Over the last 7 days, the United States market has risen 2.9% and over the past year, it has climbed 11%, with earnings projected to grow by 14% per annum in the coming years. In this context of robust market performance, identifying stocks that are potentially undervalued with insider buying can offer intriguing opportunities for investors seeking to capitalize on growth potential within smaller companies.
Top 10 Undervalued Small Caps With Insider Buying In The United States
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Shore Bancshares | 10.7x | 2.4x | 5.99% | ★★★★★☆ |
| First United | 9.6x | 2.6x | 47.89% | ★★★★★☆ |
| MVB Financial | 11.2x | 1.5x | 28.34% | ★★★★★☆ |
| S&T Bancorp | 11.0x | 3.7x | 41.80% | ★★★★☆☆ |
| Thryv Holdings | NA | 0.8x | 13.52% | ★★★★☆☆ |
| German American Bancorp | 16.9x | 5.7x | 49.70% | ★★★☆☆☆ |
| West Bancorporation | 14.0x | 4.3x | 43.49% | ★★★☆☆☆ |
| Franklin Financial Services | 14.2x | 2.3x | 32.79% | ★★★☆☆☆ |
| PDF Solutions | 203.6x | 4.6x | 14.41% | ★★★☆☆☆ |
| Delek US Holdings | NA | 0.1x | -196.86% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
ArcBest (NasdaqGS:ARCB)
Simply Wall St Value Rating: ★★★★☆☆
Overview: ArcBest is a logistics company that provides freight transportation services through its asset-based and asset-light segments, with a market cap of $2.45 billion.
Operations: ArcBest generates revenue primarily from its Asset-Based segment, contributing $2.75 billion, and its Asset-Light segment with $1.55 billion. The company's gross profit margin has experienced fluctuations, peaking at 14.95% in Q1 2020 and reaching 9.10% by Q4 2024.
PE: 9.8x
ArcBest, a company with a market cap under US$1 billion, has caught attention due to its potential value amidst recent developments. Despite reporting lower fourth-quarter sales of US$1 billion compared to the previous year's US$1.09 billion, ArcBest's earnings per share increased annually from US$5.92 to US$7.36, indicating operational resilience. The company repurchased 146,529 shares for $15.17 million recently and introduced advanced logistics technology like Vaux Vision™, enhancing its competitive edge in material handling efficiency and sustainability metrics. With insider confidence evident through share purchases over time and strategic leadership changes focusing on customer-centric strategies, ArcBest aims for sustained growth in the logistics sector despite challenges such as non-compliance issues with Nasdaq rules which were promptly addressed by resignations and corrective actions ensuring compliance was regained by March 2025.
- Take a closer look at ArcBest's potential here in our valuation report.
Understand ArcBest's track record by examining our Past report.
Immersion (NasdaqGS:IMMR)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Immersion is a company specializing in haptic technology, creating tactile feedback solutions for various electronic devices, with a market cap of approximately $0.24 billion.
Operations: IMMR's revenue streams are primarily driven by its operations, with significant fluctuations in net income over time. The company's gross profit margin showed a notable increase from 74.81% to 99.13%, indicating changes in cost efficiency and pricing strategies. Operating expenses are a major component of costs, with General & Administrative Expenses being consistently high across periods analyzed.
PE: 3.9x
Immersion, a smaller company in the U.S. market, shows potential despite some risks. Their recent earnings report highlights a dramatic revenue surge to US$474.76 million from US$9.48 million year-on-year for the third quarter, with net income rising to US$15.47 million from US$2.68 million. Although earnings are expected to decline by 12.8% annually over the next three years, revenue is forecasted to grow significantly at 68.89% per year, suggesting dynamic business activity ahead despite high-risk funding reliance and declining profit margins compared to last year (40%). The company has actively repurchased shares since October 2024 and extended its buyback plan until December 2026, indicating management's confidence in future prospects amidst these mixed signals.
- Click here and access our complete valuation analysis report to understand the dynamics of Immersion.
Gain insights into Immersion's historical performance by reviewing our past performance report.
Genesco (NYSE:GCO)
Simply Wall St Value Rating: ★★★★★☆
Overview: Genesco is a specialty retailer and wholesaler of footwear, apparel, and accessories with operations primarily through its Schuh Group, Genesco Brands Group, Johnston & Murphy Group, and Journeys Group segments.
Operations: Journeys Group is the largest revenue contributor with $1.40 billion, followed by Schuh Group at $479.89 million and Johnston & Murphy Group at $320.21 million. The company has faced fluctuations in its net income margin, with recent periods showing negative margins as low as -1.41%. Gross profit margin has been around 47%, indicating how much of each dollar of revenue is retained after accounting for cost of goods sold (COGS).
PE: -13.0x
Genesco, a footwear-focused lifestyle retailer, recently reported fourth-quarter sales of US$745.95 million, up from US$738.95 million the previous year, with net income rising to US$34.38 million. The company's earnings per share also improved significantly over the same period. Despite a lack of recent insider confidence through share purchases or buybacks since November 2024, Genesco has previously completed substantial buybacks under its 2019 program. Future sales are expected to remain stable or slightly increase in 2026 despite foreign exchange and store closure impacts totaling approximately US$44 million combined.
- Get an in-depth perspective on Genesco's performance by reading our valuation report here.
Review our historical performance report to gain insights into Genesco's's past performance.
Taking Advantage
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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.
Valuation is complex, but we're here to simplify it.
Discover if Immersion might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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