In this article, we will take a look at some of the best small-cap financial stocks that are currently offering attractive upside potential. On June 17, Ph.D. Professor of Economics at the University of Chile, Alejandro Micco Aguayo, shared his views on artificial intelligence-driven technological advancements in the International Banker publication. He highlighted that such developments are increasingly transforming the financial services industry as institutions are now investing heavily in software, automation, and digital infrastructure.
The integration of AI has not only changed the operating environment of financial institutions but is also reshaping how financial services are delivered and organized. These increased investments in technology reflect the accelerated efforts by financial institutions to modernize operations and strengthen competitiveness across financial markets, while also improving firms’ productivity and efficiency.
While financial institutions are adapting to changing market conditions, they also have to strike a balance between innovation and evolving regulatory and operational requirements. With these rapid changes, new roles have emerged in areas such as cybersecurity, oversight, and model governance.
The sector is also witnessing a growing emphasis on risk management and accountability, as firms seek to maintain efficiency while preserving transparency and trust. At the same time, strong governance and regulatory frameworks continue to support customer confidence and market stability.
With that background, let’s explore our 10 Best Small-Cap Financial Stocks to Buy Now.
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Our Methodology
To identify relevant stocks for this article, we screened U.S.-listed financial companies with market capitalizations between $300 million and $2 billion. Also, we only shortlisted stocks with at least 40% upside potential, according to consensus, as of the June 18 close. Finally, we selected 10 stocks with the highest upside and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Onity Group Inc. (NYSE:ONIT)
Recent analyst ratings are driving a favorable stance towards Onity Group Inc. (NYSE:ONIT), making it one of the 10 best small-cap financial stocks to buy now. On June 16, BTIG decreased the price target for the stock from $60 to $50, while reiterating a Buy rating.
According to the firm, the interest rate environment in 2026 has proven more difficult than previously anticipated, which underscores the need to maintain a well-balanced business model capable of generating steady returns throughout the economic cycle.
BTIG also highlighted that despite the currently elevated mortgage rates, it maintains a favorable view of mortgage originators based on their existing valuations. Nevertheless, the firm reduced its price targets due to tougher prospects, relating to interest rates and overall profitability.
Earlier, on June 11, Texas Capital also assigned a Buy rating to Onity Group Inc. after initiating coverage of the stock. The firm set a target price of $49, which yields more than 29% upside potential at the current level.
According to the firm, Onity is a premier mortgage servicing and origination business that has successfully driven positive structural transformation during the past few years. The firm anticipates valuation reaching 1.0x book value of $75, driven by profitable mortgage origination and servicing growth, while noting M&A activity as a potential price catalyst.
Onity Group Inc. provides owned mortgage servicing, government-insured and non-agency mortgage loans, as well as residential forward mortgage solutions. The company is also engaged in the origination of conventional and reverse mortgage loans through various channels, such as brokers and retail avenues. It is also involved in reinsurance services.
9. Perella Weinberg Partners (NASDAQ:PWP)
Perella Weinberg Partners (NASDAQ:PWP) is one of the 10 best small-cap financial stocks to buy now. On June 12, Goldman Sachs reduced its target price on Perella Weinberg Partners (NASDAQ:PWP) from $18 to $16 and reiterated its Sell rating on the stock. However, the broader consensus sentiment remains moderately bullish. This, along with workforce-related expense reduction plans, has led to some level of optimism.
As of June 18 closing, the stock had been assigned 2 Buy ratings and 1 Sell rating by analysts. Based on a median 1-year price target of $23.17, it offers an upside potential of almost 45%.
Back on May 28, Dani Burger from Bloomberg reported that Perella Weinberg Partners is initiating a workforce reduction plan, which will lead to a nearly 10% reduction in its existing workforce, which currently comprises approximately 700 individuals. The plan would also include laying off roughly a dozen partners.
Burger noted that these layoffs will be concentrated across certain industry verticals that have recently performed poorly relative to the broader market trajectory.
Perella Weinberg Partners is an independent advisory firm that serves healthcare, industrials, consumer, energy, finance, and tech industries. It delivers strategic advisory services on various types of mandates, including mergers & acquisitions, restructuring, private capital placements, and financing.
8. Slide Insurance Holdings Inc. (NASDAQ:SLDE)
Slide Insurance Holdings Inc. (NASDAQ:SLDE) is one of the 10 best small-cap financial stocks to buy now.
On June 4, Slide Insurance Holdings Inc. announced the successful placement of its 2026-2027 reinsurance program, setting a record-breaking aggregate limit of almost $5.5 billion. This represents a tremendous 65% increase over the $3.3 billion structure from the previous year, with a first-event coverage expansion to almost $4 billion.
The tech-enabled insurer increased its Purple Re catastrophe bond to $780 million and onboarded 12 additional markets in order to support this expansion and diversify its funding sources. Additionally, the company has enforced strict financial parameters by limiting first-event exposure to just 25% of anticipated pre-tax earnings. This translates to maximum retentions of $166.8 million for a first event and $150 million for a second event.
All participating partners carry an AM Best rating of ‘A-’ or higher, or are fully collateralized, with the firm’s Slide Re unit also taking a selective stake. According to CEO Bruce Lucas, favorable terms, expanded capacity, and the enduring benefits of Florida’s 2022 legislative reforms have profoundly reinforced the company’s financial stability as it navigates the impending peak hurricane season.
Slide Insurance Holdings Inc. is a tech-enabled insurance company that leverages big data and AI capabilities to offer personalized insurance solutions to customers. Keeping the unique needs and circumstances of individuals in mind, they deliver insurance plans for homeowners, commercial residential properties, and condominiums.
7. UP Fintech Holding Ltd. (NASDAQ:TIGR)
Backed by analyst ratings and the price target estimates, UP Fintech Holding Ltd. (NASDAQ:TIGR) makes it to the list of 10 best small-cap financial stocks to buy now.
On June 3, the price target on UP Fintech Holding Ltd. was reduced from $16.80 to $7.10 by Citi. The firm maintained a Buy rating on the stock, which still offers more than 50% upside potential based on the revised target.
Citi attributed this adjustment to weak first-quarter results reported by the company. Despite this, the firm believes that the stock’s recent decline appears to be an overreaction to China’s stricter regulations.
On June 1, Bank of America Securities reduced its price target on UP Fintech Holding Ltd. from $12.40 to $9.96, resulting in an adjusted upside potential of almost 112%. The firm upheld a Buy rating on the stock.
BofA slashed its 2026 GAAP EPS forecast by 45%, and also reduced its 2027–2028 projections by 9% to 13%. These changes account for a regulatory penalty of 411 million RMB, which is anticipated to be recognized during the first quarter. Additionally, the firm has incorporated stricter regulations within mainland China, which have affected profitability for that particular segment. Finally, BofA has taken the updated Federal Reserve interest rate expectations into account as well.
UP Fintech Holding Ltd. delivers online brokerage services focusing on Chinese investors. The company owns a brokerage platform known as Tiger Trade, and also offers other solutions, including Wealth & Asset Management. It also provides value-added services, including investor education, margin financing, ESOP management, IPO underwriting, and IR/PR platform services.
6. Hippo Holdings Inc. (NYSE:HIPO)
Hippo Holdings Inc. (NYSE:HIPO) is one of the 10 best small-cap financial stocks to buy now. The stock carries a moderately bullish consensus sentiment, based on favorable analyst ratings lately. On June 10, Texas Capital assigned a Buy rating to Hippo Holdings Inc. (NYSE:HIPO), after initiating coverage of the stock. The firm estimated a price target of $43, which yields a potential upside of around 72%.
According to the firm, Hippo operates within the home and casualty insurance segment, with solid distribution allies in the home insurance market. According to the firm, new homeowners are drawn to its unique data and smart-home loss-mitigation technology. Texas Capital argues that the market undervalues Hippo’s fronting carrier.
On June 11, Hippo Holdings Inc. shared that Laura Boettcher has been promoted as the new Chief Operating Officer of the company. Boettcher will manage operations for the entire enterprise, following her stint as the COO of Hippo Insurance since February 2024.
In her new role, she is expected to instill operational competence and customer orientation across the broader organization. As the COO of Hippo Insurance, she had a reputation for balancing business objectives with consumer needs. Previously, she also served as the Director of Reinsurance and Chief of Staff to the CEO.
Hippo Holdings Inc. provides a multi-carrier platform to deliver regulatory licenses, admitted and non-admitted paper, and reinsurance services. The company also offers program-specific and corporate catastrophe reinsurance solutions, renters’ insurance, and liability coverage solutions. Other services in its portfolio include homeowners’ insurance and niche commercial products.
5. Better Home & Finance Holding Co. (NASDAQ:BETR)
Better Home & Finance Holding Co. (NASDAQ:BETR) is one of the 10 best small-cap financial stocks to buy now.
On June 16, BTIG began coverage of Better Home & Finance Holding Co., with a target price of $36. The firm assigned a Buy rating to the stock, which currently offers more than 32% upside potential.
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BTIG noted that Better is strategically placed from an operational and technological perspective to expand its business activities through the newly formed strategic alliances. The firm believes that at the present valuation, the potential for upside from expanding growth surpasses compensation for the risks in additional lags in scaling up volume levels.
On June 4, Better Home & Finance Holding Co. and Coinbase Global Inc. (NASDAQ:COIN) announced the successful funding of the first Fannie Mae (FNMA) eligible Bitcoin-backed mortgage in the United States. The companies confirmed their plan to launch the product to eligible borrowers across the country by the summer of 2026, after making a preliminary announcement in March 2026.
The product has been designed to cater to the changing needs of today’s homebuyers in terms of finances and bridge the gap between digital wealth storage and conventional mortgage requirements. The program supports both Bitcoin and USDC and enables borrowers to collateralize digital assets and access loans without selling their holdings. Both companies have expressed interest in supporting more digital assets as the market grows.
Better Home & Finance Holding Co. runs as a homeownership company in the U.S. The company provides government-insured, conforming, and jumbo mortgage loans to institutional clients. It also offers title insurance and settlement services, home equity lines of credit, closed-end second-lien loans, and homeowners’ insurance services.
4. Gold.com Inc. (NYSE:GOLD)
With a strongly bullish consensus sentiment, Gold.com Inc. (NYSE:GOLD) makes it to our list of 10 best small-cap financial stocks to buy now. The stock has received Buy ratings from all 4 analysts who cover it, as of the June 18 close. It offers close to 58% upside potential, based on a 1-year median price target of $67.25.
On June 9, Canaccord Genuity began coverage of Gold.com Inc. with a price target of $70, along with a Buy rating for the stock. The firm asserts that Gold.com is a comprehensive precious metals-based platform that provides wholesale and retail clients with silver, copper, palladium, gold bullion, and numismatic coins.
The company thinks that its recent $150 million investment from a deal with Tether, the biggest non-sovereign gold holding, will be advantageous to both parties. It claims that Gold.com develops a complete service offering that is unmatched by rivals and would be challenging to duplicate.
Back on May 19, Gold.com Inc. filed a regulatory filing covering the periodic sale of up to 3.37 million common shares. The company is not marketing any shares through this specific registration. Hence, this will not lead to any sale proceeds for Gold.com.
Gold.com Inc. offers a highly integrated ecosystem of precious metals such as gold, silver, platinum, palladium, and others. The company also provides specialized services, including collateralized loans, metals storage, minting, refining, and rare coin auctions.
3. Goosehead Insurance Inc. (NASDAQ:GSHD)
Goosehead Insurance Inc. (NASDAQ:GSHD) is one of the 10 best small-cap financial stocks to buy now. As of the close of play on June 18, the stock carried moderately bullish consensus views. Based on a 1-year median target price of $64, it offers more than 82% upside potential at the current level.
On June 9, UBS reiterated its Buy rating for the stock. The firm reduced its target price from $85 to $67, which still results in more than 90% upside.
Back on May 26, Piper Sandler cut down its price target on Goosehead Insurance Inc. from $60 to $52, while maintaining an Overweight rating on the stock. The firm highlighted the recent share performance and the normal roll-forward of its timeline.
Overall, Piper Sandler raised target prices marginally for most insurance carriers and lowered them across the insurance brokerage space. These adjustments were based on the first quarter results, following which the firm shared its preference for insurance carriers over brokers. This view is based on carrier underwriting performance exceeding expectations.
GooseHead Insurance Inc. is an independent personal lines insurance agency that covers policies from over 200 insurance companies. This allows them to deliver optimal policy rates for their customers. They cover different types of insurance plans, ranging from home insurance, autos, property, life insurance, and many more.
2. AGI Inc. (NYSE:AGBK)
AGI Inc. (NYSE:AGBK) is one of the 10 best small-cap financial stocks to buy now. On June 15, Agibank, a subsidiary of AGI Inc. (NYSE:AGBK), announced a credit rating upgrade from Moody’s Local, moving from ‘AA-.br’ to ‘AA.br’. Following the bank’s New York Stock Exchange IPO, the agency attributed this adjustment to a stronger credit profile.
The upgrade was fueled by strong operational growth, increased loan portfolios, reinforced capital levels, and improved corporate governance. The rating adjustment occurs four months after the company’s Initial Public Offering (IPO). Agibank reported that its total credit portfolio has reached R$35.5 billion at the end of March 2026, which represents a 30% year-over-year increase.
Marcello Dubeux, Chief Financial Officer and Investor Relations Officer, noted that this milestone will reinforce market confidence, expand funding alternatives at more competitive costs, and solidify the bank’s reputation as a resilient debt issuer. He stated:
“This is the first credit rating upgrade Agi has received since our IPO, and we are confident that this achievement will reinforce the market’s confidence in our business model, expanding our funding alternatives with more competitive costs and strengthening Agibank’s position as a reliable and resilient debt issuer.”
AGI Inc. delivers technology-powered specialized financial services in Brazil. The company offers public or private sector payrolls, social security benefits, severance fund benefits, and complementary banking, credit, and insurance products. It performs its services via AI-driven automation, cloud-based software, and mobile applications.
1. Strive Inc. (NASDAQ:ASST)
With strongly bullish consensus views, Strive Inc. (NASDAQ:ASST) is the leading name in our list of 10 best small-cap financial stocks to buy now. As of June 18 closing, it received Buy ratings from all 5 analysts. The stock offers more than 94% upside at the current level, based on a median 1-year target price of $30.
On June 15, Strive Inc. added 73 BTC to its existing Bitcoin holdings. For an average price of $63,646 per Bitcoin, the acquisition was worth almost $4.7 million. With this purchase, Strive now owns 19,105 BTC, which are currently worth more than $1.2 billion.
Back in mid-May, TD Cowen increased its price target on Strive Inc. from $28 to $30. The firm kept a Buy rating on the stock, which now offers a revised upside potential of more than 94%.
The firm noted that switching to daily dividends for its perpetual preferred (“SATA”) stock should boost liquidity. Moreover, this move could also attract wider investor interest. TD Cowen also views this strategy as a way to improve capital efficiency for the business, which could enable the company to issue more preference shares down the line. Consequently, this could facilitate the acceleration of adding more Bitcoin on a per share basis.
Strive Inc. is an institutional asset management and structured finance company. It is engaged in bitcoin treasury solutions, institutional portfolio management, and ETF investments backed with in-house research.
