3 2024 compared to the previous year’s US$23.48 million. Revenue grew to US$51.97 million from last year's US$48.57 million, hinting at potential growth amid insider confidence from recent share purchases throughout 2024's latter half, reflecting management's belief in future prospects despite financial hurdles like high-risk funding sources and decreased profit margins from 52% to 33%.
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Take a closer look at Capital Southwest's potential here in our valuation report.
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Understand Capital Southwest's track record by examining our Past report.
First United
Simply Wall St Value Rating: ★★★★☆☆
Overview: First United is a financial services company providing banking and related services, with a market cap of approximately $0.16 billion.
Operations: FUNC generates revenue entirely from its gross profit, with a consistent gross profit margin of 100% across all periods. Operating expenses are primarily driven by general and administrative expenses, which frequently exceed $30 million. The net income margin has shown variability, reaching as high as 33.82% in some periods but also dropping to lower levels such as 8.14%.