The United States market has remained flat over the last week but has experienced a significant 32% increase over the past year, with earnings forecasted to grow by 15% annually. In such a dynamic environment, identifying stocks that are potentially undervalued and exhibit insider activity can be an effective strategy for investors seeking opportunities in smaller-cap companies.

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

Click here to see the full list of 50 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's explore several standout options from the results in the screener.

AerSale

Simply Wall St Value Rating: ★★★☆☆☆

Overview: AerSale is a company that specializes in providing integrated aviation services, including maintenance, repair, and overhaul (MRO) services, product sales, and asset management solutions for engines and aircraft, with a market capitalization of approximately $1.25 billion.

Operations: AerSale generates revenue primarily from Tech Ops - MRO Services and Asset Management Solutions, with significant contributions from engine and aircraft segments. The company's gross profit margin has shown variability, reaching as high as 37.68% in mid-2022 before declining to 27.55% by mid-2024.

PE: 803.9x

AerSale, a smaller U.S. company with potential for value appreciation, has shown insider confidence through George Bauer's purchase of 542,450 shares worth US$6.26 million, indicating faith in future growth. Despite recent lower profit margins at 0.1% compared to last year's 1.9%, the company's earnings are projected to grow significantly by 86% annually. Recent financials reveal improved performance with a net income of US$3.15 million for the first nine months of 2024, reversing a previous loss and highlighting its resilience amidst external borrowing challenges.

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

• Learn about AerSale's historical performance.

Myers Industries

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Myers Industries operates as a diversified manufacturing and distribution company with a focus on material handling products and services, holding a market cap of approximately $0.79 billion.

Operations: Myers Industries generates revenue primarily from its Material Handling segment, contributing $595.87 million, and the Distribution segment, contributing $227.73 million. The company's gross profit margin has experienced fluctuations over recent periods, reaching 32.06% as of September 2024.

PE: 28.0x

Myers Industries, a smaller company in the U.S. market, has seen recent shifts with the appointment of Aaron Schapper as CEO starting January 2025. Despite being dropped from several indices like S&P 600 and S&P Composite 1500 in November 2024, Myers reported third-quarter sales of US$205 million, slightly up from last year. However, a net loss of US$10.88 million was recorded for the same period. The company's future outlook is cautious with lowered earnings guidance for fiscal 2024 and ongoing insider confidence through share purchases suggests potential optimism about its long-term prospects despite current financial challenges.

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

• Review our historical performance report to gain insights into Myers Industries''s past performance.

Plymouth Industrial REIT

Simply Wall St Value Rating: ★★★★★☆

Overview: Plymouth Industrial REIT focuses on owning and operating industrial properties, with a market capitalization of approximately $1.06 billion.

Operations: The company's revenue primarily stems from its industrial properties, with a gross profit margin of 68.88%. Operating expenses and non-operating expenses significantly impact net income, which has shown improvement over recent periods, reaching $0.85 million by the end of September 2024.

PE: 1005.4x

Plymouth Industrial REIT, a smaller player in the industrial real estate sector, has recently adjusted its earnings guidance for 2024 due to delayed lease commencements and vacancies. Despite reporting a net loss of US$15.6 million for Q3 2024, they have expanded their borrowing capacity with a new US$600 million credit facility, enhancing financial flexibility. Insider confidence is evident with recent share purchases. The company declared a quarterly dividend of US$0.24 per share, reflecting consistent shareholder returns amidst growth challenges.

• Delve into the full analysis valuation report here for a deeper understanding of Plymouth Industrial REIT.

• Gain insights into Plymouth Industrial REIT's past trends and performance with our Past report.

Next Steps

• Embark on your investment journey to our 50 Undervalued US Small Caps With Insider Buying selection here.
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Looking For Alternative Opportunities?

• 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 NasdaqCM:ASLE NYSE:MYE and NYSE:PLYM.

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