The United States market has experienced a notable upswing, rising 7.0% over the last week and 7.5% over the past year, with earnings projected to grow by 14% annually in the coming years. In this environment, identifying small-cap stocks that show potential through insider activity can be an effective strategy for investors seeking opportunities within a dynamic market landscape.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: Amplitude operates as a software and programming company, focusing on product analytics and digital optimization, with a market cap of approximately $1.15 billion.
Operations: The company generates revenue primarily from its software and programming segment, reporting $299.27 million in the latest period. The gross profit margin has shown an upward trend, reaching 74.30% recently. Operating expenses are significant, with sales and marketing being the largest component at $168.31 million, followed by R&D expenses of $97.57 million.
PE: -12.5x
Amplitude stands out in the small company sector with its forecasted 10% annual revenue growth, despite current unprofitability. Insider confidence is evident as Andrew Casey acquired 21,000 shares for US$239,765 in April 2025. The recent lease agreement for a prime San Francisco location suggests strategic expansion plans. While liabilities are entirely from external borrowing, the addition of Tien Tzuo to the board could steer innovative strategies forward. Revenue projections between US$324.8 million and US$330.8 million for 2025 indicate potential growth opportunities ahead.
Overview: Fluence Energy specializes in energy storage solutions, focusing on batteries and battery systems, with a market capitalization of approximately $3.65 billion.
Operations: Fluence Energy's revenue primarily comes from its batteries and battery systems, with a recent revenue figure of $2.52 billion. The company has experienced fluctuations in its gross profit margin, which reached 12.93% as of December 31, 2024. Operating expenses have been significant, including costs related to sales and marketing, R&D, and general administrative functions.
PE: -270.9x
Fluence Energy, a key player in energy storage, recently faced legal challenges over alleged misrepresentations affecting its stock value. Despite these issues, insider confidence is evident with Herman Bulls acquiring 30,000 shares for US$195,900 in April 2025. This activity suggests potential belief in the company's long-term prospects amidst volatility and reliance on external funding sources. Fluence's strategic moves include expanding U.S.-based production and launching Smartstack™, aiming to enhance grid stability and address rising energy demands.
Overview: Thermon Group Holdings is a company that specializes in providing highly engineered thermal solutions for process industries, with a market capitalization of approximately $1.18 billion.
Operations: The company generates revenue primarily from electronic components and parts, with a recent gross profit margin of 43.89%. The cost of goods sold (COGS) is a significant component of expenses, impacting the overall profitability. Operating expenses include general and administrative costs, which recently amounted to $128.62 million.
PE: 19.0x
Thermon Group Holdings, a smaller player in its industry, shows potential as an undervalued investment. Despite a slight dip in sales to US$134.35 million for Q3 2024 compared to the previous year, net income rose to US$18.54 million from US$15.84 million. The company has repurchased 218,874 shares for US$6.53 million by December 2024, reflecting insider confidence in its future prospects. Earnings are projected to grow annually by 15.62%, with revenue guidance set between US$495 and US$515 million for 2025 amidst executive transitions and external funding reliance.
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.
