Highlights
- U.S. tariff increase impacts global markets significantly.
- Small-cap stocks are facing challenges, but select undervalued options show potential.
- Insider purchasing is a key indicator of confidence in select small-cap stocks.
In April 2025, global markets faced a challenging environment due to the U.S. imposing higher-than-expected tariffs, resulting in significant declines across major indices. The Russell 2000 Index, representing small-cap stocks, experienced noticeable lags. These conditions highlight the importance of finding undervalued small-cap stocks with active insider buying, which may reveal opportunities resistant to broader market pressures.
GrainCorp (ASX:GNC)
GrainCorp, an agribusiness entity involved in various sectors including agribusiness and nutrition & energy, holds a market cap of A$2.56 billion. The company recently initiated a share repurchase program worth A$50 million, emphasizing insider confidence despite challenges such as reduced profit margins, which have dipped to 0.9%. With an expected annual earnings growth of 16.63%, GrainCorp remains a point of interest.
Plaza Retail REIT (TSX:PLZ.UN)
Focused on retail real estate, Plaza Retail REIT has shown financial resilience and recorded a net income rise for 2024 to CA$25.05 million. Insider activity is strong, with Susan Taves bolstering her stake, and the REIT's consistent monthly dividends further reiterate its commitment to providing shareholder returns amid market volatility.
Kraken Robotics (TSXV:PNG)
Kraken Robotics, specializing in sonar and sensor technology for robotic systems, has expanded its footprint with significant order intakes for its SeaPower batteries. The firm projects a 44% annual earnings growth, supported by strategic acquisitions, illustrating strong potential in the offshore energy domain.