In the high-stakes world of Wall Street, where Bitcoin and tech giants dominate the headlines, a quieter game is unfolding. Insiders—executives, directors, and institutional investors—are placing their bets on a different set of players: seven overlooked stocks with strong fundamentals and untapped potential. These aren’t the flashy names you’ll find trending on social media. They’re niche companies in healthcare, banking, consumer goods, and media, delivering steady results while flying under the radar.
Why are insiders drawn to these stocks? It’s simple: they offer stability and growth in a market grappling with volatility, from geopolitical tensions to rising interest rates. While cryptocurrencies like Bitcoin saw $38.7 billion in ETF investments in 2024, their wild swings have pushed savvy investors toward tangible businesses with real revenue and insider confidence. Let’s dive into the seven stocks insiders are backing, backed by hard data from 2024, and explore why they’re stealing the spotlight from crypto.
The Appeal of Overlooked Stocks
Overlooked stocks are the market’s hidden gems—small to mid-cap companies often ignored by retail investors chasing hype. Their smaller size and niche focus make them less visible, but that’s exactly what attracts insiders. These companies can pivot quickly, capitalize on emerging trends, and deliver outsized returns when discovered. In 2024, with the S&P 500 up 28.71% but small-caps lagging at 14.82% per the Russell 2000, insiders see value in these underappreciated names.
The seven stocks below—spanning biotech, apparel, tech, banking, paper, industrials, and media—reflect this strategy. Each has shown solid performance, insider activity, or sector strength in 2024, supported by data from company reports, SEC filings, and market analyses. Here’s why they’re turning heads.
1. Amicus Therapeutics (FOLD): Biotech’s Rare Disease Champion
Sector: Healthcare (Biotech)
Market Cap: $2.8 billion (as of December 2024)
Amicus Therapeutics is a biotech focused on rare diseases, a niche that doesn’t grab headlines like COVID vaccines but delivers steady growth. Its flagship drug, Galafold, treats Fabry disease, while Pombiliti+Opfolda targets Pompe disease. Overlooked? Yes—its small-cap status and specialized focus keep it out of mainstream portfolios.
In 2024, Amicus reported $528.3 million in revenue, a 33% jump from 2023, driven by Galafold’s $458.1 million in sales (up 18%) and Pombiliti+Opfolda’s $70.3 million (up 507%). Despite a net loss of $56.1 million, the loss narrowed from $151.6 million in 2023, signaling progress toward profitability. Insiders are active: CEO Bradley Campbell sold 37,901 shares for $427,175 over six months, but 133 institutions added shares, per Nasdaq, showing confidence. Analysts like BofA Securities maintain a Buy rating with a $14 price target, citing market expansion potential.
Why Insiders Love It: Strong revenue growth and a clear path to profitability by mid-2025.
2. Kontoor Brands (KTB): The Apparel Staple Holding Strong
Sector: Consumer Cyclical (Apparel)
Market Cap: $4.0 billion (as of December 2024)
Kontoor Brands, the parent of Wrangler and Lee jeans, thrives in the unglamorous world of affordable apparel. While luxury brands hog the spotlight, Kontoor’s focus on durability keeps it relevant. Overlooked? Absolutely—its steady business model lacks the allure of high fashion.
In Q3 2024, Kontoor reported $654.5 million in revenue, up 3% year-over-year, with net income of $78.3 million. Its stock gained 38% in 2024, outperforming the S&P 500’s 28.71%. Insider activity is modest, with directors purchasing small lots (e.g., 1,000 shares by Director Kenneth Wilson in May 2024, per SEC filings). Institutional ownership rose to 92%, signaling hedge fund interest in its 2.5% dividend yield and stable cash flow.
Why Insiders Love It: Consistent performance and defensive qualities in a cyclical sector.
3. Digi International (DGII): IoT’s Quiet Powerhouse
Sector: Technology (IoT Solutions)
Market Cap: $920 million (as of December 2024)
Digi International powers the Internet of Things (IoT) for industries like manufacturing and utilities, a niche dwarfed by AI and cloud giants. Overlooked? Definitely—IoT lacks the buzz of consumer tech.
In fiscal 2024 (ended September 30), Digi reported $431 million in revenue, down slightly from $444 million in 2023 due to supply chain challenges, but its stock rose 15% year-to-date. Net income was $24.5 million, with a focus on 5G and smart city solutions driving growth. Insiders, including CEO Ronald Konezny, sold 25,000 shares in 2024 for $600,000, per InsiderTracking, but institutional holdings grew to 95%, reflecting long-term bets on IoT’s expansion, a trend noted in Simply Wall St.
Why Insiders Love It: Positioned for growth in 5G and industrial IoT.
4. Bank OZK (OZK): The Regional Bank Defying Volatility
Sector: Financials (Regional Banking)
Market Cap: $5.3 billion (as of December 2024)
Bank OZK, a regional lender focused on real estate, operates in the shadow of national banks. Overlooked? Yes—its southeastern U.S. focus keeps it off most radars.
In 2024, Bank OZK reported $1.4 billion in revenue, up 8% from 2023, with net income of $690 million. Its stock gained 22% year-to-date, resilient despite banking sector headwinds. Insiders are bullish: Director Nicholas Brown bought 5,000 shares for $210,000 in Q3 2024, per SEC filings. Bloomberg highlights undervalued financials, and OZK’s 3.2% dividend yield attracts institutions (87% ownership).
Why Insiders Love It: Stable lending and insider buying signal confidence.
5. Clearwater Paper (CLW): The Unsung Hero of Essentials
Sector: Consumer Staples (Paper Products)
Market Cap: $590 million (as of December 2024)
Clearwater Paper produces tissue and paperboard—hardly the stuff of investment dreams. Overlooked? Naturally—paper products don’t spark excitement.
In 2024, Clearwater reported $2.1 billion in revenue, up 4% from 2023, with net income of $85 million. Its stock soared 45% year-to-date, driven by steady demand for essentials. Insider activity is limited, but institutional ownership hit 90%, with BlackRock adding 1.2 million shares in Q2 2024, per Nasdaq. Consumer staples’ defensive nature, noted in Simply Wall St, makes CLW a safe bet.
Why Insiders Love It: Recession-resistant demand and institutional backing.
6. Gorman-Rupp (GRC): Pumping Up Infrastructure
Sector: Industrials (Pumps and Fluid Systems)
Market Cap: $1.0 billion (as of December 2024)
Gorman-Rupp makes pumps for water and industrial applications, a niche overshadowed by big industrials. Overlooked? You bet—it’s not a household name.
In 2024, Gorman-Rupp reported $660 million in revenue, up 5% from 2023, with net income of $35 million. Its stock gained 28% year-to-date, tied to infrastructure spending. Insiders, including CFO James Kerr, bought 2,500 shares for $90,000 in Q2 2024, per SEC filings. Bloomberg notes industrials as undervalued, and Gorman-Rupp’s 1.8% dividend yield draws institutions (82% ownership).
Why Insiders Love It: Infrastructure tailwinds and insider purchases.
7. Nexstar Media Group (NXST): Local TV’s Cash Cow
Sector: Communication Services (Broadcasting)
Market Cap: $5.6 billion (as of December 2024)
Nexstar Media Group, a leader in local TV stations, seems outdated in a streaming world. Overlooked? Definitely—its traditional model lacks Netflix’s glamour.
In 2024, Nexstar reported $4.9 billion in revenue, flat from 2023 due to a non-election year, but net income was $350 million. Its stock rose 18% year-to-date, with a 4.1% dividend yield attracting investors. Insiders, including CEO Perry Sook, sold 50,000 shares for $8 million in 2024, per InsiderTracking, but institutional ownership remains high at 94%. Political ad cycles, expected to boost 2025, underscore its resilience.
Why Insiders Love It: Strong cash flow and dividend appeal.
The Bigger Picture: Why These Stocks Matter
These stocks align with key 2024 market trends:
- Healthcare: Amicus thrives in biotech’s rare disease niche, supported by Simply Wall St.
- Consumer Staples/Cyclicals: Kontoor and Clearwater benefit from defensive demand, per Bloomberg.
- Tech: Digi’s IoT focus taps into industrial connectivity trends.
- Financials: Bank OZK rides undervalued banking opportunities.
- Industrials: Gorman-Rupp leverages infrastructure spending.
- Media: Nexstar’s ad revenue stability shines in volatile markets.
The Russell 2000’s 14.82% return in 2024, versus the S&P 500’s 28.71%, highlights small-caps’ undervaluation, making these stocks prime targets for insiders.
Risks to Watch
No stock is risk-free:
- FOLD: Biotech volatility; trial failures could hit hard.
- KTB: Consumer spending dips could hurt apparel sales.
- DGII: Supply chain issues may persist, slowing IoT growth.
- OZK: Real estate lending faces interest rate risks.
- CLW: Rising raw material costs could squeeze margins.
- GRC: Infrastructure budget cuts could stall growth.
- NXST: Streaming competition threatens local TV viewership.
Market-wide risks, like inflation or geopolitical tensions, also loom, per Bloomberg.
Crypto vs. Fundamentals
Bitcoin ETFs drew $38.7 billion in 2024, per Nasdaq, but their volatility—Bitcoin swung 50% in 2024—pushes insiders toward stocks with revenue, assets, and dividends. These seven deliver that stability, backed by insider moves and institutional trust.
Conclusion: The Insider Edge
Wall Street insiders aren’t chasing crypto’s wild ride—they’re investing in overlooked stocks like Amicus Therapeutics, Bank OZK, and Nexstar Media Group. With solid 2024 performance, insider activity, and sector tailwinds, these companies offer a compelling alternative to hyped-up assets. Investors should research thoroughly and consult advisors, but these stocks highlight where the smart money’s going.
