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

The market has climbed 2.6% in the last 7 days and is up 31% over the last 12 months, with earnings expected to grow by 15% per annum over the next few years. In this robust environment, identifying undervalued small-cap stocks with insider action can present compelling 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
Columbus McKinnon	20.9x	0.9x	42.08%	★★★★★★
Hanover Bancorp	9.1x	2.1x	49.78%	★★★★★☆
Thryv Holdings	NA	0.8x	20.52%	★★★★★☆
MYR Group	34.4x	0.5x	42.23%	★★★★☆☆
Franklin Financial Services	10.4x	2.0x	36.89%	★★★★☆☆
Delek US Holdings	NA	0.1x	16.78%	★★★★☆☆
Citizens & Northern	13.5x	3.0x	41.61%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Orion Group Holdings	NA	0.4x	-131.18%	★★★☆☆☆
Sabre	NA	0.4x	-52.91%	★★★☆☆☆

Click here to see the full list of 48 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

MYR Group (NasdaqGS:MYRG)

Simply Wall St Value Rating: ★★★★☆☆

Overview: MYR Group is a company that specializes in providing electrical construction services, including commercial and industrial projects as well as transmission and distribution infrastructure, with a market cap of approximately $1.92 billion.

Operations: The company generates revenue primarily from its Commercial & Industrial (C&I) and Transmission & Distribution (T&D) segments. Gross profit margin has shown variability, with a recent figure of 8.83% as of June 30, 2024. Operating expenses have been significant, including general and administrative costs amounting to $242.14 million in the same period.

PE: 34.4x

MYR Group, a small cap stock in the U.S., reported second-quarter 2024 sales of US$828.89 million, down from US$888.62 million a year ago, with a net loss of US$15.28 million compared to last year's net income of US$22.27 million. Despite this downturn, insider confidence is evident as they repurchased 117,422 shares for US$16.26 million between May and June 2024. The company’s focus on acquisitions and leveraging its strong balance sheet suggests potential growth opportunities ahead.

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

• Gain insights into MYR Group's historical performance by reviewing our past performance report.

Madison Square Garden Entertainment (NYSE:MSGE)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Madison Square Garden Entertainment operates a network of movie theaters and has a market cap of $1.23 billion.

Operations: Madison Square Garden Entertainment generates revenue primarily from movie theaters, with a recent quarterly revenue of $959.27 million. The company has experienced fluctuations in net income and gross profit margins, with the latest figures showing a net income margin of 15.04% and a gross profit margin of 42.97%.

PE: 14.0x

Madison Square Garden Entertainment, a small cap stock in the U.S., reported strong financials for the year ending June 30, 2024. Revenue grew to US$959.27 million from US$851.5 million last year, while net income nearly doubled to US$144.3 million from US$76.6 million. Basic earnings per share rose to US$2.99 from US$1.48 previously, indicating improved profitability despite primarily relying on external borrowing for funding and forecasted earnings decline over the next three years by an average of 17.7%.

• Click to explore a detailed breakdown of our findings in Madison Square Garden Entertainment's valuation report.

• Examine Madison Square Garden Entertainment's past performance report to understand how it has performed in the past.

Victoria's Secret (NYSE:VSCO)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Victoria's Secret is a global specialty retailer primarily focused on lingerie, beauty products, and intimate apparel with a market cap of approximately $2.45 billion.

Operations: Victoria's Secret generates revenue primarily from its retail specialty segment, which amounted to $6.13 billion as of the latest period. The company's gross profit margin has seen a range from 30.98% to 48.26%, with notable fluctuations over recent periods, reflecting changes in cost of goods sold and operating expenses.

PE: 14.8x

Victoria's Secret, a notable player in the U.S. small-cap market, has recently streamlined its executive team by eliminating two key roles on September 2, 2024. Despite slight sales declines to US$1.42 billion for Q2 2024 compared to US$1.43 billion last year, net income jumped to US$31.8 million from a loss of US$1.43 million previously reported for the same period last year. Insider confidence is evident with recent share purchases by executives in August and September 2024, signaling potential growth prospects despite short-term challenges like interest payments not being well covered by earnings.

• Unlock comprehensive insights into our analysis of Victoria's Secret stock in this valuation report.

• Gain insights into Victoria's Secret's past trends and performance with our Past report.

Summing It All Up

• Access the full spectrum of 48 Undervalued US Small Caps With Insider Buying by clicking on this link.
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Interested In Other Possibilities?

• 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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