10 Most Popular Small Cap Stocks to Buy

7. Kosmos Energy Ltd. (NYSE:KOS)

Number of Hedge Fund Holders: 21

Market Cap as of May 19: $1.88 billion

Next on our list of the Best Small Cap Stocks is Kosmos Energy Ltd. (NYSE:KOS). It is a leading deepwater exploration and production company focused on meeting the world’s growing demand for energy.

On May 11, Bernstein boosted its price target on Kosmos Energy Ltd. (NYSE:KOS) from $2.10 to $2.40, while keeping a ‘Market Perform’ rating on the shares. The raised target still indicates a downside of over 24% from the current levels.

Bernstein acknowledged that the global oil markets could head in a multitude of directions in the current geopolitical landscape, including the extreme scenario of the waterway of Hormuz remaining closed for years. However, the firm updated its models assuming a return to normalcy by the mid of this year.

The target boost comes despite Kosmos Energy Ltd. (NYSE:KOS) falling behind estimates in its Q1 report on May 5. However, the company delivered a record daily and quarterly production during the quarter, driven by GTA fully ramped up and new wells at Jubilee. The energy firm expects to deliver production growth of 15% YoY in FY 2026, coming predominantly from its core, Jubilee, and GTA assets.

Moreover, Kosmos managed to reduce its operating costs by approximately 22% YoY, in addition to cutting its net debt by around 7% compared to year‑end 2025. The company intends to build on this momentum and raise its full‑year debt reduction target from 10% to approximately 20%.

Kosmos Energy Ltd. (NYSE:KOS) was also recently included in our list of the 10 Best Energy Stocks to Buy Under $20 According to Billionaires.