In the last week, the United States market has stayed flat, yet it is up 11% over the past year with earnings forecasted to grow by 14% annually. In this environment, identifying small-cap stocks with strong fundamentals and insider buying can be an effective strategy for investors seeking opportunities in potentially undervalued companies.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: Advantage Solutions operates as a provider of outsourced sales and marketing services with a focus on branded, retailer, and experiential services and has a market cap of approximately $1.42 billion.
Operations: The company's revenue primarily comes from Branded Services, Retailer Services, and Experiential Services. Over recent periods, its gross profit margin has shown fluctuations, with a notable decrease to 12.44% by the end of 2024. Operating expenses are significant and include general and administrative costs as well as depreciation and amortization expenses.
PE: -1.0x
Advantage Solutions, a smaller company in the U.S. market, recently reported a first-quarter sales drop to US$821.79 million from US$861.41 million year-on-year, with net losses widening to US$56.13 million from US$5.31 million previously. Despite these challenges, insider confidence is evident through share purchases between October and December 2024 totaling 1.18 million shares for US$3.87 million, suggesting belief in future potential amidst leadership changes and strategic shifts in their business model under new executives like Dean General and Daniel Gore.
Overview: Topgolf Callaway Brands operates in the sports and entertainment industry, focusing on golf-related products and services, with a market capitalization of approximately $3.7 billion.
Operations: Topgolf Callaway Brands generates revenue primarily from three segments: Topgolf, Golf Equipment, and Active Lifestyle. The company has experienced fluctuations in its gross profit margin, reaching 45.37% at one point but more recently recorded at 31.70%. Operating expenses are a significant component of costs, with General & Administrative Expenses consistently forming a substantial portion of these costs over the periods observed.
PE: -0.9x
Topgolf Callaway Brands, a smaller player in its industry, recently reported Q1 2025 revenues of US$1.09 billion, slightly down from last year. Net income also saw a decrease to US$2.1 million from US$6.5 million previously. Despite this dip, insider confidence is evident with recent share purchases by executives in early 2025, signaling potential optimism about future prospects. The company has partnered with Verizon for exclusive customer experiences and anticipates full-year revenues between US$4 billion and US$4.185 billion for 2025.
Overview: Victoria's Secret is a specialty retailer known for its lingerie, beauty products, and apparel with operations primarily in the retail segment and a market capitalization of approximately $2.51 billion.
Operations: Victoria's Secret generates revenue primarily through its retail specialty segment, with recent figures showing $6.23 billion in sales. The company has seen fluctuations in its net income margin, reaching a high of 11.34% and a low of 1.65%. Operating expenses are significant, with general and administrative costs consistently around $1.53 billion to $1.54 billion over the recent periods analyzed.
PE: 11.4x
Victoria's Secret, a smaller company in the U.S. market, shows potential despite its high debt and volatile share price. Recent leadership changes aim to drive growth with seasoned executives like Anne Stephenson and Ali Dillion assuming key roles. Earnings for the last quarter reached US$2.1 billion, slightly up from the previous year, while net income increased to US$193 million. The company's strategic moves suggest a focus on brand evolution and customer engagement amidst financial challenges.
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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.
