Over the last 7 days, the United States market has dropped 5.6%, but it remains up 12% over the past year, with earnings expected to grow by 15% annually in the coming years. In this dynamic environment, identifying undervalued small-cap stocks with notable insider action can offer unique investment opportunities that align well with current market conditions.

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

Click here to see the full list of 62 stocks from our Undervalued US Small Caps With Insider Buying screener.

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

Papa John's International

Simply Wall St Value Rating: ★★★★☆☆

Overview: Papa John's International operates a global pizza delivery and carryout chain, with a market cap of approximately $2.47 billion.

Operations: Papa John's International generates revenue from North America commissary operations, domestic company-owned restaurants, international operations, and North America franchises. The company's gross profit margin has fluctuated between 0.15860% and 0.30772%, with the most recent value being 0.30772%. Key operating expenses include general & administrative costs and depreciation & amortization expenses.

PE: 18.4x

Papa John’s International, a small-cap stock, has recently seen significant insider confidence with key leadership changes. Todd Penegor, former CEO of Wendy's, was appointed as CEO and President on August 1, 2024. The company announced a quarterly dividend of US$0.46 per share payable on August 30. Despite dropping from the Russell 2000 Dynamic Index in July and reporting mixed first-quarter earnings with net income at US$14.64 million, the stock remains an intriguing prospect for investors seeking undervalued opportunities in the U.S market.

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

• Assess Papa John's International's past performance with our detailed historical performance reports.

B&G Foods

Simply Wall St Value Rating: ★★★★☆☆

Overview: B&G Foods is a company that manufactures, sells, and distributes a diverse portfolio of branded shelf-stable and frozen foods with a market cap of approximately $1.30 billion.

Operations: The company generates revenue primarily through the sale of its products, with recent figures showing $2.03 billion in revenue and a gross profit margin of 22.39%. Its cost structure includes significant expenses related to cost of goods sold (COGS), operating expenses, and non-operating expenses, which have impacted its net income, resulting in a net loss of $109.85 million for the latest period.

PE: -6.0x

B&G Foods is currently trading at a lower valuation, making it an interesting pick among smaller companies. Earnings are projected to grow nearly 100% annually, but interest payments remain poorly covered by earnings. Recent insider confidence was demonstrated through significant share purchases over the past month. The company has also announced a quarterly dividend of $0.19 per share and launched innovative products like the B&G® Pickleball Bag, blending culinary and sport culture seamlessly.

• Take a closer look at B&G Foods' potential here in our valuation report.

• Gain insights into B&G Foods' historical performance by reviewing our past performance report.

Greystone Housing Impact Investors

Simply Wall St Value Rating: ★★★★★☆

Overview: Greystone Housing Impact Investors focuses on market-rate joint venture investments, affordable multifamily MRB investments, and seniors and skilled nursing MRB investments, with a market cap of approximately $0.5 billion.

Operations: The primary revenue streams for Greystone Housing Impact Investors include Affordable Multifamily MRB Investments, Market-Rate Joint Venture Investments, and Seniors and Skilled Nursing MRB Investments. The company has seen fluctuations in its net income margin, peaking at 1.60142% as of March 31, 2023. Operating expenses have varied over time but remain a significant part of the cost structure.

PE: 7.7x

Greystone Housing Impact Investors, a small cap stock, has shown insider confidence with significant share purchases in recent months. Despite revenue forecasted to grow 46.24% annually, earnings are expected to decline by 10.8% per year over the next three years. Their recent debt financing arrangement extended their revolving loan maturity date to June 2025 and introduced new financed asset categories. The company declared a regular quarterly cash distribution of US$0.37 per unit on June 12, 2024, reflecting stable cash flow management amidst lower profit margins and high-risk external borrowing as their sole funding source.

• Get an in-depth perspective on Greystone Housing Impact Investors' performance by reading our valuation report here.

• Gain insights into Greystone Housing Impact Investors' past trends and performance with our Past report.

Next Steps

• Navigate through the entire inventory of 62 Undervalued US Small Caps With Insider Buying here.

• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.

• Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world.

Interested In Other Possibilities?

• 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 NasdaqGS:PZZA NYSE:BGS and NYSE:GHI.

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