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As global markets show signs of recovery and hopes for a "soft landing" in the U.S. economy grow, small-cap stocks have also been on the rise, with indices like the Russell 2000 gaining momentum. Amid this optimistic backdrop, identifying undervalued small-cap stocks with notable insider activity can offer promising opportunities for investors looking to capitalize on market trends. In such a dynamic environment, a good stock often exhibits strong fundamentals and insider confidence, which can be particularly telling indicators of potential growth and resilience.
Top 10 Undervalued Small Caps With Insider Buying
Name | PE | PS | Discount to Fair Value | Value Rating |
---|---|---|---|---|
Ramaco Resources | 11.8x | 0.9x | 36.82% | ★★★★★★ |
Calfrac Well Services | 2.6x | 0.2x | 35.13% | ★★★★★★ |
Bytes Technology Group | 24.8x | 5.6x | 12.05% | ★★★★★☆ |
Thryv Holdings | NA | 0.8x | 23.62% | ★★★★★☆ |
Norcros | 7.4x | 0.5x | 4.45% | ★★★★☆☆ |
Primaris Real Estate Investment Trust | 11.0x | 2.9x | 45.05% | ★★★★☆☆ |
NSI | NA | 4.5x | 44.56% | ★★★☆☆☆ |
Sagicor Financial | 1.3x | 0.3x | -43.72% | ★★★☆☆☆ |
Community West Bancshares | 18.7x | 2.9x | 42.25% | ★★★☆☆☆ |
Delek US Holdings | NA | 0.1x | -91.86% | ★★★☆☆☆ |
Here's a peek at a few of the choices from the screener.
Codan
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Codan specializes in the development and manufacturing of communication equipment and metal detection technologies, with a market cap of approximately A$1.25 billion.
Operations: Codan's primary revenue streams are from its Communications segment, generating A$291.50 million, and Metal Detection segment, contributing A$212.20 million. The company's gross profit margin has shown fluctuations, reaching 54.42% in the latest period ending December 31, 2023.
PE: 34.9x
Codan, a small-cap company, reported impressive earnings for the year ending June 30, 2024. Sales rose to A$550.5 million from A$456.5 million last year, with net income increasing to A$81.3 million from A$67.7 million. Insider confidence is evident with notable share purchases over the past six months. Despite relying solely on external borrowing for funding, Codan's forecasted annual earnings growth of 16.2% suggests potential for future value appreciation in its sector.
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Click to explore a detailed breakdown of our findings in Codan's valuation report.
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Assess Codan's past performance with our detailed historical performance reports.
Distribution Solutions Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Distribution Solutions Group operates in the industrial distribution sector, providing a wide range of products and services through its segments Lawson, TestEquity, and Gexpro Services with a market cap of approximately $1.42 billion.