The market is up 1.2% over the last week and 26% over the last 12 months, with earnings forecast to grow by 15% annually. In this thriving environment, identifying undervalued small-cap stocks with insider action can be a promising strategy for investors seeking potential growth opportunities.

Top 10 Undervalued Small Caps With Insider Buying In The United States

Click here to see the full list of 65 stocks from our Undervalued US Small Caps With Insider Buying screener.

We're going to check out a few of the best picks from our screener tool.

Lindblad Expeditions Holdings

Simply Wall St Value Rating: ★★★★☆☆

Overview: Lindblad Expeditions Holdings operates expedition cruises and adventure travel experiences, with a market cap of approximately $0.53 billion.

Operations: Lindblad generates revenue primarily from its Lindblad and Land Experiences segments, with recent total revenues reaching $591.46 million. The company has experienced fluctuations in gross profit margin, which was 44.10% as of the latest period ending August 25, 2024.

PE: -10.1x

Lindblad Expeditions Holdings, a leader in expedition cruising, recently reported second-quarter sales of US$136.5 million, up from US$124.8 million the previous year, despite a net loss of US$24.67 million remaining constant. Insider confidence is evident with recent insider purchases in August 2024 and the addition of two new directors with substantial industry experience. The company also expanded its fleet with two new Galápagos vessels set for revitalization by January 2025, aiming to enhance their adventurous offerings further.

• Click here to discover the nuances of Lindblad Expeditions Holdings with our detailed analytical valuation report.

• Evaluate Lindblad Expeditions Holdings' historical performance by accessing our past performance report.

American Woodmark

Simply Wall St Value Rating: ★★★★☆☆

Overview: American Woodmark manufactures and distributes kitchen, bath, and home organization products with a market cap of approximately $1.08 billion.

Operations: The company generated $1.85 billion in revenue primarily from manufacturing and distributing kitchen, bath, and home organization products. The gross profit margin was 20.45%, with notable operating expenses including sales and marketing at $92.60 million and general & administrative expenses at $124.01 million.

PE: 13.4x

American Woodmark, a small-cap company in the cabinetry industry, has shown signs of being undervalued. Recent insider confidence is evident with significant share purchases over the past six months. The company repurchased shares worth US$15 million in Q2 2024. Despite relying solely on external borrowing for funding, American Woodmark's strategic moves and market position suggest potential growth opportunities ahead.

• Take a closer look at American Woodmark's potential here in our valuation report.

• Learn about American Woodmark's historical performance.

Distribution Solutions Group

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Distribution Solutions Group operates in the industrial distribution sector, providing a variety of products and services through its Lawson, TestEquity, and Gexpro Services segments with a market cap of $1.23 billion.

Operations: Distribution Solutions Group's revenue streams include Lawson ($463.59 million), Testequity ($782.97 million), and Gexpro Services ($402.23 million). For the period ending 2024-06-30, the company reported revenue of $1.70 billion with a gross profit margin of 34.21%. The operating expenses were $526.83 million, including general and administrative expenses of $480.64 million, and non-operating expenses amounted to $75.90 million for the same period.

PE: -82.5x

Distribution Solutions Group recently increased its borrowing capacity from US$805 million to US$1.06 billion, indicating a strategic push for acquisitions. Despite a net loss of US$3.33 million for the first half of 2024, sales grew to US$855.62 million from US$726.25 million year-on-year. Insider confidence is evident with share repurchases totaling $10.2 million since April 2019, and the company remains focused on driving long-term value through strategic M&A activities despite being dropped from several Russell indexes in July 2024.

• Click to explore a detailed breakdown of our findings in Distribution Solutions Group's valuation report.

• Examine Distribution Solutions Group's past performance report to understand how it has performed in the past.

Key Takeaways

• Delve into our full catalog of 65 Undervalued US Small Caps With Insider Buying here.

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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.

Companies discussed in this article include NasdaqCM:LIND NasdaqGS:AMWD and NasdaqGS:DSGR.

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