The market is up 1.9% over the last week, with the Information Technology sector up 2.8%. Over the past 12 months, the market is up 33%, and earnings are expected to grow by 15% per annum over the next few years. In this favorable environment, identifying small-cap stocks with strong fundamentals and insider action can present compelling investment opportunities.

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

Click here to see the full list of 53 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

Columbus McKinnon

Simply Wall St Value Rating: ★★★★★★

Overview: Columbus McKinnon is a company that designs, manufactures, and markets material handling products and systems, with a market cap of approximately $1.2 billion.

Operations: The company generates revenue primarily from its Machinery & Industrial Equipment segment, which amounted to $1.02 billion. The gross profit margin has shown an upward trend, reaching 37.08% in the latest period. Net income for the most recent period was $45.98 million, reflecting a net income margin of 4.52%. Operating expenses include significant allocations towards Sales & Marketing and General & Administrative expenses, amounting to $108.13 million and $105.42 million respectively in the latest period.

PE: 21.1x

Columbus McKinnon, a small-cap industrial company, has shown consistent performance with first-quarter sales of US$239.73 million and net income of US$8.63 million. Despite a slight dip in earnings per share to US$0.30, insider confidence is evident with recent executive transitions and stable dividend payouts at US$0.07 per share. The company forecasts low single-digit growth for fiscal 2025, suggesting potential for steady returns amidst its strategic leadership changes and prudent financial management.

• Delve into the full analysis valuation report here for a deeper understanding of Columbus McKinnon.

• Gain insights into Columbus McKinnon's past trends and performance with our Past report.

MaxLinear

Simply Wall St Value Rating: ★★★★☆☆

Overview: MaxLinear is a company that designs and supplies semiconductor products, with a market cap of approximately $2.30 billion.

Operations: MaxLinear generates revenue primarily through its semiconductor segment, with a recent quarterly gross profit margin of 53.99%. The company incurs significant costs in R&D and general & administrative expenses, contributing to a net income margin of -42.38% for the last reported period.

PE: -6.6x

MaxLinear, a small company in the semiconductor sector, has shown insider confidence with Kishore Seendripu purchasing 108,303 shares valued at US$1.4 million between July and September 2024. Despite recent volatility and a challenging financial performance—reporting a net loss of US$39.27 million for Q2 2024—the company's innovative Panther III storage accelerator offers significant cost savings by reducing CPU core requirements and enhancing data throughput. This could position MaxLinear well in the growing data storage market driven by AI advancements.

• Click to explore a detailed breakdown of our findings in MaxLinear's valuation report.

• Learn about MaxLinear's historical performance.

Armada Hoffler Properties

Simply Wall St Value Rating: ★★★★☆☆

Overview: Armada Hoffler Properties is a real estate company involved in office, retail, and multifamily residential properties, as well as general contracting and real estate services, with a market capitalization of approximately $1.23 billion.

Operations: Armada Hoffler Properties generates revenue primarily from General Contracting and Real Estate Services ($509.33 million), Retail Real Estate ($101.26 million), Office Real Estate ($86.98 million), and Multifamily Residential Real Estate ($59.66 million). The company has shown fluctuations in its gross profit margin, ranging from 23.04% to 48.25% over the observed periods, reflecting variability in cost management and operational efficiency.

PE: -320.2x

Armada Hoffler Properties, a small cap stock in the U.S., has shown promising growth with recent earnings of US$63.27 million for Q2 2024, up from US$59.95 million a year ago. Revenue for the first half of 2024 reached US$378.22 million compared to US$310.11 million last year, reflecting strong performance despite net income dropping to US$3.17 million from US$14.62 million in Q2 2023 due to higher expenses and interest payments not well covered by earnings. Insider confidence is evident as company insiders have been buying shares consistently throughout the past year, indicating their belief in future prospects despite current financial challenges and high-risk funding sources.

• Click here to discover the nuances of Armada Hoffler Properties with our detailed analytical valuation report.

• Gain insights into Armada Hoffler Properties' historical performance by reviewing our past performance report.

Key Takeaways

• Discover the full array of 53 Undervalued US Small Caps With Insider Buying right here.
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• 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 NasdaqGS:CMCO NasdaqGS:MXL and NYSE:AHH.

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