Over the last 7 days, the United States market has experienced a 4.4% drop, while remaining relatively flat over the past year, with earnings forecasted to grow by 13% annually. In this context, identifying small-cap stocks with potential insider buying can be an intriguing strategy for investors seeking opportunities that might offer growth potential in a stable but fluctuating market environment.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: ICF International provides professional services to a broad array of clients, with a market cap of approximately $2.41 billion.
Operations: ICF International generates revenue primarily from professional services, with a focus on delivering these to a wide range of clients. The company's cost structure includes significant expenses related to cost of goods sold and operating expenses, with general and administrative expenses being a notable component. Over recent periods, the gross profit margin has shown fluctuations but is currently at 36.53%.
PE: 14.0x
ICF International, a consulting and digital services provider, recently secured two recompete contracts worth over US$35 million with a Southern electric utility for DSM programs, showcasing their strength in energy management. The company also announced significant wins with the European Commission and U.K. Government totaling over US$210 million. Despite facing high debt levels and relying on external borrowing, ICF maintains financial flexibility through strategic capital allocation including share buybacks of 136,321 shares for US$18.18 million from October to December 2024. With earnings guidance suggesting stable performance ahead, ICF's proactive approach in acquisitions and innovation positions it well despite anticipated earnings decline challenges in the coming years.
Overview: Plymouth Industrial REIT is a real estate investment trust focused on owning and operating industrial properties, with a market capitalization of approximately $1.21 billion.
Operations: The primary revenue stream comes from industrial properties, with a recent gross profit margin of 68.06%. Operating expenses are significant, including general and administrative costs which were $14.76 million in the latest period.
PE: 4.8x
Plymouth Industrial REIT, a company with a focus on industrial properties, recently expanded its portfolio by acquiring several fully leased properties in Cincinnati and Atlanta for US$65.1 million, yielding an average NOI of 6.8%. The company's recent share repurchase program of up to US$90 million indicates insider confidence. Despite facing declining earnings projections and interest coverage challenges, Plymouth's strategic acquisitions and consistent dividend affirmations suggest a commitment to growth and shareholder returns.
Overview: Victoria's Secret is a specialty retailer known for its lingerie, beauty products, and apparel, with operations primarily focused on retail stores and a market capitalization of approximately $2.53 billion.
Operations: The company generates revenue primarily from its Retail - Specialty segment, with recent figures showing $6.23 billion. The cost of goods sold (COGS) consistently impacts profitability, with the latest gross profit margin at 36.66%. Operating expenses include notable allocations to general and administrative costs and sales & marketing efforts.
PE: 7.8x
Victoria's Secret, a smaller company in the market, has been making strategic moves to bolster its growth trajectory. Recent leadership appointments, including Anne Stephenson as President of Victoria’s Secret and Ali Dillion as President of PINK starting May 12, 2025, aim to leverage their extensive merchandising expertise. The company's recent earnings report showed an increase in net income to US$193 million for Q4 2025 from US$181 million the previous year. Despite its high debt levels and reliance on external funding, insider confidence is reflected through share purchases over recent months. As they continue expanding into ready-to-wear collections with designers like Joseph Altuzarra, Victoria's Secret seeks to enhance brand appeal and consumer engagement amidst a volatile share price environment.
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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.
