In this article, we will look at the 10 Best Small-Cap Value Stocks to Buy.
The Russell 2000 Index has risen more than 21% over the past 6 months. On November 26, Chris Retzler, portfolio manager of the Needham Small Cap Growth Fund, appeared on a CNBC television interview to discuss the performance of the sector. Retzler noted that the small-cap stock rally has a strong setup for continued momentum moving forward. He elaborated that the market has started to broaden, and this expansion sets the stage for small-cap outperformance. Additionally, the Federal Reserve’s cuts are becoming more certain, which will help direct funds to undervalued areas of the market.
Retzler acknowledged small caps’ higher risk profile compared to large caps. This was driven by elevated interest rates over the past four to five years that funneled money into mega caps, thereby enabling them to outperform the market. Now, with the Fed easing interest rates, Retzler expects liquidity to flow into the small-cap stocks as large-cap stocks have already been in the spotlight for a long time, and investors are now looking outside. He added that this sentiment was visible in the recent slowdown in the technology sector, which suggests that the large-cap stocks are facing capacity challenges. After speaking with over 40 companies, Retzler concluded this is the most favorable entry point for small caps since 2019.
With that, let’s take a look at the 10 Best Small Cap Value Stocks to Buy.
Our Methodology
To curate the list of 10 Best Small Cap Value Stocks to Buy, we used the Finviz stock screener, CNN, and Insider Monkey’s Q3 2025 hedge fund database. Using the screener, we aggregated a list of small-cap value stocks (market capitalization between $300 million and $2 billion). After sorting the list by market capitalization, we looked for stocks trading under the FWD P/E of 20, and for which analysts expect at least 10% upside. Next, we cross-checked the upside potential from CNN and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s database. Please note that the data was recorded on December 11, 2025.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Best Small-Cap Value Stocks to Buy
10. Genesis Energy, L.P. (NYSE:GEL)
Market Capitalization: 1.98 billion
Forward P/E: 13.02
Analyst Upside Potential: 17.57%
Number of Hedge Fund Holders: 5
Genesis Energy, L.P. (NYSE:GEL) is one of the Best Small Cap Value Stocks to Buy. Genesis Energy, L.P. (NYSE:GEL) is up more than 52% year-to-date. On December 1, Elvira Scotto from RBC Capital reiterated a Buy rating on the stock with a $20 price target.
The analyst noted that the bullish sentiment stems from the company’s fiscal Q3 2025 results and impressive year-to-date performance. Scotto highlighted that despite the company non profitability over the past 12-months, it remains well-positioned to benefit from an increase in offshore volumes and increased cash flow. The analyst also highlighted that Genesis Energy, L.P. (NYSE:GEL) has an impressive available pipeline that has the potential to grow without significant capital expenditure.
During the fiscal Q3 2025, Genesis Energy, L.P. (NYSE:GEL) reported net income of $9.2 million, marking a significant increase from a net loss of $17.2 million during the same quarter last year. Management noted that the quarterly performance was largely in line with their expectations. They attributed financial performance to its offshore pipeline transportation segment, which benefited from no weather-related disruptions and other favorable seasonal factors.
Genesis Energy, L.P. (NYSE:GEL) operates as a diversified midstream energy master limited partnership, focusing on transportation, storage, and processing services for crude oil, natural gas, and related products primarily in the Gulf Coast region.
9. SmartStop Self Storage REIT Inc. (NYSE:SMA)
Market Capitalization: $1.93 billion
Forward P/E: 15.00
Analyst Upside Potential: 19.19%
Number of Hedge Fund Holders: 17
SmartStop Self Storage REIT Inc. (NYSE:SMA) is one of the Best Small Cap Value Stocks to Buy. On December 10, Simon Yarmak from Stifel Nicolaus reiterated a Buy rating on SmartStop Self Storage REIT Inc. (NYSE:SMA) with a price target of $40. Earlier on November 25, Eric Luebchow from Wells Fargo also reiterated a Buy rating with a $41 price target.
Simon Yarmak of Stifel noted that the company has performed well since its IPO, despite a 9.3% year-to-date decline in the broader storage solutions sector. The analyst noted that investor sentiment is shifting towards the storage sector mainly due to sluggish home sale velocity throughout 2025. Moreover, Yarmak highlighted that while the supply has remained elevated in the property sector, he expects the conditions to improve in the next 12-months.
That said, SmartStop Self Storage REIT Inc. (NYSE:SMA) recently grew its presence in the Orlando MSA. On November 26, the company announced the acquisition of a self-storage facility located in Winter Garden, Florida. Management noted that the facility consists of approximately 72,100 net rentable square feet across seven single-story buildings. This can offer around 515 storage units.
SmartStop Self Storage REIT Inc. (NYSE:SMA) is a self-managed real estate investment trust (REIT) focused on growing its self-storage brand.
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