Insider Buying Highlights These 3 Undervalued Small Caps In United States
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Over the last 7 days, the United States market has remained flat, yet it is up 32% over the past year with earnings expected to grow by 15% per annum in the coming years. In such a dynamic environment, identifying stocks that are potentially undervalued with insider buying can be an intriguing strategy for investors looking to capitalize on future growth opportunities.
Top 10 Undervalued Small Caps With Insider Buying In The United States
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Vital Energy | 4.4x | 0.6x | 49.34% | ★★★★★☆ |
| Franklin Financial Services | 9.7x | 1.9x | 39.22% | ★★★★☆☆ |
| MYR Group | 35.0x | 0.5x | 41.05% | ★★★☆☆☆ |
| Community West Bancshares | 18.7x | 2.9x | 42.25% | ★★★☆☆☆ |
| Orion Group Holdings | NA | 0.3x | -112.37% | ★★★☆☆☆ |
| HighPeak Energy | 12.6x | 1.6x | 32.65% | ★★★☆☆☆ |
| Sabre | NA | 0.5x | -64.63% | ★★★☆☆☆ |
| Delek US Holdings | NA | 0.1x | -206.04% | ★★★☆☆☆ |
| National Vision Holdings | NA | 0.4x | -39.37% | ★★★☆☆☆ |
| Industrial Logistics Properties Trust | NA | 0.7x | -232.46% | ★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
HighPeak Energy
Simply Wall St Value Rating: ★★★☆☆☆
Overview: HighPeak Energy is engaged in the development, exploration, and production of oil and natural gas with a market capitalization of approximately $2.06 billion.
Operations: The company derives its revenue primarily from oil and natural gas development, exploration, and production. Over recent periods, it has shown a gross profit margin peaking at 85.71% and generally remaining above 82%. Operating expenses have been significant, with depreciation and amortization being a notable component.
PE: 12.6x
HighPeak Energy, a smaller company in the energy sector, has seen its revenue rise to US$275.27 million in Q2 2024 from US$240.76 million the previous year, although net income slightly decreased to US$29.72 million. They declared a quarterly dividend of US$0.04 per share and repurchased 413,449 shares for US$5.79 million between April and June 2024, indicating insider confidence in their future prospects despite lower profit margins and reliance on external borrowing for funding.
NewAmsterdam Pharma
Simply Wall St Value Rating: ★★★☆☆☆
Overview: NewAmsterdam Pharma is a biotechnology company focused on developing transformative therapies for cardiovascular diseases, with a market cap of $0.97 billion.
Operations: The company generates revenue primarily from its biotechnology segment, with recent figures showing $7.42 million. Despite consistently achieving a gross profit margin of 100%, it faces significant operating expenses, notably in research and development, which reached $165.47 million as of the latest period. This has resulted in a net income margin decline to -30.90%.