The United States market has remained flat over the last week but has seen a 21% increase over the past year, with earnings forecasted to grow by 14% annually. In this environment, identifying stocks that are potentially undervalued can be appealing to investors seeking opportunities for growth, and insider buying may serve as an indicator of confidence in a company's future prospects.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: West Bancorporation operates as a community banking organization, focusing on providing financial services primarily through its community banking segment, with a market capitalization of approximately $0.37 billion.
Operations: West Bancorporation generates revenue primarily through community banking, with significant operating expenses including general and administrative costs. The company's net income margin has shown variability, peaking at 47.18% in early 2022 before declining to 30.52% by the end of 2024.
PE: 15.3x
West Bancorporation, a smaller U.S. financial entity, recently showcased insider confidence with share purchases in the last quarter of 2024. Their fourth-quarter results revealed net income rising to US$7.1 million from US$4.53 million year-over-year, alongside an increase in net interest income to US$19.42 million from US$16.36 million a year prior. With earnings projected to grow at 16% annually, this company exhibits potential for future growth amidst its current market valuation challenges.
Overview: Innovex International operates in the oil well equipment and services industry, providing specialized products and solutions to enhance oilfield operations, with a market capitalization of $2.35 billion.
Operations: Innovex International generates revenue primarily from its Oil Well Equipment & Services segment, with recent figures at $543.31 million. The company has seen a notable trend in its net income margin, which reached 23.37% as of the latest reporting period.
PE: 9.0x
Innovex International, a smaller U.S. company, shows potential despite recent challenges. Revenue dipped by 1.3% over the past year, partly due to significant one-off items affecting earnings quality. The firm relies solely on external borrowing for funding, which poses higher risks compared to customer deposits. However, insider confidence is evident with notable share purchases in the last six months of 2024, suggesting belief in future growth prospects and possibly indicating an undervalued position in the market.
Overview: MultiPlan is a company that provides healthcare cost management solutions, with a focus on offering business services to its clients, and has a market cap of approximately $1.25 billion.
Operations: MultiPlan's revenue primarily comes from Business Services, with recent figures showing $942.61 million. The company experienced a gross profit margin of 74.23% as of the latest period ending in February 2025. Operating expenses and non-operating expenses are significant, contributing to a net income margin of -163.30%.
PE: -0.3x
MultiPlan, a company with significant experience in healthcare cost management, is making strides despite its small size. The recent strategic agreement with J2 Health aims to optimize network performance for healthcare payors, enhancing efficiency and reducing costs. Meanwhile, insider confidence is evident as their Chief Information Officer purchased 40,000 shares worth US$249,588 recently. However, the company's reliance on external borrowing poses risks. Their innovative CompleteVue platform seeks to improve pricing strategies and market insights for providers amidst a volatile share price environment.
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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.
