Exploring 3 Undervalued Small Caps In United States With Insider Buying

The market has climbed 3.1% in the last 7 days and is up 25% over the last 12 months, with earnings forecast to grow by 15% annually. In this robust environment, identifying undervalued small-cap stocks with insider buying can offer promising opportunities for investors seeking value and potential growth.

Top 10 Undervalued Small Caps With Insider Buying In The United States

Name	PE	PS	Discount to Fair Value	Value Rating
Ramaco Resources	11.4x	0.9x	39.34%	★★★★★★
Columbus McKinnon	20.3x	0.9x	44.31%	★★★★★★
Chatham Lodging Trust	NA	1.3x	31.82%	★★★★★☆
Lindblad Expeditions Holdings	NA	0.7x	47.17%	★★★★★☆
Franklin Financial Services	9.6x	1.9x	39.21%	★★★★☆☆
Limbach Holdings	26.0x	1.3x	45.32%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Alta Equipment Group	NA	0.1x	-63.86%	★★★☆☆☆
Titan Machinery	3.2x	0.1x	-20.61%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-93.98%	★★★☆☆☆

Click here to see the full list of 69 stocks from our Undervalued US Small Caps With Insider Buying screener.

Underneath we present a selection of stocks filtered out by our screen.

Distribution Solutions Group (NasdaqGS:DSGR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Distribution Solutions Group operates through its subsidiaries Lawson, TestEquity, and Gexpro Services providing a range of industrial products and services with a market cap of approximately $1.03 billion.

Operations: The company generated revenue from Lawson ($463.59M), Testequity ($782.97M), and Gexpro Services ($402.23M). For the period ending June 30, 2024, revenue was $1.70B with a gross profit margin of 34.21%.

PE: -78.2x

Distribution Solutions Group (DSG) recently increased its borrowing capacity to US$1.06 billion, indicating a strategic push for acquisitions and growth. Despite reporting US$439.54 million in Q2 sales, net income fell to US$1.9 million from last year's US$3.02 million, reflecting some financial challenges. However, insider confidence is evident with share repurchases totaling $10.2 million completed by June 2024, suggesting management's belief in the company's potential despite recent delistings from several Russell indexes and a net loss of $3.33 million for the first half of 2024.

• Get an in-depth perspective on Distribution Solutions Group's performance by reading our valuation report here.

• Evaluate Distribution Solutions Group's historical performance by accessing our past performance report.

MYR Group (NasdaqGS:MYRG)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: MYR Group provides electrical construction services, specializing in commercial and industrial projects as well as transmission and distribution infrastructure, with a market cap of approximately $1.89 billion.

Operations: Revenue is derived from Commercial & Industrial (C&I) and Transmission & Distribution (T&D) segments, totaling $3.59 billion as of the latest period. Gross profit margin has shown variability, with a recent figure of 8.83%. Operating expenses include significant allocations towards General & Administrative costs and Non-Operating Expenses.

PE: 34.9x

MYR Group, a small-cap company in the U.S., recently announced plans to seek acquisitions, leveraging its strong balance sheet and future cash flows. In Q2 2024, MYR reported sales of US$828.89 million but faced a net loss of US$15.28 million compared to last year's net income of US$22.27 million. Despite lower profit margins (1.4% vs 2.6% last year), earnings are forecasted to grow by 52.68% annually, highlighting potential for future growth amidst current challenges.

• Unlock comprehensive insights into our analysis of MYR Group stock in this valuation report.

• Explore historical data to track MYR Group's performance over time in our Past section.

Petco Health and Wellness Company (NasdaqGS:WOOF)

Simply Wall St Value Rating: ★★★★★☆

Overview: Petco Health and Wellness Company operates a network of pet care centers offering products and services for pets, with a market cap of approximately $2.61 billion.

Operations: The company generates revenue primarily from retail specialty sales, with recent figures showing $6.23 billion in revenue. The cost of goods sold (COGS) is significant, most recently at $3.90 billion, impacting the gross profit margin which has declined to 37.38%.

PE: -0.6x

Petco Health and Wellness Company, a small cap stock in the U.S., has seen significant insider confidence with notable share purchases over the past six months. Recently, they launched an extensive Halloween Bootique collection featuring over 300 items, 90% priced under US$15. The company also appointed Joel D. Anderson as CEO on July 29, 2024, bringing substantial retail leadership experience. Despite revenue guidance of US$1.53 billion for Q2 2024 and recent earnings showing a net loss of US$46 million for Q1 2024, Petco remains focused on value creation initiatives under new leadership.

• Click here to discover the nuances of Petco Health and Wellness Company with our detailed analytical valuation report.

• Gain insights into Petco Health and Wellness Company's historical performance by reviewing our past performance report.

Taking Advantage

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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.

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