10 Cheap Small Cap Stocks to Invest In Now

3. Simply Good Foods Company (NASDAQ:SMPL)

​Forward P/E: 9.99

Market Cap: $1.90 billion

Number of Hedge Fund Holders: 35

Simply Good Foods Company (NASDAQ:SMPL) is one of the best cheap small cap stocks to invest in now. Simply Good Foods Company (NASDAQ:SMPL) received a rating update from Bernstein analyst Alexia Burland Howard on November 21, who maintained a Buy rating on the stock and set a price target of $28. However, Mizuho lowered the price target on the stock to $35 from $43 on November 12 while maintaining an Outperform rating, citing the cost inflation and extended distribution declines for Atkins causing a delay in the company’s expected EBITDA acceleration for the target cut.

In addition, Simply Good Foods Company (NASDAQ:SMPL) reported solid fiscal year 2025 results on October 23, with net sales of $369.0 million in fiscal Q4 2025 and a net loss of $12.4 million versus net income of $29.3 million. Adjusted diluted EPS for the quarter reached $0.46 compared to $0.50 in the prior year period.

In fiscal year 2025, Simply Good Foods Company (NASDAQ:SMPL) reported a 9% growth in net sales on a reported basis and 3% Adjusted EBITDA growth. Organic net sales also rose 3%, supported primarily by the continued strong double-digit consumption for both Quest and OWYN.

Management added that the company largely completed the integration of OWYN, leveraged its strong cash flow to improve its balance sheet, and invested meaningfully in its brands despite inflationary pressures. The company’s fiscal year 2026 outlook shows net sales expected between -2% and +2% year-over-year, and gross margins expected to decline between 100 and 150 basis points year-over-year.

Simply Good Foods Company (NASDAQ:SMPL) is a consumer packaged food and beverage company that develops, sells, and markets nutritional food and snacking items. The company’s product portfolio includes snacks, frozen meals, protein bars, ready-to-drink shakes, and frozen meals under the Quest and Atkins brands.