Over the last 7 days, the United States market has remained flat, yet it has seen a significant rise of 22% over the past year with earnings forecasted to grow by 15% annually. In this context, identifying stocks that are potentially undervalued can be crucial for investors looking to capitalize on growth opportunities highlighted by insider buying trends.

Top 10 Undervalued Small Caps With Insider Buying In The United States

Click here to see the full list of 45 stocks from our Undervalued US Small Caps With Insider Buying screener.

Underneath we present a selection of stocks filtered out by our screen.

Gold Royalty

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Gold Royalty is a company that focuses on acquiring and managing royalty and mineral stream interests, with a market capitalization of approximately $0.38 billion.

Operations: Revenue primarily stems from investments in royalty and mineral stream interests, totaling $7.76 million. The gross profit margin has shown a consistent trend of approximately 1.0% in recent periods, with operating expenses and non-operating expenses impacting net income margins negatively across various quarters.

PE: -12.9x

Gold Royalty, a small cap company in the U.S., has been actively engaging with investors through recent presentations at key mining conferences, signaling their proactive industry presence. Despite having less than a year of cash runway and relying on higher-risk external borrowing, there is insider confidence with recent share purchases. Earnings are projected to grow significantly at 171% annually, suggesting potential for future growth amid current financial constraints.

• Click here to discover the nuances of Gold Royalty with our detailed analytical valuation report.

• Assess Gold Royalty's past performance with our detailed historical performance reports.

Chimera Investment

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Chimera Investment operates by investing, on a leveraged basis, in a diversified portfolio of mortgage assets and has a market cap of approximately $1.38 billion.

Operations: The company primarily generates revenue through its diversified portfolio of mortgage assets, with recent figures showing a gross profit margin of 93.19%. Operating expenses have been consistent around $53.75 million, impacting net income margins which recently stood at 61.20%.

PE: 4.6x

Chimera Investment, a smaller U.S. company, recently declared a fourth-quarter cash dividend of US$0.37 per share, payable on January 31, 2025. Despite this shareholder return, the company's financial position raises concerns; its debt isn't well-covered by operating cash flow and relies entirely on external borrowing for funding. Earnings are projected to decline by an average of 30.8% annually over the next three years, indicating potential challenges ahead despite insider confidence reflected in recent share purchases.

• Get an in-depth perspective on Chimera Investment's performance by reading our valuation report here.

• Examine Chimera Investment's past performance report to understand how it has performed in the past.

Delek US Holdings

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Delek US Holdings is a diversified energy company primarily engaged in refining and logistics operations, with a market capitalization of approximately $1.90 billion.

Operations: The company generates revenue primarily from its refining and logistics segments, with the refining segment contributing significantly more. Over recent periods, the net income margin has shown fluctuations, reaching a high of 5.26% in early 2019 before declining to negative figures in subsequent years. The cost of goods sold consistently represents a substantial portion of total revenue, affecting profitability trends.

PE: -3.1x

Delek US Holdings, a smaller player in the energy sector, has seen insider confidence with share purchases made by executives over the past year. Despite relying on external borrowing for funding, which carries higher risk compared to customer deposits, Delek's operating cash flow adequately covers its debt. This financial stability suggests potential resilience in navigating market fluctuations. As the company continues to focus on operational efficiency and strategic growth initiatives, it may present opportunities for investors seeking value in smaller companies within the United States.

• Click here and access our complete valuation analysis report to understand the dynamics of Delek US Holdings.

• Gain insights into Delek US Holdings' historical performance by reviewing our past performance report.

Taking Advantage

• Take a closer look at our Undervalued US Small Caps With Insider Buying list of 45 companies by clicking here.
• Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up.
• Join a community of smart investors by using Simply Wall St. It's free and delivers expert-level analysis on worldwide markets.

Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

Companies discussed in this article include NYSEAM:GROY NYSE:CIM and NYSE:DK.

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