The United States market has shown resilience, rising 1.8% over the last week and 10% over the past year, with anticipated earnings growth of 14% annually in the coming years. In this context, identifying small-cap stocks that are undervalued yet exhibit insider actions can offer intriguing opportunities for investors seeking to capitalize on potential growth within a robust market environment.
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 market cap of approximately $1.72 billion.
Operations: Advantage Solutions generates revenue primarily from Branded Services, Retailer Services, and Experiential Services. The company has experienced fluctuations in its gross profit margin, which stood at 14.22% as of March 2025. Over recent periods, operating expenses have consistently included costs related to general and administrative activities and depreciation & amortization.
PE: -1.4x
Advantage Solutions, a smaller U.S. company, is navigating a challenging financial landscape with recent sales of US$3.57 billion for 2024, down from US$3.90 billion the previous year, and a net loss widening to US$327 million. Despite these hurdles, insider confidence is evident with share repurchases totaling 12.58 million shares since November 2021 for US$53.03 million. Leadership changes include Daniel Gore as Chief Accounting Officer and Dean General as COO of Branded Services from March 24, 2025, potentially steering future growth amid volatile market conditions and forecasted earnings growth of over 125% annually.
Overview: Bloomin' Brands operates a portfolio of restaurant brands, including Outback Steakhouse and Carrabba's Italian Grill, with a market capitalization of approximately $2.44 billion.
Operations: The company's revenue is primarily generated from its operations in the United States, with additional contributions from international franchises. Over time, the gross profit margin has shown fluctuations, peaking at 17.88% in late 2021 before declining to 15.15% by late 2024. The cost of goods sold consistently represents a significant portion of expenses, impacting overall profitability trends across different periods.
PE: -13.8x
Bloomin' Brands, a restaurant operator, faces challenges with declining revenue and net losses for 2024, reporting US$3.95 billion in revenue compared to US$4.17 billion the previous year. Despite these hurdles, insider confidence is evident as Michael Spanos purchased 118,000 shares valued at approximately US$1.02 million. The company has completed significant share repurchases totaling 11% of outstanding shares for US$252 million by December 2024. Looking ahead, Bloomin' projects stable U.S comparable restaurant sales and earnings per share growth in 2025 between $1.08 to $1.28.
Overview: Cooper-Standard Holdings specializes in manufacturing and supplying systems and components for the automotive industry, with a focus on sealing systems and fluid handling systems, holding a market capitalization of approximately $0.38 billion.
Operations: Sealing Systems and Fluid Handling Systems are the primary revenue streams, generating approximately $1.42 billion and $1.24 billion respectively. The company's gross profit margin has shown notable fluctuation, peaking at 19.14% in late 2016 before declining to a low of 1.78% in early 2022, with recent figures showing recovery to around 11%.
PE: -3.8x
Cooper-Standard Holdings, a smaller player in the market, recently showed insider confidence with Lead Independent Director David Mastrocola purchasing 8,000 shares valued at US$118,551. Despite the company's current unprofitability and reliance on riskier external borrowing for funding, recent financials paint an optimistic picture. For Q4 2024, they reported US$660.75 million in sales and a net income of US$40.21 million compared to a loss last year. Looking ahead to 2025, projected sales range between US$2.7 billion and US$2.8 billion suggests potential growth opportunities amidst challenges.
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.
