Undervalued Small Caps In United States With Insider Action For August 2024

Over the last 7 days, the United States market has risen 4.9%, contributing to a remarkable 26% increase over the past year, with earnings forecasted to grow by 15% annually. In this favorable environment, identifying undervalued small-cap stocks with insider action can offer promising opportunities for investors looking to capitalize on 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	11.8x	0.9x	37.13%	★★★★★★
Thryv Holdings	NA	0.7x	25.25%	★★★★★☆
AtriCure	NA	2.7x	39.92%	★★★★★☆
Titan Machinery	3.3x	0.1x	42.87%	★★★★★☆
Chatham Lodging Trust	NA	1.3x	30.65%	★★★★★☆
Lindblad Expeditions Holdings	NA	0.7x	45.23%	★★★★★☆
Franklin Financial Services	9.6x	1.9x	39.24%	★★★★☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Alta Equipment Group	NA	0.1x	-62.05%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-105.61%	★★★☆☆☆

Click here to see the full list of 65 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's review some notable picks from our screened stocks.

AtriCure (NasdaqGM:ATRC)

Simply Wall St Value Rating: ★★★★★☆

Overview: AtriCure is a medical device company specializing in surgical and medical equipment, with a market cap of approximately $2.18 billion.

Operations: AtriCure's primary revenue stream comes from its surgical and medical equipment segment, generating $429.95 million. The company reported a gross profit margin of 74.84% for the most recent period ending June 30, 2024, with net income showing a loss of $40.12 million. Operating expenses were substantial at $356.58 million, including significant R&D expenditures amounting to $81.41 million.

PE: -29.1x

AtriCure, a small-cap stock in the U.S., recently reported Q2 2024 earnings with sales of US$116.27 million, up from US$100.92 million year-over-year. Despite a net loss increase to US$8.01 million, insider confidence is evident with recent share purchases. The company expects full-year revenue between US$456 million and US$461 million for 2024, reflecting growth around 15%. Additionally, AtriCure secured regulatory approval in China for its AtriClip device, enhancing its market reach and potential future growth trajectory.

• Navigate through the intricacies of AtriCure with our comprehensive valuation report here.

• Review our historical performance report to gain insights into AtriCure's's past performance.

Distribution Solutions Group (NasdaqGS:DSGR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Distribution Solutions Group is a company that operates across various segments including Lawson, Testequity, and Gexpro Services with a market cap of $1.08 billion.

Operations: Distribution Solutions Group generates revenue primarily from Lawson ($463.59 million), Testequity ($782.97 million), and Gexpro Services ($402.23 million). The company reported a gross profit margin of 36.03% as of March 31, 2023, with operating expenses consistently increasing over recent periods, reaching $526.83 million by June 30, 2024. Net income has fluctuated significantly, with a notable loss of $21.23 million in the latest period ending August 19, 2024.

PE: -78.6x

Distribution Solutions Group (DSG) has shown significant activity recently, including an increase in borrowing capacity to US$1.06 billion and ongoing acquisition efforts. For Q2 2024, DSG reported sales of US$439.54 million but saw a net income drop to US$1.9 million from US$3.02 million the previous year. Insider confidence is evident with recent share repurchases totaling 55,844 shares for US$1.68 million between April and June 2024, reflecting management's belief in the company's potential despite being dropped from multiple Russell indices in July 2024.

• Take a closer look at Distribution Solutions Group's potential here in our valuation report.

• Explore historical data to track Distribution Solutions 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 as a retailer specializing in pet products, services, and veterinary care with a market cap of approximately $2.68 billion.

Operations: Petco Health and Wellness Company generates revenue primarily from its retail segment, amounting to $6.23 billion. The company has experienced fluctuations in its net income margin, with the most recent period showing a margin of -21.27%. Gross profit for the latest period stands at $2.33 billion with a gross profit margin of 37.38%.

PE: -0.6x

Petco Health and Wellness Company, a small-cap stock, has seen insider confidence with notable share purchases over the past six months. Recently added to the Russell 2000 Index, Petco's strategic moves include appointing Joel D. Anderson as CEO from July 29, 2024, known for driving substantial growth at Five Below. Their new fall product line and Halloween Bootique aim to boost seasonal sales while their revenue guidance for Q2 stands at US$1.525 billion.

• Click here and access our complete valuation analysis report to understand the dynamics of Petco Health and Wellness Company.

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

Where To Now?

• Dive into all 65 of the Undervalued US Small Caps With Insider Buying we have identified here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.

Looking For Alternative Opportunities?

• 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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