In the last week, the United States market has stayed flat, yet it has seen a 20% increase over the past year with earnings forecasted to grow by 18% annually. In this dynamic environment, identifying small-cap stocks that are potentially undervalued and exhibit insider activity can be a promising strategy for investors looking to explore opportunities in July 2026.

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	10.1x	0.8x	49.52%	★★★★★★
Appian	2047.2x	2.4x	33.39%	★★★★★☆
Industrial Logistics Properties Trust	NA	1.3x	40.27%	★★★★★☆
Kingstone Companies	9.4x	1.3x	35.25%	★★★★☆☆
Shore Bancshares	12.0x	3.4x	3.43%	★★★★☆☆
Similarweb	NA	1.9x	24.59%	★★★★☆☆
Modiv Industrial	NA	3.8x	49.55%	★★★★☆☆
German American Bancorp	13.2x	4.8x	39.07%	★★★☆☆☆
Union Bankshares	9.9x	2.1x	18.62%	★★★☆☆☆
Angel Studios	NA	1.8x	18.41%	★★★☆☆☆

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

Advantage Solutions (ADV)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Advantage Solutions is a company specializing in providing marketing and sales solutions through its branded, retailer, and experiential services segments, with a market cap of $1.26 billion.

Operations: The company generates revenue primarily from Branded Services, Retailer Services, and Experiential Services. Its cost of goods sold (COGS) significantly impacts its gross profit margin, which was 14.02% as of March 31, 2026. Operating expenses include general and administrative costs and depreciation & amortization expenses.

PE: -2.2x

Advantage Solutions, a smaller U.S. company, recently saw insider confidence with an 8% share purchase by David Peacock for US$128,780. Despite reporting a net loss of US$71.83 million in Q1 2026, sales rose to US$869.6 million from the previous year. The company completed a significant buyback program worth US$56.28 million and reaffirmed its earnings guidance for flat to low single-digit growth in 2026, signaling potential value despite current unprofitability and volatile share prices.

Krispy Kreme (DNUT)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Krispy Kreme is a global doughnut and coffeehouse chain known for its iconic glazed doughnuts, with operations in the U.S., international markets, and market development segments, and a market capitalization of approximately $2.34 billion.

Operations: The company generates revenue primarily from its U.S., International, and Market Development segments, with the U.S. segment contributing the largest share. Over recent periods, its gross profit margin has shown variability, reaching as high as 31.85% in late 2018 and declining to around 23.35% by mid-2025.

PE: -1.1x

Krispy Kreme, a smaller U.S. company, is navigating growth challenges while exploring new markets and product innovations. Recent agreements with APL Sweets OÜ to expand into the Baltic States and Finland signal strategic international expansion plans. Despite being dropped from several Russell Growth benchmarks in late June 2026, insider confidence remains noteworthy as insiders have been purchasing shares throughout the year. The company's collaboration with Girl Scouts introduces fresh products like the Girl Scout Cookie Inspired Dozen, potentially boosting brand appeal. However, Krispy Kreme faces profitability hurdles due to reliance on external borrowing for funding without customer deposits as a buffer.

Shore Bancshares (SHBI)

Simply Wall St Value Rating: ★★★★☆☆

Overview: Shore Bancshares is a financial holding company primarily engaged in community banking, with a focus on providing various banking services, and has a market cap of approximately $0.19 billion.

Operations: Shore Bancshares generates revenue primarily through community banking, with recent figures showing $224.40 million in revenue. Operating expenses are a significant component of costs, with general and administrative expenses being the largest at $113.21 million for the latest period. The net income margin has shown variability over time, reaching 27.99% in the most recent quarter analyzed.

PE: 12.0x

Shore Bancshares, a small financial entity in the U.S., showcases potential for growth despite recent index exclusions. The company's earnings are on an upward trajectory, with net income rising to US$17.09 million in Q1 2026 from US$13.76 million the previous year. Insider confidence is evident through purchases made between April and June 2026, reflecting optimism about future prospects. Additionally, a US$30 million share repurchase program underscores management's belief in its intrinsic value amidst sector challenges.

Next Steps

• Dive into all 62 of the Undervalued US Small Caps With Insider Buying we have identified here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes.
• Streamline your investment strategy with Simply Wall St's app for free and benefit from extensive research on stocks across all corners of the world.

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.