Over the past year, the United States market has experienced a significant upswing with a 39% increase, though it has remained flat over the last week. In this context of anticipated annual earnings growth of 15%, identifying small-cap stocks that may be undervalued and have insider activity can present intriguing opportunities for investors seeking to align with these favorable market conditions.

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

Click here to see the full list of 49 stocks from our Undervalued US Small Caps With Insider Buying screener.

We'll examine a selection from our screener results.

HighPeak Energy

Simply Wall St Value Rating: ★★★★☆☆

Overview: HighPeak Energy is engaged in the development, exploration, and production of oil and natural gas with a market capitalization of approximately $1.86 billion.

Operations: HighPeak Energy's revenue is primarily derived from oil and natural gas development, exploration, and production, with recent figures showing $1.21 billion in revenue. The cost of goods sold (COGS) stands at approximately $204.47 million, contributing to a gross profit margin of 83.10%. Operating expenses include significant components such as general and administrative costs amounting to $48.27 million and depreciation & amortization expenses reaching $508.83 million for the latest period reported.

PE: 12.0x

HighPeak Energy, a small-cap player in the energy sector, recently reported revenue of US$275.27 million for Q2 2024, up from US$240.76 million the previous year, though net income dipped slightly to US$29.72 million. Insider confidence is evident with share purchases between April and June 2024 totaling 413,449 shares for US$5.79 million. Despite lower profit margins at 12.6%, compared to last year's 25.2%, earnings are projected to grow by 17% annually, suggesting potential for future value appreciation amidst its higher-risk funding structure reliant on external borrowing.

• Click here and access our complete valuation analysis report to understand the dynamics of HighPeak Energy.

• Understand HighPeak Energy's track record by examining our Past report.

Sabre

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Sabre is a technology solutions provider specializing in travel and hospitality industries, with a market cap of approximately $2.69 billion.

Operations: Sabre's revenue primarily comes from Travel Solutions, with a smaller portion from Hospitality Solutions. The company's gross profit margin has shown notable fluctuations, reaching as high as 81.41% in mid-2020 before stabilizing around 59.47% by late 2024. Operating expenses are significant, often surpassing $1 billion annually, influenced by substantial R&D investments and general administrative costs.

PE: -3.4x

Sabre Corporation, a small company in the U.S., is gaining attention due to its recent strategic agreements and innovative tech solutions. A new distribution deal with Premier Inn expands Sabre's lodging content, enhancing travel agency offerings. Despite past shareholder dilution and reliance on external borrowing, insider confidence has increased with recent share purchases. Earnings are forecasted to grow significantly, supported by partnerships like those with Riyadh Air for advanced AI-driven retailing technologies.

• Navigate through the intricacies of Sabre with our comprehensive valuation report here.

• Gain insights into Sabre's historical performance by reviewing our past performance report.

Third Coast Bancshares

Simply Wall St Value Rating: ★★★★★☆

Overview: Third Coast Bancshares operates as a community banking institution with a focus on providing financial services, and it has a market capitalization of approximately $0.29 billion.

Operations: The company generates revenue primarily from community banking, with a recent figure of $158.91 million. Operating expenses have consistently increased over time, with general and administrative expenses being the largest component, reaching $88.49 million in the latest period. The net income margin has shown variability, peaking at 24.46% in the most recent quarter while gross profit margin remains steady at 100%.

PE: 10.9x

Third Coast Bancshares, a small company in the U.S., shows potential for growth with earnings projected to increase by 10.67% annually. Recent financial results highlight strong performance; net income for Q3 2024 rose to US$12.78 million from US$5.58 million the previous year, while basic earnings per share increased to US$0.85 from US$0.32. Insider confidence is evident with recent share purchases, suggesting belief in future prospects despite challenges like shelf registration filings of over $90 million worth of securities.

• Get an in-depth perspective on Third Coast Bancshares' performance by reading our valuation report here.

• Review our historical performance report to gain insights into Third Coast Bancshares''s past performance.

Seize The Opportunity

• Get an in-depth perspective on all 49 Undervalued US Small Caps With Insider Buying by using our screener here.
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Seeking Other Investments?

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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 NasdaqGM:HPK NasdaqGS:SABR and NasdaqGS:TCBX.

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