Over the last 7 days, the United States market has dropped 2.3%, yet it has risen by 17% over the past year with earnings expected to grow by 15% per annum over the next few years. In this dynamic environment, identifying undervalued small-cap stocks with insider buying can present compelling opportunities for portfolio enhancement.

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

Click here to see the full list of 63 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's review some notable picks from our screened stocks.

AtriCure

Simply Wall St Value Rating: ★★★★★☆

Overview: AtriCure is a company specializing in surgical and medical equipment with operations generating $429.95 million in revenue and a market cap of approximately $2.54 billion.

Operations: AtriCure generates revenue primarily from the sale of surgical and medical equipment, with recent quarterly revenue at $429.95 million. The company's gross profit margin was 74.84%.

PE: -26.1x

AtriCure, a small cap stock, has shown promising growth with second-quarter sales rising to US$116.27 million from last year's US$100.92 million. Despite reporting a net loss of US$8.01 million, the company projects annual revenue between US$456 million and US$461 million for 2024. Recent insider confidence is evident with significant share purchases in the past six months. Regulatory approval in China for their AtriClip device further enhances their market potential and global reach.

• Unlock comprehensive insights into our analysis of AtriCure stock in this valuation report.

• Evaluate AtriCure's historical performance by accessing our past performance report.

Vimeo

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Vimeo is a video software company that provides tools for hosting, editing, and sharing videos, with a market cap of approximately $1.09 billion.

Operations: Vimeo generates revenue primarily from its Internet Software & Services segment, amounting to $421.08 million. The company has seen a gross profit margin of 78.37% as of the latest period ending in August 2024. Operating expenses include significant allocations towards Sales & Marketing and R&D, with recent figures at $128.38 million and $102.08 million respectively.

PE: 24.6x

Vimeo's recent performance highlights its potential as an undervalued small-cap stock. For Q2 2024, Vimeo reported US$104.38 million in sales, a slight increase from US$101.84 million the previous year, and net income rose to US$10.12 million from US$5.87 million. Their AI-powered video translation solution launched in July aims to reduce costs and time for businesses reaching global markets, enhancing Vimeo’s appeal in the tech space. Notably, insider confidence is evident with significant share purchases over the past few months, indicating optimism about future growth prospects despite funding risks tied to external borrowing only.

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

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

Chimera Investment

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Chimera Investment is a real estate investment trust (REIT) that primarily invests in residential mortgage-backed securities and has a market cap of approximately $1.49 billion.

Operations: Chimera Investment generates revenue primarily through its core operations, with significant fluctuations in net income margins. For instance, the net income margin was 0.90% in Q3 2013 and reached as high as 1.52% by Q4 2022 before declining to -0.56% by Q2 2023. The company also experienced varying gross profit margins, with notable figures such as 0.97% in Q2 2021 and a peak of over 1% in recent quarters like Q4 2022 and Q1-Q3 of the following year.

PE: 8.4x

Chimera Investment, a small-cap stock, reported strong earnings for Q2 2024 with net income rising to US$56.66 million from US$36.02 million a year earlier. Basic EPS increased to US$0.42 from US$0.23 in the same period last year. Despite this performance, the company faces challenges with high-risk funding and forecasted earnings decline of 2.2% annually over the next three years. Insider confidence is evident as they have been purchasing shares recently, indicating potential future value.

• Take a closer look at Chimera Investment's potential here in our valuation report.

• Gain insights into Chimera Investment's past trends and performance with our Past report.

Make It Happen

• Gain an insight into the universe of 63 Undervalued US Small Caps With Insider Buying by clicking here.

• Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance.

• Invest smarter with the free Simply Wall St app providing detailed insights into every stock market around the globe.

Want To Explore Some Alternatives?

• 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 NasdaqGM:ATRC NasdaqGS:VMEO and NYSE:CIM.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com