Undervalued Small Caps With Insider Buying in the United States – October 2024
The U.S. stock market has maintained a relatively flat performance recently; however, it has experienced a remarkable 38% increase over the past year. Analysts project a 15% annual growth rate in earnings, making this a promising period for investors. In this climate, identifying undervalued stocks can be particularly appealing, especially in the realm of small-cap companies where insider buying may signify confidence in future growth potential.
Top 10 Undervalued Small Caps With Insider Buying
Below is a curated list of ten undervalued small-cap stocks that have shown recent insider buying activity:
| Name | PE Ratio | PS Ratio | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Columbus McKinnon | 21.1x | 1.0x | 42.34% | ★★★★★☆ |
| Hanover Bancorp | 9.7x | 2.2x | 46.38% | ★★★★☆☆ |
| Franklin Financial Services | 9.6x | 1.9x | 38.28% | ★★★★☆☆ |
| HighPeak Energy | 11.7x | 1.5x | 37.12% | ★★★★☆☆ |
| German American Bancorp | 14.3x | 4.8x | 45.86% | ★★★☆☆☆ |
| Citizens & Northern | 13.4x | 2.9x | 44.54% | ★★★☆☆☆ |
| Community West Bancshares | 18.7x | 2.9x | 42.25% | ★★★☆☆☆ |
| Sabre | 0.5x | -43.51% | ★★★☆☆☆ | |
| Delek US Holdings | NA | 0.1x | -52.69% | ★★★☆☆☆ |
| Industrial Logistics Properties Trust | NA | 0.6x | -196.40% | ★★★☆☆☆ |
For those interested in a broader selection, the full list includes 52 stocks from our Undervalued US Small Caps With Insider Buying screener.
Selected Insights on Noteworthy Companies
Bloomin’ Brands
Value Rating: ★★★☆☆☆
Overview: Bloomin’ Brands operates well-known casual dining chains both within the U.S. and internationally, currently valued at approximately $2.11 billion. The company’s revenue from U.S. operations reaches $3.97 billion, compared to $615.57 million from international operations.
While the company faces challenges with high debt levels, recent insider purchases indicate confidence. A new credit agreement extends financing to 2029. Earnings forecasts promise substantial growth at an annual rate of 139.85% despite a dip in profits from $68.28 million to $28.4 million year-over-year for Q2 2024. CEO Mike Spanos’s new leadership might facilitate necessary improvements.
Sabre
Value Rating: ★★★☆☆☆
Overview: Sabre is a key player in travel technology with a market cap of around $1.19 billion. Its revenue is mainly generated from Travel Solutions and Hospitality Solutions, contributing $2.70 billion and $315.74 million, respectively.
Despite reporting a net loss of $69.76 million in Q2 2024, Sabre showcases a promising forecast of approximately $3 billion in revenue for the year. Recent partnerships underscore its innovation in the sector, signifying potential room for recovery.
Varex Imaging
Value Rating: ★★★☆☆☆
Overview: With a market cap of $0.85 billion, Varex Imaging specializes in components for X-ray imaging used in medical and industrial fields. The company generates considerable revenue from both medical and industrial segments.
Recently, insider buying by the CFO indicates a potential undervaluation despite ongoing struggles, as the company aims for a 16% annual growth rate in earnings despite experiencing declining sales.
Conclusion
As investors navigate the current market landscape, identifying undervalued small caps exhibiting insider confidence can provide promising investment opportunities. The detailed exploration of companies such as Bloomin’ Brands, Sabre, and Varex Imaging highlights the potential for recovery and growth, further underscored by recent insider activities. Investing carefully in these undervalued companies could yield favorable returns as the market evolves.