In the last week, the United States market has stayed flat, but it has experienced a significant 30% increase over the past year, with earnings expected to grow by 15% annually in the coming years. In this context, identifying stocks that are perceived as undervalued and exhibit insider buying can be an intriguing strategy for investors looking to capitalize on potential growth opportunities.

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

Click here to see the full list of 52 stocks from our Undervalued US Small Caps With Insider Buying screener.

Let's uncover some gems from our specialized screener.

MaxLinear

Simply Wall St Value Rating: ★★★★☆☆

Overview: MaxLinear is a company specializing in semiconductor solutions, with a market capitalization of approximately $2.89 billion.

Operations: MaxLinear's revenue primarily stems from its semiconductor segment, with recent figures showing $448.14 million. The company has experienced fluctuations in net income margin, which was -42.38% as of the latest period. Gross profit margin has also varied over time, currently standing at 53.99%. Operating expenses are significant and include substantial allocations to research and development as well as general and administrative costs.

PE: -6.0x

MaxLinear, a small company in the U.S., is navigating challenges with innovative strides. Despite a volatile share price and reliance on external funding, insider confidence is evident as their CEO recently acquired over 108,000 shares worth approximately US$1.4 million. They unveiled MaxAI™, enhancing network performance and user experience for service providers. However, recent earnings showed a significant drop in sales to US$92 million for Q2 2024 from the previous year’s US$184 million, indicating potential headwinds ahead.

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

• Assess MaxLinear's past performance with our detailed historical performance reports.

Bowlero

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Bowlero operates in the bowling entertainment industry with a market capitalization of approximately $2.36 billion.

Operations: The company generates revenue primarily from its Bowling Entertainment Business, with recent figures reaching $1.15 billion. Over time, the gross profit margin has fluctuated, peaking at 34.18% in early 2023 before decreasing to 27.21% by October 2024. Operating expenses have consistently been a significant cost component, with general and administrative expenses forming a substantial part of these costs.

PE: -18.6x

Bowlero, a player in the bowling entertainment sector, has shown insider confidence with recent share purchases. Despite reporting a net loss of US$83.58 million for the fiscal year ending June 2024, sales grew to US$1.15 billion from US$1.06 billion previously. The company anticipates revenue growth of up to 10% for fiscal 2025, aiming between US$1.22 billion and US$1.28 billion. Additionally, Bowlero repurchased over three million shares in Q2 2024 for $34.9 million, indicating strategic financial maneuvers amidst external borrowing risks and dividend payouts maintaining investor interest.

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

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

Delek US Holdings

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Delek US Holdings is an energy company primarily engaged in refining, logistics, and retail operations with a market cap of approximately $1.7 billion.

Operations: The company generates revenue primarily from its Refining segment, contributing $14.98 billion, followed by Logistics at $1.05 billion and Retail at $854.6 million. Over recent periods, the gross profit margin has shown fluctuations, reaching 13.48% in mid-2019 before decreasing to 5.41% by mid-2024 due to varying cost of goods sold (COGS). Operating expenses have also varied but generally remained significant relative to gross profit across periods analyzed.

PE: -12.0x

Delek US Holdings, a smaller company in the U.S. market, has shown insider confidence with recent share purchases, reflecting potential trust in its future prospects. Despite posting a net loss of US$37.2 million for Q2 2024 and facing challenges with earnings covering interest payments, the company is expanding its equity buyback plan by US$400 million to a total of US$1.07 billion. This move could signal management's belief in the company's long-term value amidst financial headwinds.

• Get an in-depth perspective on Delek US Holdings' performance by reading our valuation report here.

• Learn about Delek US Holdings' historical performance.

Turning Ideas Into Actions

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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:MXL NYSE:BOWL and NYSE:DK.

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