As the U.S. stock market continues its upward trajectory, with major indices like the S&P 500 and Dow Jones Industrial Average reaching record highs, investors are keenly observing how these dynamics impact smaller companies within the S&P 600 Small Cap Index. Amidst this backdrop of economic optimism and anticipation surrounding key inflation reports, identifying small-cap stocks that exhibit potential value can be particularly appealing to investors looking for opportunities beyond the large-cap tech giants dominating headlines. In such a robust market environment, a good stock often combines strong fundamentals with strategic insider activity, offering insights into potential future performance.
Top 10 Undervalued Small Caps With Insider Buying In The United States
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| PCB Bancorp | 10.3x | 3.1x | 30.62% | ★★★★★☆ |
| Peoples Bancorp | 10.5x | 2.0x | 42.32% | ★★★★★☆ |
| First Northern Community Bancorp | 9.3x | 2.6x | 49.99% | ★★★★☆☆ |
| Thryv Holdings | NA | 0.7x | 29.02% | ★★★★☆☆ |
| GEN Restaurant Group | NA | 0.1x | -596.27% | ★★★★☆☆ |
| Industrial Logistics Properties Trust | NA | 0.9x | 19.12% | ★★★★☆☆ |
| Citizens & Northern | 11.8x | 2.9x | 39.93% | ★★★☆☆☆ |
| Shore Bancshares | 10.6x | 2.7x | -88.27% | ★★★☆☆☆ |
| Farmland Partners | 7.2x | 8.8x | -45.52% | ★★★☆☆☆ |
| NameSilo Technologies | NA | 2.4x | 49.02% | ★★★☆☆☆ |
Here's a peek at a few of the choices from the screener.
Harmonic (HLIT)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Harmonic operates in the technology sector, providing video delivery software and broadband solutions, with a market cap of approximately $1.6 billion.
Operations: Harmonic generates revenue primarily from its Broadband segment, contributing $488.16 million, and Video segment with $200.92 million. The company's gross profit margin has shown variability, reaching 55.47% in recent periods. Operating expenses are significant, with R&D being a notable component at $114.10 million recently.
PE: 16.1x
Harmonic, a player in the broadband and video streaming sectors, is gaining traction with its innovative cOS™ virtualized broadband platform. Recent announcements highlight advancements like DOCSIS 4.0 and AI-driven enhancements for live sports streaming. Despite facing financial challenges in previous years, Harmonic's Q2 2025 results showed a turnaround with US$2.87 million net income from a previous loss of US$12.53 million. Insider confidence is evident as they repurchased shares worth US$14.02 million between March and June 2025, signaling potential optimism about future growth prospects in this space.
- Click to explore a detailed breakdown of our findings in Harmonic's valuation report.
Assess Harmonic's past performance with our detailed historical performance reports.
Shore Bancshares (SHBI)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Shore Bancshares operates as a community banking organization with a focus on providing financial services, and it has a market capitalization of approximately $0.21 billion.
Operations: Shore Bancshares generates revenue primarily from its community banking segment, with significant operating expenses impacting net income margins. Over recent periods, the company has seen fluctuations in its net income margin, reaching 25.81% in the latest quarter. The general and administrative expenses form a large part of operating costs, contributing to overall financial performance dynamics.
PE: 10.6x
Shore Bancshares demonstrates potential as an undervalued stock, showcasing insider confidence with a recent purchase of 10,000 shares valued at US$150,000 by an insider named Michael Adams. Their earnings are projected to grow nearly 8% annually. For the second quarter ending June 2025, net interest income rose to US$47.25 million from US$42.14 million the previous year. Net income increased to US$15.51 million, while dividends were affirmed at $0.12 per share for August 2025 distribution.
Wendy's (WEN)
Simply Wall St Value Rating: ★★★★★☆
Overview: Wendy's is a global fast-food restaurant chain known for its hamburgers, operating primarily in the U.S. and internationally with additional revenue from global real estate and development, and has a market cap of approximately $4.48 billion.
Operations: The company's revenue primarily comes from its U.S. operations, with international markets and real estate development contributing smaller portions. Over the observed periods, gross profit margin has shown an upward trend, reaching 35.48% by mid-2025. Key cost components include COGS and operating expenses, which have been significant in determining profitability levels.
PE: 10.4x
Wendy's, a smaller player in the U.S. market, has shown insider confidence through significant share repurchases from March to August 2025, totaling $70.8 million for 5.6 million shares. Despite recent earnings showing slight declines in revenue and sales compared to last year, net income saw a modest increase with EPS improving from US$0.27 to US$0.29 for Q2 2025. Strategic global expansion is underway with franchise agreements in Italy and Armenia aiming for long-term growth outside the U.S., targeting 2,000 international restaurants by 2028 amidst leadership changes and revised guidance indicating lower sales growth expectations this year.
- Click here to discover the nuances of Wendy's with our detailed analytical valuation report.
Gain insights into Wendy's past trends and performance with our Past report.
Where To Now?
- Navigate through the entire inventory of 81 Undervalued US Small Caps With Insider Buying here.
- Are these companies part of your investment strategy? Use Simply Wall St to consolidate your holdings into a portfolio and gain insights with our comprehensive analysis tools.
- Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.
Contemplating Other Strategies?
- 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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Discover if Harmonic 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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