Discover November 2024's Undervalued Small Caps With Insider Activity In US

The United States market has shown robust performance recently, climbing 2.2% in the past week and 32% over the last year, with all sectors gaining ground and earnings projected to grow by 15% annually in the coming years. In this thriving environment, identifying stocks that are undervalued yet demonstrate insider activity can provide unique opportunities for investors seeking to align with potential growth drivers.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Thryv Holdings	NA	0.7x	47.07%	★★★★★☆
Capital Bancorp	14.6x	3.0x	46.59%	★★★★☆☆
USCB Financial Holdings	19.9x	5.7x	46.45%	★★★☆☆☆
First United	14.0x	3.2x	45.27%	★★★☆☆☆
Orion Group Holdings	NA	0.4x	-234.35%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
HighPeak Energy	12.0x	1.7x	30.20%	★★★☆☆☆
Tilray Brands	NA	1.5x	-80.99%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-75.93%	★★★☆☆☆
Sabre	NA	0.5x	-81.96%	★★★☆☆☆

Click here to see the full list of 41 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

SNDL (NasdaqCM:SNDL)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: SNDL operates in the liquor and cannabis sectors, with business segments including liquor retail, cannabis retail, and cannabis operations, and has a market capitalization of CA$1.23 billion.

Operations: The company generates revenue primarily from Liquor Retail and Cannabis Retail, with additional contributions from Cannabis Operations. The gross profit margin has shown an upward trend, reaching 25.12% as of September 2024. Operating expenses are significant, driven by general and administrative costs alongside sales and marketing efforts.

PE: -6.7x

SNDL, a company navigating the competitive landscape of consumer goods and liquor retail, has shown insider confidence through recent executive appointments. Phil McBride and Navroop Sandhawalia bring extensive experience in digital transformation and operational efficiency. Despite current unprofitability, SNDL's strategic buyback plan aims to return value to shareholders by repurchasing up to 13.2 million shares for CAD 100 million until November 2025. The company's focus on both organic growth and potential acquisitions highlights its ambition for future expansion despite higher-risk funding sources.

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

• Understand SNDL's track record by examining our Past report.

Thryv Holdings (NasdaqCM:THRY)

Simply Wall St Value Rating: ★★★★★☆

Overview: Thryv Holdings is a company that provides small and medium-sized businesses with marketing software and services, including customer relationship management tools, with a market cap of approximately $0.83 billion.

Operations: Thryv Holdings' revenue streams have shown fluctuations, with recent figures around $873.72 million. The cost of goods sold (COGS) has decreased over time, recently at $299.80 million, contributing to a gross profit margin of 65.69%. Operating expenses are significant and include sales and marketing costs, which were last reported at $275.74 million. The company has experienced varying net income margins, most recently at -38.87%, indicating ongoing financial challenges despite improvements in certain areas like COGS reduction and gross profit margin increase.

PE: -1.9x

Thryv Holdings, a smaller U.S. company, showcases potential for investors seeking undervalued opportunities. Despite recent financial challenges, including a net loss of US$96 million in Q3 2024 and diluted losses per share of US$2.65, insider confidence is evident with recent purchases over the past year. The company's innovative AI-enhanced social media tools could drive future growth by helping small businesses expand their online presence. However, reliance on higher-risk external borrowing remains a concern for some investors.

• Take a closer look at Thryv Holdings' potential here in our valuation report.

• Gain insights into Thryv Holdings' historical performance by reviewing our past performance report.

Smith Douglas Homes (NYSE:SDHC)

Simply Wall St Value Rating: ★★★★★☆

Overview: Smith Douglas Homes is a homebuilding company with operations primarily focused on constructing and selling residential homes, and it has a market cap of $1.25 billion.

Operations: The company generates revenue primarily from its homebuilding business, with a recent figure of $905.30 million. The cost of goods sold (COGS) has been increasing, reaching $665.08 million, impacting the gross profit margin which was last recorded at 26.54%. Operating expenses have also risen to $121.26 million, contributing to a declining net income margin now at 4.60%.

PE: 7.1x

Smith Douglas Homes, a smaller player in the housing market, has seen insider confidence with recent share purchases. Despite a challenging year where net profit margins dropped to 4.6% from 17.5%, the company reported Q3 sales of US$277.84 million, up from US$197.64 million last year, though net income fell significantly to US$5.35 million from US$33.93 million previously. Their strategic alliance with loanDepot for Ridgeland Mortgage aims to enhance growth in key markets like Atlanta and Houston, potentially boosting future prospects amidst their current reliance on higher-risk external funding sources.

• Get an in-depth perspective on Smith Douglas Homes' performance by reading our valuation report here.

• Explore historical data to track Smith Douglas Homes' performance over time in our Past section.

Where To Now?

• Reveal the 41 hidden gems among our Undervalued US Small Caps With Insider Buying screener with a single click here.
• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.
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Want To Explore Some Alternatives?

• 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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