Over the last 7 days, the United States market has risen by 2.6%, contributing to a significant 26% climb over the past year, with earnings forecasted to grow by 17% annually. In this environment of robust growth, identifying small-cap stocks that are potentially undervalued and exhibit insider activity can be an intriguing opportunity for investors seeking value in a dynamic market landscape.

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

Name	PE	PS	Discount to Fair Value	Value Rating
First United	9.5x	2.7x	47.92%	★★★★★☆
Financial Institutions	8.9x	2.9x	32.01%	★★★★★☆
Ferroglobe	NA	0.5x	27.15%	★★★★★☆
First Bancorp	8.8x	3.3x	44.78%	★★★★☆☆
Metropolitan Bank Holding	12.6x	3.6x	41.39%	★★★☆☆☆
Bank of Marin Bancorp	NA	11.5x	34.72%	★★★☆☆☆
Franklin Financial Services	10.5x	2.8x	-7.82%	★★★☆☆☆
Bank of the James Financial Group	9.6x	2.1x	39.71%	★★★☆☆☆
Aldeyra Therapeutics	NA	NA	45.18%	★★★☆☆☆
Ultralife	NA	0.5x	18.87%	★★★☆☆☆

We're going to check out a few of the best picks from our screener tool.

Monro (MNRO)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Monro operates a network of auto repair centers with a focus on providing maintenance and repair services, and it has a market capitalization of approximately $1.46 billion.

Operations: The company generated $1.18 billion in revenue from its auto repair centers, with a gross profit margin of 34.77%. Operating expenses were significant, accounting for approximately $387.64 million, impacting the net income which was reported as a loss of -$13.87 million for the latest period.

PE: -36.3x

Monro, a smaller company in the U.S. market, is catching attention with its forecasted earnings growth of 64% annually. Despite relying solely on external borrowing for funding, which adds risk, insider confidence is evident through recent share purchases in early 2026. The company’s commitment to shareholder returns is highlighted by a quarterly dividend of US$0.28 per share declared in February 2026. This mix of growth potential and shareholder focus positions Monro as an intriguing prospect for investors seeking value opportunities.

Service Properties Trust (SVC)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Service Properties Trust operates as a real estate investment trust (REIT) with a focus on owning hotels and net lease service-oriented retail properties, with a market cap of approximately $1.20 billion.

Operations: The company generates revenue primarily from its Hotels segment, contributing approximately $1.34 billion, and its Net Lease segment with about $401.10 million. The gross profit margin has shown a fluctuating trend, reaching 45.05% in mid-2020 before declining to around 30.92% by mid-2025. Operating expenses have been consistently significant, including general and administrative expenses averaging around $44 million per quarter recently.

PE: -4.4x

Service Properties Trust, a smaller player in the U.S. market, has faced challenges with its profitability and funding structure, relying solely on external borrowing. Despite reporting a net loss of US$151 million for Q1 2026, insider confidence is evident as an executive acquired 100,000 shares valued at US$120,000 in early May. The company recently completed a US$500 million equity offering and announced minimal quarterly dividends of $0.01 per share.

NexPoint Residential Trust (NXRT)

Simply Wall St Value Rating: ★★★★☆☆

Overview: NexPoint Residential Trust operates as a real estate investment trust focusing on acquiring, owning, and managing middle-income multifamily properties, with a market capitalization of approximately $1.46 billion.

Operations: NexPoint Residential Trust primarily generates revenue from its residential real estate investment trust (REIT) operations, with a recent quarterly revenue reaching $251.88 million. The company's gross profit margin has shown a trend of increase over time, reaching 60.19% as of the latest period. Operating expenses and cost of goods sold are significant components impacting profitability, with operating expenses recorded at $123.14 million in the most recent quarter.

PE: -23.6x

NexPoint Residential Trust, a smaller U.S. company, recently reported Q1 2026 earnings with sales of US$61.06 million and a net loss of US$6.75 million, maintaining its dividend at US$0.53 per share for June 2026 payouts. Despite expected declines in earnings over the next three years and reliance on external borrowing, insider confidence is evident from recent share purchases by executives within the last year. This suggests potential value recognition in their real estate-focused operations amidst financial challenges.

Taking Advantage

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Curious About Other Options?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
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• 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.