Yahoo Finance Exploring Three Undervalued Small Caps With Insider Action In The Market
Amid a notably broad advance in global markets, the Russell 2000 Index recently showcased a significant upswing, outperforming major indices with a 6.00% gain—the best since early November. This positive momentum in small-cap stocks provides an intriguing backdrop for investors exploring potential opportunities, particularly in undervalued sectors where insider actions might signal hidden growth prospects.
Top 10 Undervalued Small Caps With Insider Buying
Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
THG | NA | 0.4x | 42.48% | ★★★★★☆ |
Nexus Industrial REIT | 2.6x | 3.2x | 15.94% | ★★★★☆☆ |
CVS Group | 20.9x | 1.2x | 41.55% | ★★★★☆☆ |
Sagicor Financial | 1.1x | 0.4x | -85.89% | ★★★★☆☆ |
Titan Machinery | 4.2x | 0.1x | 19.72% | ★★★★☆☆ |
Chatham Lodging Trust | NA | 1.4x | 12.68% | ★★★★☆☆ |
Papa John's International | 19.6x | 0.7x | 36.53% | ★★★☆☆☆ |
Community West Bancshares | 18.7x | 2.9x | 42.25% | ★★★☆☆☆ |
Freehold Royalties | 15.8x | 6.8x | 47.40% | ★★★☆☆☆ |
Alta Equipment Group | NA | 0.2x | -236.16% | ★★★☆☆☆ |
Let's explore several standout options from the results in the screener.
Hertz Global Holdings
Simply Wall St Value Rating: ★★★☆☆☆
Overview: Hertz Global Holdings operates as a vehicle rental company primarily through its segments in the Americas and internationally, with a market capitalization of approximately $4.27 billion.
Operations: The company generated a revenue of $9.40 billion, with a notable gross profit margin of 12.56% in the latest quarter, reflecting its ability to manage production costs effectively. Over recent periods, gross profit margins have shown variability but remained significant enough to demonstrate competitive operational efficiency within its industry sector.
PE: 5.9x
Amid a challenging landscape, Hertz Global Holdings has demonstrated resilience with strategic leadership enhancements and a pivot towards operational excellence. Recently, the company welcomed seasoned executives to fortify its commercial strategies and fleet management—a move signaling robust internal confidence despite its recent exclusion from several Russell indexes. Notably, insider confidence is apparent as they recently purchased shares, underscoring a belief in the company's recovery trajectory. With profit margins under pressure from past decisions, these leadership changes are pivotal for future stability and growth in an evolving market.
Provident Financial Services
Simply Wall St Value Rating: ★★★★☆☆
Overview: Provident Financial Services is a financial institution offering traditional banking and other financial services, with a market capitalization of approximately $1.22 billion.
Operations: The entity generates a consistent gross profit margin of 100%, with recent revenues reaching $441.20 million. Its net income margin has shown variability, recently recorded at approximately 27.19%.
PE: 11.3x
Recently, Provident Financial Services showcased insider confidence with significant purchases, signaling strong belief in the company's prospects amid its expansion activities, including a notable $40.78 million shelf registration aimed at employee stock ownership. This move aligns with robust earnings forecasts predicting a 54.74% annual growth rate. Furthermore, the firm has successfully issued $225 million in fixed to floating rate notes, underscoring its strategic financial management and appeal to discerning investors looking for overlooked opportunities within the market.
AddLife
Simply Wall St Value Rating: ★★★★★☆
Overview: AddLife is a company that operates in the life sciences sector, focusing on laboratory and medical technology products and services, with a market cap of approximately SEK 9.99 billion.
Operations: Labtech and Medtech are the primary revenue contributors, generating SEK 3.68 billion and SEK 6.32 billion respectively. The company's gross profit margin has shown a slight increase over recent periods, reaching approximately 37.25% by mid-2024.
PE: 158.8x
Recently, AddLife has demonstrated a notable increase in sales and net income, with the latest quarterly figures showing a rise from SEK 2,365 million to SEK 2,554 million and net income improving significantly to SEK 72 million. Despite challenges such as higher risk funding sources and large one-off items impacting earnings quality, insider confidence is evident as they have recently purchased shares. This action suggests a belief in the firm's potential despite its financial hurdles and modest profit margins.
Get an in-depth perspective on AddLife's performance by reading our valuation report here.
Review our historical performance report to gain insights into AddLife's's past performance.
Next Steps
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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:HTZ NYSE:PFS and OM:ALIF B.
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