Undervalued Small Caps With Insider Action To Watch In August 2024
In This Article:
As global markets continue to recover from the early August sell-off, hopes for a "soft landing" in the U.S. economy have buoyed investor sentiment. The S&P 600, which tracks small-cap stocks, has also seen gains amid this positive outlook. In such an environment, identifying undervalued small-cap stocks with significant insider action can offer promising opportunities for investors looking to capitalize on market momentum and potential growth.
Top 10 Undervalued Small Caps With Insider Buying
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Tokmanni Group Oyj | 15.4x | 0.4x | 38.33% | ★★★★★★ |
| Columbus McKinnon | 20.3x | 0.9x | 44.31% | ★★★★★★ |
| Norcros | 7.5x | 0.5x | 2.69% | ★★★★☆☆ |
| Trican Well Service | 8.0x | 1.0x | 7.09% | ★★★★☆☆ |
| Franklin Financial Services | 9.6x | 1.9x | 39.21% | ★★★★☆☆ |
| Hemisphere Energy | 6.8x | 2.5x | 13.42% | ★★★☆☆☆ |
| MYR Group | 34.9x | 0.5x | 40.99% | ★★★☆☆☆ |
| Sagicor Financial | 1.3x | 0.3x | -43.80% | ★★★☆☆☆ |
| Community West Bancshares | 18.7x | 2.9x | 42.25% | ★★★☆☆☆ |
| Titan Machinery | 3.2x | 0.1x | -20.61% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
Distribution Solutions Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Distribution Solutions Group is a diversified industrial distribution company with operations spanning Lawson, TestEquity, and Gexpro Services, and has a market cap of approximately $1.05 billion.
Operations: The company generates revenue primarily from Lawson ($463.59 million), Testequity ($782.97 million), and Gexpro Services ($402.23 million). Over recent periods, net income margins have fluctuated, reaching a high of 1.68% and a low of -1.25%. Gross profit margins have shown an upward trend, peaking at 36.03%.
PE: -78.2x
Distribution Solutions Group, Inc. recently increased its borrowing capacity to US$1.06 billion, aiming to fuel acquisitions and drive long-term value. Despite a drop in net income for Q2 2024 compared to last year, the company reported sales growth from US$378 million to US$440 million. Insider confidence is evident with recent share repurchases worth US$1.68 million between April and June 2024. The company's strategic M&A pipeline suggests potential future growth despite current financial challenges.
Mastek
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Mastek is an IT services company specializing in digital transformation solutions, with a market cap of ?7.12 billion.
Operations: The company generates revenue primarily from IT Services, with the latest reported revenue being ?31.42 billion. The gross profit margin has shown variations, reaching up to 1.50% and more recently recorded at 0.45%.