As the U.S. stock market continues to rebound, with major indexes like the Nasdaq reaching record highs, investor sentiment has been buoyed by easing concerns over tariffs and economic outlooks. In this dynamic environment, small-cap stocks can offer unique opportunities for growth as they often benefit from domestic economic resilience and innovation. When evaluating potential investments in this sector, it's important to consider factors such as insider activity and market positioning that might indicate strong future performance in today's competitive landscape.
Top 10 Undervalued Small Caps With Insider Buying In The United States
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Southside Bancshares | 10.1x | 3.4x | 39.88% | ★★★★★☆ |
| Tilray Brands | NA | 0.9x | 45.92% | ★★★★★☆ |
| Citizens & Northern | 10.9x | 2.7x | 45.06% | ★★★★☆☆ |
| S&T Bancorp | 10.7x | 3.6x | 41.81% | ★★★★☆☆ |
| Gentherm | 31.6x | 0.7x | 29.49% | ★★★★☆☆ |
| Lindblad Expeditions Holdings | NA | 1.0x | 18.25% | ★★★★☆☆ |
| Industrial Logistics Properties Trust | NA | 0.9x | 18.89% | ★★★★☆☆ |
| Shore Bancshares | 9.6x | 2.5x | -69.28% | ★★★☆☆☆ |
| PDF Solutions | 907.1x | 4.0x | 36.84% | ★★★☆☆☆ |
| Blue Bird | 15.1x | 1.2x | -11.71% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Blue Bird (BLBD)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Blue Bird is a company that specializes in the design and manufacture of school buses, with a market capitalization of approximately $0.77 billion.
Operations: The company generates revenue primarily from its Bus segment, amounting to $1.32 billion, and a smaller portion from Parts at $104.40 million. The gross profit margin has shown variability over the periods, with recent figures reaching 19.47%. Operating expenses have been a significant cost factor, including general and administrative expenses which recently totaled $123.93 million.
PE: 15.1x
Blue Bird, a U.S.-owned school bus manufacturer, recently announced a US$100 million share repurchase program, signaling insider confidence. The company posted Q3 2025 sales of US$398 million and net income of US$36.46 million, reflecting growth from the previous year. Delivering 25 electric buses to Little Rock School District highlights their commitment to clean transportation. Despite relying on external borrowing for funding, Blue Bird's projected earnings growth of 8.74% annually suggests potential for future value enhancement in the market.
Embecta (EMBC)
Simply Wall St Value Rating: ★★★★★☆
Overview: Embecta is a company that specializes in the production and distribution of disposable medical products, with a market capitalization of $1.56 billion.
Operations: Embecta generates its revenue primarily from disposable medical products, with recent quarterly revenues reaching $1.10 billion. The company has experienced a decline in gross profit margin, which was 63.38% as of June 2025, compared to earlier periods where it was higher than 70%. Operating expenses have shown fluctuations, notably with general and administrative expenses consistently being a significant portion of the costs.
PE: 8.6x
Embecta, a smaller company in the healthcare sector, recently showcased positive earnings growth with Q3 2025 sales reaching US$295.5 million, up from US$272.5 million last year. Net income surged to US$45.5 million compared to US$14.7 million previously, indicating strong operational performance despite reliance on external borrowing for funding. Insider confidence is evident as insiders have been purchasing shares over recent months, suggesting belief in future prospects as earnings are forecasted to grow at 24.85% annually.
- Click to explore a detailed breakdown of our findings in Embecta's valuation report.
Evaluate Embecta's historical performance by accessing our past performance report.
Mativ Holdings (MATV)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Mativ Holdings operates in the Filtration & Advanced Materials and Sustainable & Adhesive Solutions segments, with a market capitalization of $0.81 billion.
Operations: Mativ Holdings generates revenue primarily from its Filtration & Advanced Materials and Sustainable & Adhesive Solutions segments, contributing $749.40 million and $1.22 billion respectively. The company has experienced fluctuations in its net income margin, with recent periods showing negative margins, such as -23.71% in September 2023 and -22.72% in March 2025, indicating challenges in profitability despite a gross profit margin of around 18%.
PE: -1.1x
Mativ Holdings, a small cap company, recently announced a quarterly dividend of US$0.10 per share amid challenging financial results. For Q2 2025, they reported sales of US$525.4 million with a net loss of US$9.5 million, reflecting increased losses compared to the previous year. Despite volatile share prices and reliance on external borrowing for funding, insider confidence is evident through recent stock purchases by executives in early 2025. The strategic partnership with Miru Smart Technologies showcases Mativ's commitment to innovation in smart window technology for automotive applications, potentially positioning them for future growth opportunities within this niche market segment.
- Dive into the specifics of Mativ Holdings here with our thorough valuation report.
Explore historical data to track Mativ Holdings' performance over time in our Past section.
Next Steps
- Dive into all 82 of the Undervalued US Small Caps With Insider Buying we have identified here.
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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.
Valuation is complex, but we're here to simplify it.
Discover if Embecta might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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