The United States market has shown a positive trajectory, climbing 1.6% in the last week and 13% over the past year, with earnings anticipated to grow by 18% annually in the coming years. In this context, identifying small-cap stocks that exhibit strong fundamentals and insider activity can be a strategic approach for investors seeking opportunities amid these favorable market conditions.
Top 10 Undervalued Small Caps With Insider Buying In The United States
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Regional Management | 6.5x | 0.5x | 33.61% | ★★★★★☆ |
| Surgery Partners | NA | 0.5x | 27.74% | ★★★★★☆ |
| Enovis | NA | 0.5x | 42.36% | ★★★★★☆ |
| Bank of the James Financial Group | 10.8x | 2.4x | 27.05% | ★★★★☆☆ |
| Union Bankshares | 9.4x | 2.0x | 47.40% | ★★★★☆☆ |
| Shore Bancshares | 11.5x | 3.3x | 37.46% | ★★★★☆☆ |
| German American Bancorp | 13.0x | 4.9x | 28.22% | ★★★☆☆☆ |
| Bank of Marin Bancorp | NA | 7.3x | 32.23% | ★★★☆☆☆ |
| Franklin Financial Services | 11.5x | 3.1x | -39.80% | ★★★☆☆☆ |
| Orion Group Holdings | 104.1x | 0.4x | 44.49% | ★★★☆☆☆ |
Below we spotlight a couple of our favorites from our exclusive screener.
Five Star Bancorp (FSBC)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Five Star Bancorp is a financial institution primarily engaged in providing banking services, with operations generating $167.61 million in revenue.
Operations: Five Star Bancorp generates revenue primarily from its banking operations, with a recent figure of $167.61 million. The company has seen fluctuations in its net income margin, which was 42.96% as of the latest data point. Operating expenses have been increasing over time, with general and administrative expenses being a significant component at $56.07 million recently.
PE: 14.8x
Five Star Bancorp, a growing financial institution, showcases insider confidence with recent share purchases. Their earnings for Q2 2026 saw net interest income rise to US$46.08 million from US$36.52 million the previous year, indicating potential value in their stock. Lydia Ramirez's appointment as Chief External Affairs Officer underscores their commitment to community engagement and expansion across California. With projected annual earnings growth of 14%, Five Star is positioned for continued development within the banking sector.
- Click here to discover the nuances of Five Star Bancorp with our detailed analytical valuation report.
Explore historical data to track Five Star Bancorp's performance over time in our Past section.
Babcock & Wilcox Enterprises (BW)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Babcock & Wilcox Enterprises is a company specializing in energy and environmental technologies and services, with a market capitalization of $0.32 billion.
Operations: The company generates revenue primarily from its operations, with a recent figure of $834.35 million. The cost of goods sold (COGS) stands at $669.63 million, impacting the gross profit margin which is currently 19.74%. Operating expenses include significant allocations for general and administrative purposes, totaling $143.29 million, while non-operating expenses are recorded at $109.85 million.
PE: -9.3x
Babcock & Wilcox Enterprises, a smaller U.S. firm, is attracting attention with its diverse projects and financial moves. Recently, they announced a US$130 million air quality project and partnered with Siemens Energy for 1 GW of steam turbines. Despite volatile share prices and past shareholder dilution, their earnings showed improvement with US$319.72 million in Q2 sales compared to last year's US$138.86 million. Insider confidence is evident from recent share repurchase plans worth up to US$50 million, signaling potential growth opportunities in the power generation sector amidst rising energy demands.
- Delve into the full analysis valuation report here for a deeper understanding of Babcock & Wilcox Enterprises.
Learn about Babcock & Wilcox Enterprises' historical performance.
OppFi (OPFI)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: OppFi is a financial technology company that provides accessible credit products to consumers, with a market cap of approximately $0.09 billion.
Operations: The company generates revenue primarily from its financial services for consumers, with a recent figure of $327.48 million. Over the periods observed, it has consistently reported a gross profit margin of 100%. Operating expenses include significant allocations to general and administrative costs and sales and marketing expenses, which have varied over time. Net income margins have fluctuated significantly, showing both positive and negative values in different quarters.
PE: 5.1x
OppFi, a smaller company in the U.S. financial sector, is catching attention due to its strong earnings turnaround and insider confidence. In Q2 2026, they reported US$145 million in revenue and a net income of US$14.8 million, contrasting with last year's loss. Insiders have shown confidence by purchasing shares recently, indicating potential belief in future growth. Despite relying solely on external borrowing for funding—a riskier strategy—their projected annual earnings growth of 35% suggests promising prospects ahead.
- Dive into the specifics of OppFi here with our thorough valuation report.
Gain insights into OppFi's historical performance by reviewing our past performance report.
Key Takeaways
- Investigate our full lineup of 66 Undervalued US Small Caps With Insider Buying right here.
- Are you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.
- Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com