12 Best Small Cap Stocks to Buy for Long Term

10. Capital Southwest Corporation (NASDAQ:CSWC)

Number of Hedge Fund Holders: 11

Capital Southwest Corporation (NASDAQ:CSWC) is one of the best small cap stocks to buy for the long term. B. Riley lifted the price target on Capital Southwest Corporation (NASDAQ:CSWC) to $24.50 from $24 on May 15 and maintained a Buy rating on the shares. The rating update came after the company reported its fiscal Q4 and full-year 2026 financial highlights, reporting a total investment portfolio of $2.1 billion for the quarter. The company’s credit portfolio was $1.9 billion, with current non-accruals with a fair value of $22.7 million, representing 1.1% of the total investment portfolio. Its balance sheet for the quarter represented cash and cash equivalents of $29.0 million, total net assets worth $1,011.0 million, and a net asset value per share of $16.69.

In its financial highlights for fiscal year 2026, Capital Southwest Corporation (NASDAQ:CSWC) reported that its total investment portfolio increased by $312.1 million in total fair value, from $1.8 billion to $2.1 billion, representing 17% growth during the year.

Capital Southwest Corporation (NASDAQ:CSWC) is an investment company that provides financing to middle-market companies.