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Undervalued Small Caps With Insider Buying Opportunities In May 2026

Simply Wall St·05/07/2026 11:09:52
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The United States market has shown robust performance recently, with a 3.2% increase over the last week and a remarkable 31% rise over the past year, while earnings are expected to grow by 16% annually. In this thriving environment, identifying small-cap stocks that may be undervalued and exhibit insider buying can present unique opportunities for investors seeking potential growth in their portfolios.

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 47.59% ★★★★★☆
Financial Institutions 9.0x 2.9x 31.46% ★★★★★☆
Ferroglobe NA 0.6x 45.75% ★★★★★☆
Ribbon Communications 15.0x 0.6x 32.80% ★★★★★☆
Metropolitan Bank Holding 13.0x 3.7x 39.45% ★★★★☆☆
PCB Bancorp 8.8x 3.0x 17.70% ★★★★☆☆
German American Bancorp 12.1x 4.4x 44.26% ★★★☆☆☆
Bank of Marin Bancorp NA 11.7x 33.40% ★★★☆☆☆
New Peoples Bankshares 9.7x 2.3x 23.07% ★★★☆☆☆
Aldeyra Therapeutics NA NA 45.67% ★★★☆☆☆

Click here to see the full list of 64 stocks from our Undervalued US Small Caps With Insider Buying screener.

Underneath we present a selection of stocks filtered out by our screen.

SNDL (SNDL)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: SNDL is a Canadian company engaged in the production and retail of cannabis products, with a market cap of approximately CA$1.45 billion.

Operations: SNDL's revenue has shown significant growth, reaching CA$951.58 million by September 2025, with a gross profit margin of 27.13%. The cost of goods sold (COGS) was CA$694.36 million in the same period, indicating a substantial portion of revenue is absorbed by production costs. Operating expenses include significant general and administrative costs, which were CA$202.03 million as of September 2025. Despite increasing revenues and gross profit margins over time, the company reported a net income loss of CA$92.28 million for the same quarter, reflecting ongoing financial challenges in achieving profitability.

PE: -46.4x

SNDL, a cannabis-focused company, recently reported first-quarter 2026 sales of CAD 195.91 million with a net loss reduced to CAD 9.91 million from the previous year. Despite the unprofitable status and reliance on external funding, they show insider confidence through share repurchases of over 4 million shares for CAD 8.85 million between November 2025 and March 2026. Leadership changes may impact strategy as they navigate these challenges in pursuit of growth within their industry segment.

SNDL Ownership Breakdown as at May 2026
SNDL Ownership Breakdown as at May 2026

Advantage Solutions (ADV)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Advantage Solutions is a provider of outsourced sales and marketing services to consumer goods companies and retailers, with a market cap of approximately $1.13 billion.

Operations: Advantage Solutions generates revenue primarily through its services, with a notable gross profit margin of 14.02% as of March 2026. The company incurs significant costs, including cost of goods sold (COGS) and operating expenses, which impact its profitability. Over recent periods, the net income has shown negative margins, reflecting challenges in managing non-operating expenses and overall financial performance.

PE: -2.3x

Advantage Solutions, a player in the U.S. market with fluctuating share prices over the past three months, faces challenges with profitability and relies on higher-risk external borrowing for funding. Despite these hurdles, insider confidence is evident as David Peacock purchased 8,000 shares in April 2026 for US$128,780. The company recently underwent a reverse stock split and anticipates flat to low single-digit revenue growth in 2026. Leadership changes aim to drive growth and innovation amidst industry shifts.

ADV Ownership Breakdown as at May 2026
ADV Ownership Breakdown as at May 2026

Tecnoglass (TGLS)

Simply Wall St Value Rating: ★★★☆☆☆

Overview: Tecnoglass is a company that specializes in the manufacturing and distribution of architectural glass and windows, with a market capitalization of approximately $2.25 billion.

Operations: The primary revenue stream comes from the Architectural Glass and Windows segment, generating $983.61 million. The gross profit margin has shown an upward trend, reaching 50.59% in Q1 2023 before slightly decreasing to 42.84% by the end of 2025. Operating expenses have consistently increased over time, with notable components including sales and marketing expenses and general & administrative costs.

PE: 12.4x

Tecnoglass, operating in the glass and window industry, is a small cap stock showing potential for value appreciation. Despite relying on external borrowing for funding, insider confidence is evident with recent share purchases. The company projects revenue growth between US$1.06 billion and US$1.13 billion in 2026, an 11% increase at midpoint. Recent buybacks of over 3 million shares suggest management's belief in its value proposition. With earnings set to grow annually by nearly 4%, Tecnoglass presents intriguing prospects amidst market dynamics.

TGLS Ownership Breakdown as at May 2026
TGLS Ownership Breakdown as at May 2026

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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.

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