Over the last 7 days, the United States market has experienced a 3.7% decline, although it has seen a longer-term increase of 6.9% over the past year, with earnings projected to grow by 14% annually. In this context, identifying small-cap stocks that are potentially undervalued and exhibit insider activity can offer unique opportunities for investors seeking to navigate these fluctuating market conditions.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: SolarEdge Technologies is a company that designs and manufactures solar energy solutions, with a market cap of approximately $7.63 billion.
Operations: The company primarily generates revenue from its solar segment, which accounted for $842.44 million. Over the observed periods, the gross profit margin showed significant fluctuation, peaking at 36.64% in June 2018 and dropping to -92.84% by December 2024. Operating expenses have consistently increased over time, with research and development being a significant component of these costs.
PE: -0.5x
SolarEdge Technologies, a smaller player in the U.S. market, has seen its share price fluctuate significantly over the past three months. The company recently appointed Asaf Alperovitz as CFO, bringing experience from leading financial roles at major firms. Despite current unprofitability and reliance on external borrowing for funding, SolarEdge anticipates revenue growth of 16.77% annually. Their partnership with Summit Ridge Energy to supply domestically-manufactured inverters could enhance their market position as they expand solar projects exceeding 100MW starting April 2025.
Overview: United Fire Group operates primarily in the property and casualty insurance sector with a market capitalization of approximately $0.67 billion.
Operations: The company's revenue primarily stems from its property and casualty insurance segment, with significant fluctuations in net income margin over the years. Notably, the net income margin experienced a low of -12.08% in 2020 and improved to 4.94% by late 2024.
PE: 11.3x
United Fire Group's recent performance highlights its potential as an undervalued investment. The company reported a significant revenue increase to US$1.25 billion for 2024, up from US$1.10 billion the previous year, alongside net income growth to US$61.96 million from a prior loss of US$29.7 million. Insider confidence is evident with George Milligan purchasing 3,500 shares worth approximately US$64,400 in February 2025, suggesting optimism about future prospects despite reliance on higher-risk external funding sources.
Overview: Everus Construction Group specializes in electrical and mechanical services as well as transmission and distribution, with a market cap of $3.25 billion.
Operations: The company's revenue streams primarily include Electrical & Mechanical (E&M) and Transmission and Distribution (T&D), contributing $2.03 billion and $837.15 million, respectively. Over recent periods, the gross profit margin has shown a trend of fluctuation, reaching 12.22% in September 2024 before adjusting to 11.91% by December 2024. Operating expenses have increased from $102.18 million in December 2021 to $149.54 million in December 2024, with general and administrative expenses being a significant component of these costs.
PE: 13.5x
Everus Construction Group, a smaller player in the construction industry, is drawing attention for its potential value. Despite a volatile share price recently and reliance on external borrowing, Everus reported sales of US$759.64 million in Q4 2024, up from US$635.72 million the previous year. Earnings guidance for 2025 suggests revenue could reach up to US$3.1 billion with net income between US$120-130 million, reflecting cautious optimism amidst anticipated earnings decline over three years by an average of 0.7% annually.
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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.
