The market has climbed by 2.6% over the past week, with every sector up and the Information Technology sector leading the way. The market is up 17% over the last 12 months, and earnings are forecast to grow by 15% annually. In this thriving environment, identifying undervalued small-cap stocks with insider buying can present compelling opportunities for investors looking to capitalize on growth potential.

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

Click here to see the full list of 61 stocks from our Undervalued US Small Caps With Insider Buying screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Ramaco Resources

Simply Wall St Value Rating: ★★★★★★

Overview: Ramaco Resources is a company engaged in the production and sale of metallurgical coal, with a market cap of $0.28 billion.

Operations: Ramaco Resources generates revenue primarily from the sale of coal, with recent quarterly revenue reaching $717.69 million. The company's cost of goods sold (COGS) for the same period was $546.53 million, resulting in a gross profit margin of 23.85%.

PE: 13.0x

Ramaco Resources, a small cap company, has seen its net profit margin drop from 12.8% to 7.6% over the past year while reporting Q2 sales of US$155.32 million, up from US$137.47 million last year but with reduced net income of US$5.54 million compared to US$7.56 million in the same period. Despite earnings forecasted to grow at 6.64% annually, insider confidence is evident with recent share purchases by management in July 2024 amidst strategic leadership changes and index reclassifications shifting towards growth indices on July 1st, 2024.

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

• Understand Ramaco Resources' track record by examining our Past report.

Vimeo

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Vimeo operates as a video hosting, sharing, and services platform primarily for businesses and professionals, with a market cap of approximately $1.01 billion.

Operations: The company generates revenue primarily from its Internet Software & Services segment, reaching $421.08 million recently. Its gross profit margin has shown an upward trend, peaking at 78.37% in the latest period. Operating expenses have been substantial, with significant allocations towards Sales & Marketing and R&D. Net income has transitioned from losses to a positive $32.39 million in the most recent quarter.

PE: 24.4x

Vimeo, a small-cap company, has shown promising financial performance in recent quarters. For Q2 2024, sales reached US$104.38 million with a net income of US$10.12 million, up from US$5.87 million the previous year. Their earnings per share also improved to US$0.06 from US$0.03 year-over-year. Recent insider confidence is evident with significant share purchases over the past six months, indicating strong belief in future growth potential despite being dropped from multiple Russell indices on July 1st, 2024.

• Dive into the specifics of Vimeo here with our thorough valuation report.

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

Chimera Investment

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Chimera Investment operates by investing, on a leveraged basis, in a diversified portfolio of mortgage assets and has a market cap of approximately $1.50 billion.

Operations: Chimera Investment primarily generates revenue from its diversified portfolio of mortgage assets. For the period ending June 30, 2024, it reported a gross profit margin of 89.91% and a net income margin of 45.94%. Operating expenses for this period were $53.49 million.

PE: 8.3x

Chimera Investment Corporation, a smaller U.S. stock, has shown promising financial performance recently. For Q2 2024, net income jumped to US$56.66 million from US$36.02 million the previous year, with basic earnings per share rising to US$0.42 from US$0.23. Over six months ending June 30, 2024, net income reached US$186.12 million compared to last year's US$93.39 million. Insider confidence is evident as they have been purchasing shares consistently throughout the past year.

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

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

Turning Ideas Into Actions

• Access the full spectrum of 61 Undervalued US Small Caps With Insider Buying by clicking on this link.

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Ready To Venture Into Other Investment Styles?

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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:METC NasdaqGS:VMEO and NYSE:CIM.

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