Exploring December 2024's US Undervalued Small Caps With Insider Buying

Over the last 7 days, the United States market has experienced a 3.5% drop, yet it has shown resilience with a 22% rise over the past year and projected earnings growth of 15% per annum in the coming years. In this context, identifying stocks that are potentially undervalued can be crucial for investors seeking opportunities amidst fluctuating market conditions, particularly when insider buying suggests confidence from those closest to the company.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Capital Bancorp	14.5x	3.0x	46.70%	★★★★☆☆
Franklin Financial Services	10.0x	2.0x	38.71%	★★★★☆☆
McEwen Mining	4.0x	2.1x	47.89%	★★★★☆☆
ProPetro Holding	NA	0.6x	39.78%	★★★★☆☆
German American Bancorp	14.8x	4.9x	45.30%	★★★☆☆☆
First United	13.5x	3.1x	48.04%	★★★☆☆☆
Limbach Holdings	38.0x	1.9x	41.31%	★★★☆☆☆
Community West Bancshares	18.7x	2.9x	42.25%	★★★☆☆☆
Delek US Holdings	NA	0.1x	-52.10%	★★★☆☆☆
Sabre	NA	0.5x	-85.37%	★★★☆☆☆

Click here to see the full list of 44 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

ChromaDex (NasdaqCM:CDXC)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: ChromaDex is a bioscience company focused on research and development of proprietary ingredients, consumer products, and analytical reference standards and services, with a market cap of approximately $0.11 billion.

Operations: ChromaDex generates revenue primarily from consumer products, ingredients, and analytical reference standards and services. Over recent periods, the gross profit margin has shown an upward trend, reaching 61.45% by September 2024. Operating expenses are a significant cost component, with general and administrative expenses consistently being one of the largest categories within this segment.

PE: 278.9x

ChromaDex, a U.S. company with a market capitalization under $1 billion, is gaining attention for its growth potential despite recent share price volatility. The firm forecasts an 81.83% annual earnings increase and expects 15% revenue growth in 2024, driven by e-commerce and Niagen+ launches. Recent insider confidence was shown through share purchases in the past quarter. Despite relying on higher-risk external borrowing for funding, ChromaDex's innovative Niagen IV product rollout could enhance its market position significantly.

• Get an in-depth perspective on ChromaDex's performance by reading our valuation report here.

• Assess ChromaDex's past performance with our detailed historical performance reports.

Limbach Holdings (NasdaqCM:LMB)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Limbach Holdings is a company specializing in mechanical, electrical, and plumbing contracting services with a market cap of approximately $0.19 billion.

Operations: Limbach Holdings generates revenue primarily from Owner Direct Relationships (ODR) and General Contractor Relationships (GCR). The company has seen a notable increase in its gross profit margin, reaching 25.88% as of September 2024. Operating expenses, including general and administrative costs, are significant components of the cost structure.

PE: 38.0x

Limbach Holdings, a company with a focus on growth through acquisitions and high-margin offerings, recently reported solid financials for Q3 2024. Sales increased to US$133.92 million from US$127.77 million the previous year, while net income rose slightly to US$7.48 million. The company has raised its revenue guidance for 2024 to between US$520 million and US$540 million, reflecting confidence in its expansion strategy. Insider confidence is evident with recent purchases by executives, signaling potential value recognition in this small-cap stock's future prospects amidst industry challenges.

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

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

Tilray Brands (NasdaqGS:TLRY)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Tilray Brands operates in the cannabis, wellness, distribution, and beverage alcohol sectors with a market capitalization of approximately $1.48 billion.

Operations: The company generates revenue primarily from cannabis, beverage alcohol, distribution, and wellness sectors. Over recent periods, the gross profit margin has shown fluctuations with a notable increase to 30.31% as of August 2024. Operating expenses include significant allocations towards general and administrative costs and sales & marketing efforts.

PE: -4.9x

Tilray Brands, a cannabis-focused company, has been making strategic product expansions across its portfolio, including high-potency pre-rolls and innovative non-alcoholic beverages. Despite being unprofitable and reliant on external borrowing for funding, Tilray's recent appointment of Steven M. Cohen to the board signals potential strategic shifts. The company reported Q1 2025 sales of US$200 million with a net loss of US$39 million but reduced losses from the previous year. With no insider buying activity noted recently, Tilray continues to navigate challenges while exploring growth avenues through diverse product offerings.

• Click to explore a detailed breakdown of our findings in Tilray Brands' valuation report.

• Explore historical data to track Tilray Brands' performance over time in our Past section.

Where To Now?

• Unlock our comprehensive list of 44 Undervalued US Small Caps With Insider Buying by clicking here.
• Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
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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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