The United States market has shown mixed performance recently, with the Utilities sector gaining 4.8% while the overall market remained flat last week. Over the past year, however, the market is up 19%, and earnings are forecast to grow by 15% annually. In this environment, identifying undervalued small-cap stocks with insider action can be a strategic move for investors looking to capitalize on potential growth opportunities.
Top 10 Undervalued Small Caps With Insider Buying In The United States
Overview: Papa John's International operates a global pizza delivery and carryout chain with a market cap of approximately $2.68 billion.
Operations: Papa John's International generates revenue primarily from its North America commissary segment, followed by its domestic company-owned restaurants and international operations. The company's cost of goods sold (COGS) significantly impacts its gross profit, which has shown variability over the periods with a recent gross profit margin of 30.77%.
PE: 19.5x
Papa John's International, a notable player in the restaurant industry, has experienced significant leadership changes with Todd Penegor stepping in as CEO and President on August 1, 2024. Despite a challenging financial landscape marked by high debt levels and reliance on external borrowing, the company forecasts earnings growth of 14.58% annually. The quarterly dividend remains steady at US$0.46 per share, reflecting confidence in future cash flows. Recent insider confidence is evident through consistent executive appointments and strategic leadership shifts aimed at bolstering operational efficiency and long-term growth prospects.
Overview: Delek US Holdings is a diversified energy company with operations in refining, logistics, and retail, and has a market cap of approximately $1.52 billion.
Operations: The company's primary revenue streams are derived from refining, retail, and logistics. Over recent periods, the net profit margin has shown significant variability, ranging from -0.08373% to 0.05326%. Operating expenses have also fluctuated significantly but generally hover around $700 million per period.
PE: -19.6x
Delek US Holdings, a small cap stock, has shown signs of being undervalued. Recently added to multiple Russell Growth Indexes on July 1, 2024, it indicates potential recognition in the market. Insider confidence is evident with recent share purchases by executives. Despite reporting a net loss of US$32.6 million for Q1 2024 compared to a net income of US$64.3 million the previous year, Delek increased its quarterly dividend to US$0.255 per share effective August 19, 2024.
Overview: Enviri operates in the environmental solutions sector, providing services through its Clean Earth and Harsco Environmental segments, with a market cap of $1.5 billion.
Operations: The company generates revenue primarily from its Clean Earth and Harsco Environmental segments, totaling $2.10 billion. The gross profit margin has varied, with the most recent figure being 21.29%.
PE: -18.4x
Enviri Corporation, a small-cap stock in the U.S., has seen recent insider confidence with significant share purchases over the past six months. Despite lowering its full-year earnings guidance and reporting a Q2 net loss of US$13.6 million, revenue remained steady at approximately US$610 million. The company's forecast for Q3 includes GAAP operating income between US$39 million and US$46 million. With projected revenue growth to around US$2.7 billion by 2027, Enviri shows potential for recovery and expansion amidst current challenges.
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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.
