10 Most Popular Small Cap Stocks to Buy

In this article, we are going to discuss the 10 most popular small cap stocks to buy.

The Russell 2000 index, which is comprised of America’s top small cap stocks by market cap, has surged by almost 12% since the beginning of 2026. This compares to gains of just under 8.3% posted by the S&P 500 during the period.

Small-cap stock territory is where the leaders of tomorrow are born, as some of the biggest companies in the world today started off small. An example is Nvidia, which went public at $12 per share back in 1999, and was firmly placed in the small-cap group. However, while these stocks can offer impressive growth prospects, they also come with higher risks, volatility, and a strong sensitivity to macroeconomic factors.

That said, small caps represent around 10% of the US market by market cap and are a must-have in any diversified portfolio, since investors who are worried about overexposure to the currently high-priced US market might find some small-cap valuations attractive.

With that said, here are the Best Small Cap Stocks to Buy According to Hedge Funds.

Our Methodology

To collect data for this article, we referred to screeners to find small cap stocks (with a market cap of between $300 million and $2 billion) with the highest number of hedge investors at the end of Q4 2025, as per the Insider Monkey database. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. The following are the Best Small Cap Stocks to Buy According to Hedge Funds.

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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

10. Profrac Holding Corp. (NASDAQ:ACDC)

Number of Hedge Fund Holders: 17

Market Cap as of May 19: $1.42 billion

ProFrac Holding Corp. (NASDAQ:ACDC) is a technology-focused energy services company operating in the United States.

On May 19, BofA bumped up its price target on ProFrac Holding Corp. from $4 to $4.75, but kept its ‘Underperform’ rating on the shares. The target boost, which still reflects a downside of almost 41% from the current levels, comes as the analyst firm updated its oilfield services models for Q1 earnings and 10-Q reports. BofA noted that its forecasts for 2027 and 2028 EBITDA are on average 10% and 16% above consensus, respectively.

ProFrac Holding Corp. reported a net loss of $81 million in its Q1 2026 report on May 7, up from a net loss of $141 million in the fourth quarter of 2025. However, the company’s EBITDA of $54 million was down by over 11% sequentially. According to ProFrac, the operational disruptions caused by the harsh winter storm earlier this year resulted in an estimated $9.3 million reduction to its consolidated adjusted EBITDA.

9. Getty Realty Corp. (NYSE:GTY)

Number of Hedge Fund Holders: 19

Market Cap as of May 19: $1.99 billion

Getty Realty Corp. (NYSE:GTY) is a publicly traded, net lease REIT specializing in convenience, automotive, and other single-tenant retail real estate.

On May 14, KeyBanc analyst Upal Rana bumped up the firm’s price target on Getty Realty Corp. from $33 to $36, while maintaining an ‘Overweight’ rating on the shares. The revised target, which reflects an upside of over 8% from the current price level, comes following the company’s Q1 report and recent investor meetings.

KeyBanc believes that Getty Realty Corp.’s strong financial position, including its over $625 million of liquidity, leverage of 4.2 times, and healthy investment spreads of 150 bps, positions the company well to fund its $125 million pipeline and boost volumes and future earnings growth. Although GTY has already outperformed its peers by 1,070 bps YTD, the analyst firm still views its valuation as attractive, citing a modest 2.9% multiple premium to peers on 2026 AFFO/share and an implied cap rate of 7.7%.

8. Expro Group Holdings N.V. (NYSE:XPRO)

Number of Hedge Fund Holders: 20

Market Cap as of May 19: $1.90 billion

Expro Group Holdings N.V. (NYSE:XPRO) is a global energy services company, delivering innovative, sustainable well solutions with a focus on safety, data, and performance.

Expro Group Holdings N.V. received a boost on May 19 when Freedom Broker upgraded the stock from ‘Sell’ to ‘Hold’, while keeping its price target unchanged at $16. The analyst firm cited valuation considerations for the upgrade, but noted that the company’s share repurchase strategy “raises questions”.

Expro Group Holdings N.V. reported better-than-expected results for its Q1 2026 on May 5, with the company beating estimates in both profits and revenue. The firm also announced that it had entered into a definitive agreement to acquire Enhanced Well Technologies in a deal worth approximately $215 million. The acquisition will be immediately accretive to cash flows and EBITDA margins, and it adds over $275 million of order backlog to the company’s portfolio.

Expro Group Holdings N.V. reaffirmed its guidance for full-year 2026. The company also sees a $10 million to $15 million revenue impact from the Middle East conflict in the second quarter.

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. 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. 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. was also recently included in our list of the 10 Best Energy Stocks to Buy Under $20 According to Billionaires.

6. Ouster, Inc. (NASDAQ:OUST)

Number of Hedge Fund Holders: 23

Market Cap as of May 19: $1.94 billion

Ouster, Inc. (NASDAQ:OUST) is a leader in sensing and perception for Physical AI across industrial, robotics, automotive, and smart infrastructure.

On May 7, Ouster, Inc. was downgraded by Cantor Fitzgerald from ‘Overweight’ to ‘Neutral’. According to the analyst, the move is based on valuation, despite the company reaffirming its 2026 outlook and launching its REV8 OS family of digital lidar sensors.

On the other hand, Oppenheimer turned more bullish on Ouster, Inc. on the same day and raised its price target on the stock from $40 to $40, while keeping its ‘Outperform’ rating. The analyst firm highlighted Ouster’s status as a pioneer of the digital lidar technology, especially following the launch of REV8 and the advanced capabilities of its L4 chip family.

Oppenheimer expects Ouster, Inc. to report a notable increase in sales as the year progresses and customers continue to adopt its technology. The analyst firm also expects a significant jump in demand once customers begin integrating REV8 data, enabling faster and more advanced capabilities into their products.

5. Agilysys, Inc. (NASDAQ:AGYS) 

Number of Hedge Fund Holders: 24

Market Cap as of May 19: $1.98 billion

Agilysys, Inc. (NASDAQ:AGYS) provides a hospitality management system that connects PMS, POS, payments, and guest experiences to help brands go beyond traditional hospitality.

On May 19, Oppenheimer raised its price target on Agilysys, Inc. from $90 to $100, while maintaining an ‘Outperform’ rating on the shares. The target boost, which represents an upside of over 35% from the current share price, comes on higher estimates and the company’s strong beat-and-guide-above in Q4. According to the analyst, the company has entered a strong upward trajectory in 2026 that should continue throughout the next year.

Agilysys, Inc. reported impressive results for its Q4 2026 results on May 18, with the company exceeding estimates in both profits and revenue. The firm delivered a record revenue of $82.9 million during the quarter, and its full-year 2026 revenue of $319.3 million ended up being well above guidance.

Agilysys, Inc. is now targeting its FY 2027 revenue to be in the range of $365 million to $370 million, with product revenue remaining flat and steady growth in services revenue. Moreover, the company expected 2027 to be the third consecutive year of subscription revenue growth of at least 30%.

4. Innospec Inc. (NASDAQ:IOSP)

Number of Hedge Fund Holders: 31

Market Cap as of May 19: $1.92 billion

Innospec Inc. (NASDAQ:IOSP) is a global specialty company with manufacturing, research centers, and operations in 24 countries. The company provides chemicals, additives, and formulations for markets including agrochemicals, construction, fuel additives, home care, metal extraction, oilfield, personal care, polymers, and waxes.

On May 8, Innospec Inc. declared a semi-annual dividend of $0.92 per share, up 5.7% from its prior payout of $0.87. The dividend is payable on May 29 to shareholders as of the May 19 record. Moreover, the company also announced a new share repurchase program of $75 million to further enhance its shareholder returns. IOSP currently boasts an annual dividend yield of 2.33%.

Innospec Inc. exceeded estimates in both profits and revenue in its Q1 2026 results on May 7. While the company’s revenue increased 3% YoY to $453.2 million, its adjusted EBITDA of $43.7 million was down 19% compared to last year. Moreover, excluding special items in both years, the company’s adjusted EPS for the quarter was $1.05, versus $1.42 in the year-ago period.

3. Flywire Corporation (NASDAQ:FLYW)

Number of Hedge Fund Holders: 32

Market Cap as of May 19: $1.95 billion

Flywire Corporation (NASDAQ:FLYW) is a global payments enablement and software company, on a mission to deliver the world’s most important and complex payments.

On May 19, Truist upped its price target on Flywire Corporation from $16 to $18, while maintaining a ‘Buy’ rating on the shares. The revised target indicates an upside potential of over 12% from the current share price.

The move comes after Flywire Corporation‘s 9% point organic revenue beat and the corresponding guidance raise in its recent Q1 report. Moreover, Truist highlighted the company’s recently announced direct share repurchase agreement, refreshed market data, and updated assumptions for student visa issuance as additional reasons behind the target boost.

Flywire Corporation exceeded estimates in both profits and revenue in its Q1 report on May 5, with broad-based outperformance across education, travel, healthcare, and B2B. Moreover, the company raised both revenue and EBITDA guidance for the full year 2026. Flywire also announced an accelerated share repurchase program of up to $50 million under its existing share repurchase authorization.

2. The Boston Beer Company, Inc. (NYSE:SAM)

Number of Hedge Fund Holders: 37

Market Cap as of May 19: $1.89 billion

The Boston Beer Company, Inc. (NYSE:SAM) produces and sells alcoholic beverages primarily in the United States. Its flagship beer is Samuel Adams Boston Lager.

On May 7, Morgan Stanley trimmed its price target on The Boston Beer Company, Inc. from $235 to $220, while maintaining an ‘Equal Weight’ rating on the shares. The lowered target still indicates an upside of over 23% from the current price level.

According to Morgan Stanley, the ongoing structural volume declines across the alcohol industry, and portfolio headwinds are expected to worsen even further due to the rising costs and broader macro pressure tied to the Middle East conflict.

The Boston Beer Company, Inc. also had a setback when it reported soft Q1 results last month, falling behind estimates in both earnings and revenue. The weakening alcohol demand led to depletions being down 4%, shipments down 6.9%, and revenue falling by 4.4% compared to the same period last year.

The Boston Beer Company, Inc. also narrowed its full-year adjusted EPS guidance to $8.50 to $10.50, from its prior outlook of $8.50 to $11.

1. TIC Solutions, Inc. (NYSE:TIC)

Number of Hedge Fund Holders: 41

Market Cap as of May 19: $1.97 billion

Topping our list of the Best Small Cap Stocks is TIC Solutions, Inc. (NYSE:TIC). It is a leading provider of tech-enabled Testing, Inspection, Certification, and Compliance (TICC) services and critical asset integrity solutions.

On May 7, JPMorgan raised its price target on TIC Solutions, Inc. from $7 to $9, but kept its ‘Underweight’ rating on the shares. The move comes despite TIC reporting mixed results for its Q1 2026 a day earlier.

TIC Solutions, Inc. reported an adjusted loss of $0.10 per share for its first quarter, compared to estimates of a profit of $0.02 per share. However, the company managed to grow its revenue by more than 108% YoY to $488 million and exceeded expectations by over $12 million. Moreover, its adjusted EBITDA of $57.7 million for the quarter was also up by over 123% compared to last year, primarily reflecting the inclusion of NV5 results.

TIC Solutions, Inc. reaffirmed its prior full-year 2026 guidance of $2.15 billion to $2.25 billion of revenue and $330 million to $355 million of adjusted EBITDA. Moreover, the company is targeting to deliver $3+ billion in revenue, 18%+ Adjusted EBITDA margin, and 85%+ Free Cash Flow Conversion by 2029.

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