Exploring Undervalued Small Caps With Insider Actions In July 2024
In This Article:
As global markets show signs of recovery, with small-cap stocks like the Russell 2000 Index recently outperforming their larger counterparts, investors may find potential opportunities in undervalued small caps. In this context, understanding insider actions can provide valuable insights into promising stocks that might be overlooked by the broader market.
Top 10 Undervalued Small Caps With Insider Buying
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Semen Indonesia (Persero) | 13.2x | 0.7x | 20.85% | ★★★★★☆ |
| East West Banking | 3.4x | 0.7x | 49.83% | ★★★★★☆ |
| Healius | NA | 0.6x | 41.53% | ★★★★★☆ |
| Strike Energy | 301.9x | 73.9x | 48.54% | ★★★★☆☆ |
| China Leon Inspection Holding | 10.1x | 0.7x | 25.18% | ★★★★☆☆ |
| RAM Essential Services Property Fund | NA | 5.9x | 37.41% | ★★★★☆☆ |
| Dicker Data | 22.3x | 0.8x | -0.95% | ★★★☆☆☆ |
| Ever Sunshine Services Group | 6.1x | 0.4x | 14.60% | ★★★☆☆☆ |
| Tai Sin Electric | 15.4x | 0.5x | 3.32% | ★★★☆☆☆ |
| Community West Bancshares | 18.7x | 2.9x | 42.25% | ★★★☆☆☆ |
Here we highlight a subset of our preferred stocks from the screener.
Byline Bancorp
Simply Wall St Value Rating: ★★★★☆☆
Overview: Byline Bancorp is a bank holding company primarily engaged in offering banking products and services with a market capitalization of approximately $0.87 billion.
Operations: Banking operations have consistently reported a gross profit margin of 100%, with recent net income margins improving to approximately 0.31%. The business model demonstrates significant reliance on general and administrative expenses, which recently amounted to $184.24 million, alongside sales and marketing expenses of $3.80 million.
PE: 10.8x
Byline Bancorp recently showed robust financial performance, with a notable increase in net interest income to US$85.54 million and net income rising to US$30.44 million in the first quarter of 2024, compared to the previous year. This growth is underscored by insider confidence, as evidenced by recent share purchases. Additionally, Byline has secured an extended credit facility up to US$15 million until May 2025, enhancing its financial flexibility amid forecasts of a slight earnings decline over the next three years.
Provident Financial Services
Simply Wall St Value Rating: ★★★★★☆
Overview: Provident Financial Services is a financial institution offering traditional banking and other financial services, with a market capitalization of approximately $1.07 billion.
Operations: This entity generates a consistent gross profit margin of 100%, with its latest reported quarterly revenue at $441.20 million. Its net income margin has seen fluctuations, most recently recorded at 27.19%.