Top Undervalued Small Caps With Insider Action In October 2024

In October 2024, global markets have shown varied performances, with U.S. small-cap indices like the Russell 2000 and S&P MidCap 400 outperforming their larger counterparts, reflecting a renewed investor interest in smaller companies amid easing geopolitical tensions and robust consumer spending. As economic indicators reveal mixed signals—such as strengthening retail sales but weakening industrial output—investors are keenly observing small-cap stocks that may be positioned to capitalize on these dynamics. In this context, identifying stocks with strong fundamentals and insider activity can be crucial for investors seeking opportunities in the evolving market landscape.

Top 10 Undervalued Small Caps With Insider Buying

Name	PE	PS	Discount to Fair Value	Value Rating
Senior	17.4x	0.5x	39.15%	★★★★★★
Trican Well Service	7.2x	0.9x	19.25%	★★★★★☆
Franklin Financial Services	9.6x	1.9x	38.28%	★★★★☆☆
Sagicor Financial	1.3x	0.3x	-45.47%	★★★★☆☆
Essentra	727.5x	1.4x	26.31%	★★★★☆☆
Optima Health	NA	1.3x	38.83%	★★★★☆☆
Robert Walters	41.5x	0.2x	41.99%	★★★☆☆☆
Studsvik	21.9x	1.3x	39.39%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Petra Diamonds	NA	0.2x	-34.21%	★★★☆☆☆

Click here to see the full list of 195 stocks from our Undervalued Small Caps With Insider Buying screener.

Let's take a closer look at a couple of our picks from the screened companies.

Oxford Instruments (LSE:OXIG)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Oxford Instruments is a company that specializes in providing high-technology tools and systems for research, discovery, service, healthcare, materials analysis, and characterization with a market cap of £1.43 billion.

Operations: Oxford Instruments generates revenue primarily from three segments: Materials & Characterisation (£252.20 million), Research & Discovery (£142.10 million), and Service & Healthcare (£76.10 million). A notable trend is the net income margin, which has shown fluctuations over time, reaching 13.28% in September 2023 before declining to 10.78% by October 2024. The company faces significant operating expenses, including sales and marketing as well as research and development costs, which impact its profitability metrics.

PE: 24.1x

Oxford Instruments, a company known for its scientific instrumentation, has been actively participating in industry conferences, enhancing its visibility and networking opportunities. Despite relying entirely on external borrowing for funding—a riskier approach compared to customer deposits—the firm anticipates earnings growth of 10% annually. Insider confidence is evident with recent share purchases by executives since July 2024. As they prepare to release their first half 2025 sales statement, there is cautious optimism around their growth trajectory.

• Delve into the full analysis valuation report here for a deeper understanding of Oxford Instruments.

• Gain insights into Oxford Instruments' past trends and performance with our Past report.

Bloomin' Brands (NasdaqGS:BLMN)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Bloomin' Brands operates a portfolio of casual dining restaurant brands, primarily in the United States and internationally, with a market capitalization of approximately $2.20 billion.

Operations: The company generates revenue primarily from its United States segment, contributing approximately $3.97 billion, while the international segment adds around $615.57 million. The gross profit margin has shown variability, with a recent figure of 17.52%. Operating expenses and cost of goods sold are significant components affecting profitability, with operating expenses recently recorded at $438.43 million and COGS at $3.77 billion.

PE: 43.2x

Bloomin' Brands, a small company in the restaurant industry, is experiencing financial challenges with declining profit margins and earnings. Despite this, insider confidence is evident as executives have been purchasing shares throughout 2024. The company recently increased its revolving credit facility to US$1.2 billion, extending maturity to 2029, indicating strategic financial maneuvering amidst high debt levels. New CEO Mike Spanos brings fresh leadership from Delta Air Lines, potentially steering future growth and operational improvements.

• Take a closer look at Bloomin' Brands' potential here in our valuation report.

• Examine Bloomin' Brands' past performance report to understand how it has performed in the past.

Sabre (NasdaqGS:SABR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Sabre is a technology solutions provider specializing in software and services for the global travel and hospitality industries, with a market capitalization of approximately $1.31 billion.

Operations: Sabre's revenue primarily comes from its Travel Solutions and Hospitality Solutions segments, generating $2.70 billion and $315.74 million respectively. The company has experienced fluctuations in its net income margin, with recent figures showing a negative trend at -15.12%. Gross profit margin has been notable, reaching 59.47% in the latest period, indicating a strong ability to manage cost of goods sold relative to revenue despite operating losses.

PE: -3.1x

Sabre, a technology-driven company in the travel industry, has been attracting attention as an undervalued stock. Recent insider confidence is evident with share purchases over the past year, suggesting belief in its potential. The company is making strides with strategic agreements like those with Riyadh Air and Arajet, showcasing its innovative SabreMosaic platform powered by AI for personalized airline retailing. Despite facing net losses of US$69.76 million in Q2 2024, earnings are forecasted to grow significantly at 90% annually. The appointment of Eric L. Kelly to the board brings valuable expertise in technology and strategic business transformations, potentially enhancing future growth prospects amidst competitive challenges.

• Click here and access our complete valuation analysis report to understand the dynamics of Sabre.

• Learn about Sabre's historical performance.

Key Takeaways

• Click this link to deep-dive into the 195 companies within our Undervalued Small Caps With Insider Buying screener.
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Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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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