The United States market has experienced a period of stability over the past week, maintaining its impressive 26% growth over the last year, with earnings projected to increase by 17% annually. In this environment, identifying stocks that are potentially undervalued can be crucial for investors seeking opportunities, especially when insider actions suggest confidence in their future prospects.

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

Name	PE	PS	Discount to Fair Value	Value Rating
Betterware de MéxicoP.I. de	10.2x	0.8x	41.97%	★★★★★★
Angel Oak Mortgage REIT	12.5x	5.6x	28.89%	★★★★★☆
Ferroglobe	NA	0.6x	21.27%	★★★★★☆
First Bancorp	8.9x	3.4x	31.51%	★★★★☆☆
PCB Bancorp	8.5x	2.9x	19.90%	★★★★☆☆
Bank of the James Financial Group	9.4x	2.0x	41.47%	★★★★☆☆
Similarweb	NA	1.3x	35.64%	★★★★☆☆
Bank of Marin Bancorp	NA	11.4x	36.28%	★★★☆☆☆
Patria Investments	25.0x	4.5x	7.51%	★★★☆☆☆
Angel Studios	NA	1.3x	-36.33%	★★★☆☆☆

Let's review some notable picks from our screened stocks.

Investar Holding (ISTR)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Investar Holding is a financial services company primarily engaged in banking operations, with a market capitalization of approximately $0.16 billion.

Operations: Investar Holding generates revenue primarily from its banking operations, with a recent quarterly revenue of $107.12 million. The company consistently achieves a gross profit margin of 100%, indicating no reported cost of goods sold (COGS). Operating expenses are dominated by general and administrative costs, which amounted to $56.06 million in the latest period. Net income margin has shown variability, reaching 25.25% in the most recent quarter ending March 31, 2026.

PE: 14.2x

Investar Holding, a company with a market presence in the U.S., shows potential for investors seeking undervalued opportunities. Despite past shareholder dilution, they forecast an impressive 28.58% annual earnings growth. Recent insider confidence is evident from share purchases between January and March 2026, totaling $1.53 million for 53,420 shares. The company reported strong Q1 financials with net interest income rising to $32.66 million from $18.35 million year-on-year and completed significant buybacks of over 2 million shares since 2015, indicating strategic capital management amidst industry challenges.

ICF International (ICFI)

Simply Wall St Value Rating: ★★★★★☆

Overview: ICF International provides professional services to a diverse range of clients, with operations contributing to a market capitalization of approximately $2.07 billion.

Operations: Revenue for the company primarily comes from professional services, totaling $1.82 billion in recent data. The gross profit margin shows a trend around 37.18% as of the latest period, indicating how revenue translates into gross profit after covering the cost of goods sold (COGS). Operating expenses are largely driven by general and administrative costs, which have been consistently significant over time.

PE: 14.5x

ICF International, a small cap stock, recently launched an AI-driven accelerator to streamline licensing and inspections, enhancing operational efficiency for clients. Despite a dip in Q1 2026 earnings to US$20.52 million from US$26.85 million the previous year, insider confidence is evident with share repurchases totaling US$14.95 million in early 2026. The company forecasts revenue growth up to $1.96 billion for 2026, indicating potential value amidst its high debt levels and strong public sector partnerships.

NexPoint Diversified Real Estate Trust (NXDT)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: NexPoint Diversified Real Estate Trust operates as a diversified real estate investment trust with a focus on diversified and hospitality sectors, and has a market capitalization of approximately $1.37 billion.

Operations: NXDT generates revenue primarily from its diversified and hospitality segments, contributing $50.88 million and $27.95 million respectively. The company has experienced fluctuations in its net income margin, which was -1.5077% as of June 2026, reflecting the impact of non-operating expenses on profitability. Gross profit margins have varied over time, with the most recent figure at 62.20%.

PE: -2.3x

NexPoint Diversified Real Estate Trust, a small U.S. company, faces challenges with declining earnings and revenue for Q1 2026 at US$22.88 million compared to US$29.07 million the previous year. Despite these hurdles, insider confidence is evident as they continue purchasing shares, reflecting potential belief in future prospects. The recent shareholder meeting saw a proposal for asset liquidation rejected, indicating strategic continuity amid financial restructuring efforts like the recent $9.72 million shelf registration filing related to an Employee Stock Ownership Plan (ESOP).

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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.