3 Undervalued Small Caps In United States With Significant Insider Buying

In the last week, the market has been flat, but it is up 34% over the past year with earnings forecast to grow by 15% annually. In this environment, identifying small-cap stocks that are undervalued and have significant insider buying can present unique opportunities for investors seeking potential growth.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Columbus McKinnon	22.0x	1.0x	40.85%	★★★★★★
Hanover Bancorp	9.1x	2.1x	49.34%	★★★★★☆
Thryv Holdings	NA	0.7x	26.80%	★★★★★☆
Scholastic	35.4x	0.5x	46.49%	★★★★☆☆
MYR Group	34.4x	0.5x	42.13%	★★★★☆☆
German American Bancorp	13.6x	4.5x	47.72%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Sabre	NA	0.5x	-69.32%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-217.33%	★★★☆☆☆
Industrial Logistics Properties Trust	NA	0.7x	-234.62%	★★★☆☆☆

Click here to see the full list of 54 stocks from our Undervalued US Small Caps With Insider Buying screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Columbus McKinnon (NasdaqGS:CMCO)

Simply Wall St Value Rating: ★★★★★★

Overview: Columbus McKinnon specializes in manufacturing and marketing material handling products and systems, with a market cap of approximately $1.34 billion.

Operations: The company's revenue primarily comes from the Machinery & Industrial Equipment segment, generating $1.02 billion. For the period ending June 30, 2024, the gross profit margin was 37.08%, with operating expenses amounting to $270.03 million and net income standing at $45.98 million.

PE: 22.0x

Columbus McKinnon, a small-cap company in the U.S., recently saw insider confidence with share purchases. Despite reporting Q1 2024 sales of US$239.73 million, up from US$235.49 million last year, net income dipped slightly to US$8.63 million from US$9.28 million previously. The company forecasts low-single-digit growth for FY 2025 and announced a quarterly dividend of US$0.07 per share payable on August 19, 2024. Jon Adams will assume the role of President, Americas following Terry Schadeberg's retirement on September 20, 2024.

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

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

MYR Group (NasdaqGS:MYRG)

Simply Wall St Value Rating: ★★★★☆☆

Overview: MYR Group is a company that provides electrical construction services, focusing on commercial and industrial projects as well as transmission and distribution operations, with a market cap of approximately $1.85 billion.

Operations: The company generates revenue from two primary segments: Commercial & Industrial (C&I) and Transmission & Distribution (T&D). Over recent periods, the net income margin has shown variability, with a notable trend of decreasing net income margins in the latest quarter at 1.37%. Operating expenses have consistently included significant General & Administrative costs, which have impacted overall profitability.

PE: 34.4x

MYR Group, a small player in the construction services sector, has shown insider confidence with notable share purchases. From May to June 2024, they repurchased 117,422 shares for US$16.26 million. However, recent earnings reveal challenges: Q2 sales dropped to US$828.89 million from US$888.62 million last year, and net loss hit US$15.28 million compared to a previous net income of US$22.27 million. Despite these setbacks, MYR's strong balance sheet supports future acquisitions and growth initiatives as stated by their CFO in August 2024.

• Dive into the specifics of MYR Group here with our thorough valuation report.

• Learn about MYR Group's historical performance.

Varex Imaging (NasdaqGS:VREX)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Varex Imaging specializes in manufacturing X-ray imaging components for medical and industrial applications, with a market cap of approximately $0.86 billion.

Operations: Varex Imaging generates revenue primarily from its Medical and Industrial segments, with recent figures showing $601 million and $231.70 million respectively. The company's net income margin has shown variability, most recently at 5.40% as of September 2023, after experiencing negative margins in previous periods such as -8.81% in January 2021.

PE: 14.2x

Varex Imaging, a smaller player in the imaging technology sector, has recently seen insider confidence with CFO Shubham Maheshwari purchasing 10,000 shares valued at US$108,200. Despite being dropped from multiple S&P indices on September 7, 2024, Varex forecasts earnings growth of 16.15% annually. However, recent financials show a decline in Q3 sales to US$209.1 million from US$232.2 million last year and net income falling to US$1.4 million from US$9.1 million previously.

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

• Examine Varex Imaging's past performance report to understand how it has performed in the past.

Seize The Opportunity

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Curious About Other Options?

• 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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