Over the past week, the United States market has risen by 2.7% and is up 9.6% over the last year, with earnings projected to grow by 14% annually. In this environment, identifying small-cap stocks that are perceived as undervalued and exhibit insider buying can provide unique opportunities for investors seeking to capitalize on potential growth within a dynamic market landscape.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: SolarEdge Technologies focuses on the development and sale of solar energy solutions and related products, with a market capitalization of approximately $6.62 billion.
Operations: The company's primary revenue stream is from its solar segment, generating $842.44 million. It has experienced fluctuations in gross profit margin, which reached a high of 36.64% and later dropped to -92.84%. Operating expenses have consistently increased over time, with significant allocations towards R&D and sales & marketing efforts.
PE: -0.4x
SolarEdge Technologies, amidst a volatile share price over the past three months, is navigating challenges with a significant net loss of US$1.81 billion for 2024 against previous profits. Despite being unprofitable and reliant on external borrowing, insider confidence is evident through recent purchases. The company recently launched the ONE Controller in Germany, aligning with regulatory shifts to enhance solar integration. While revenue forecasts suggest growth at 16.87% annually, profitability remains elusive for the next three years.
Overview: Magnera is a global company specializing in diversified industrial solutions with operations primarily across the Americas and other international markets, boasting a market capitalization of $4.75 billion.
Operations: Revenue is primarily generated from the Americas and Rest of World segments, totaling $2.37 billion as of the latest period. The company has seen a decline in its gross profit margin from 19.95% to 11.22% over recent periods, reflecting increased costs relative to revenue. Operating expenses have decreased slightly, with general and administrative expenses consistently being a significant part of this category.
PE: -2.5x
Magnera, a smaller company in the U.S., recently reported first-quarter sales of US$702 million, up from US$519 million the previous year. Despite this growth, they faced a net loss of US$60 million compared to US$8 million previously. Insider confidence is evident as Curtis Begle purchased 23,786 shares worth over US$501K between February and April 2025. While their funding relies on external borrowing, earnings are expected to grow significantly by over 100% annually.
Overview: NL Industries operates in the component products sector with a focus on manufacturing and distributing precision-engineered components, and has a market capitalization of approximately $0.49 billion.
Operations: Comp X generates revenue primarily from component products, with a notable fluctuation in net income margins over time. The company's cost structure is heavily influenced by cost of goods sold (COGS), which impacts its gross profit margin, observed to be 39.77% at its peak and 28.31% at its lowest during the period analyzed.
PE: 6.2x
NL Industries, a smaller company in the U.S., reported a turnaround with net income of US$67.23 million for 2024, contrasting with last year's loss. Despite sales declining to US$145.94 million from US$161.29 million, insider confidence is evident as they increased their holdings recently. The firm faces financial obligations due to a legal settlement requiring payment of US$56.1 million plus interest but expects to recognize an income boost from related settlements in Q1 2025.
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.
