Yahoo Finance Top 3 Undervalued Small Caps With Insider Buys To Watch In September 2024
As global markets rebound from recent sell-offs and the S&P 600 for small-cap stocks shows signs of recovery, investors are keenly watching economic indicators that could impact smaller companies. With core inflation slightly higher than expected and anticipation of interest rate cuts by the Federal Reserve, market conditions present a unique opportunity to explore undervalued small-cap stocks with insider buying activity. In this environment, a good stock is often characterized by strong fundamentals, potential for growth despite broader market volatility, and significant insider buying—indicating confidence from those closest to the company's operations.
Top 10 Undervalued Small Caps With Insider Buying
Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
Columbus McKinnon | 19.9x | 0.9x | 44.64% | ★★★★★★ |
Trican Well Service | 7.6x | 0.9x | 13.74% | ★★★★★☆ |
Citizens & Northern | 13.2x | 3.0x | 42.67% | ★★★★☆☆ |
Vital Energy | 4.2x | 0.6x | 6.58% | ★★★★☆☆ |
German American Bancorp | 14.2x | 4.7x | 45.41% | ★★★☆☆☆ |
Hemisphere Energy | 5.9x | 2.3x | -207.24% | ★★★☆☆☆ |
Franchise Brands | 43.1x | 2.2x | 38.94% | ★★★☆☆☆ |
Community West Bancshares | 18.7x | 2.9x | 42.25% | ★★★☆☆☆ |
Sabre | NA | 0.4x | -51.50% | ★★★☆☆☆ |
Industrial Logistics Properties Trust | NA | 0.8x | -265.63% | ★★★☆☆☆ |
Let's take a closer look at a couple of our picks from the screened companies.
MYR Group
Simply Wall St Value Rating: ★★★☆☆☆
Overview: MYR Group is a company that provides electrical construction services, focusing on commercial and industrial projects as well as transmission and distribution infrastructure, with a market cap of approximately $1.81 billion.
Operations: MYR Group generates revenue primarily from its Commercial & Industrial (C&I) and Transmission & Distribution (T&D) segments, with T&D contributing a larger share. The company’s gross profit margin has varied, most recently recorded at 10.04% for the period ending September 17, 2024. Operating expenses include significant allocations to general and administrative costs, which were $242.14 million in the same period.
PE: 33.8x
MYR Group, a small cap stock, is positioning itself for growth despite recent challenges. Earnings are forecasted to grow 52.68% annually, although profit margins have dipped from 2.6% to 1.4%. The company reported a net loss of US$15.28 million for Q2 2024 but maintains a strong balance sheet and credit facility to support acquisitions and organic growth. Insider confidence is evident with significant share repurchases totaling US$16.26 million between May and June 2024, reflecting optimism about future prospects.
Navigate through the intricacies of MYR Group with our comprehensive valuation report here.
Explore historical data to track MYR Group's performance over time in our Past section.
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 $1.68 billion.
Operations: The company generates revenue primarily from Travel Solutions ($2.70 billion) and Hospitality Solutions ($315.74 million). The gross profit margin has fluctuated, reaching 59.47% in the latest period. Operating expenses are significant, with R&D being a major component at $882.44 million in the most recent quarter, impacting net income margins which have been negative for several periods, most recently at -15.12%.
PE: -2.8x
Sabre Corporation, a small cap stock, has recently seen insider confidence with notable purchases over the past quarter. The company’s earnings are forecasted to grow 90.59% annually and it reported Q2 2024 sales of US$767.24 million, up from US$737.53 million last year, though it still posted a net loss of US$69.76 million. Recent client wins include Malaysia Airlines adopting Sabre's PRISM for corporate travel optimization and an expanded agreement with Priceline for enhanced travel payments solutions, highlighting strong industry partnerships and potential growth avenues despite current financial challenges.
Click here and access our complete valuation analysis report to understand the dynamics of Sabre.
Review our historical performance report to gain insights into Sabre's's past performance.
Victoria's Secret
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Victoria's Secret is a leading specialty retailer of women's lingerie, apparel, and beauty products with a market cap of approximately $2.37 billion.
Operations: Victoria's Secret generates revenue primarily from its retail-specialty segment, amounting to $6.13 billion. The company's gross profit margin has shown variability, reaching 44.67% recently. Operating expenses include significant allocations for general and administrative costs and sales & marketing expenses.
PE: 13.8x
Victoria's Secret recently reported Q2 2024 sales of US$1.42 billion, slightly down from last year, but net income rose to US$31.8 million from a loss. The company raised its full-year outlook and expects Q3 sales to grow modestly. Executive changes include Hillary Super as the new CEO starting September 9, 2024. Notably, the company streamlined leadership by eliminating two executive roles on September 2, indicating a strategic shift towards efficiency.
Click to explore a detailed breakdown of our findings in Victoria's Secret's valuation report.
Examine Victoria's Secret's past performance report to understand how it has performed in the past.
Make It Happen
Click here to access our complete index of 171 Undervalued Small Caps With Insider Buying.
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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.
Companies discussed in this article include NasdaqGS:MYRG NasdaqGS:SABR and NYSE:VSCO.
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