10 Best Small Cap Low Volatility Stocks to Invest In

3. The Wendy’s Company (NASDAQ:WEN)

Market Cap: $1.93 billion

Beta: 0.31

Number of Hedge Fund Holders: 31

The Wendy’s Company (NASDAQ:WEN) is one of the best small cap low volatility stocks to invest in. On August 11, analyst Rahul Krotthapalli from J.P. Morgan maintained a Buy rating on The Wendy’s Company (NASDAQ:WEN) and set a $13.00 price target.

The analyst based the rating on The Wendy’s Company’s (NASDAQ:WEN) stabilization and the potential improvement in its store economics, factors supported by attractive free cash flow yields.

Krotthapalli sees The Wendy’s Company (NASDAQ:WEN) as a value-oriented opportunity despite a challenging outlook and recent performance, expecting free cash flow yields of 6.6% and 8.4% for fiscal year 2026 and 2027, respectively.

Another key consideration supporting the analyst’s optimistic outlook is The Wendy’s Company’s (NASDAQ:WEN) focus on reducing capital intensity and reallocating funds for faster deleveraging or shareholder returns.

The Wendy’s Company (NASDAQ:WEN) operates, develops, and franchises a system of quick-service restaurants. The company’s operations are divided into the following segments: Wendy’s U.S., Wendy’s International, and Global Real Estate and Development.