In this article, we will look at the 12 Best Small Cap Stocks to Buy for Long Term.
On June 9, Tom Lee of Fundstrat appeared on CNBC’s ‘Closing Bell’ to talk about what to think of the equity markets, the state of the chip stocks, and much more.
To him, the market is showing a lot of signs of jitters; the jitters in front of the SpaceX IPO, and just consolidating all these gains. We also know that there is a lot of future capital that is going to be raised by Google, Meta, OpenAI, and Anthropic. He thus believes that the market is trying to sort out all this in front of the Space IPO. Lee thinks this is healthy, though, and also does not think that this is going to derail the tech trade either.
READ ALSO: 12 Best NYSE Stocks to Buy for Long-Term Investment AND 10 Best Long Term Stocks to Buy Under $20.
Further talking about SpaceX’s $75 billion IPO, he stated that because of its index inclusion into the Nasdaq 100, a lot of institutional funds are now going to not only raise funds to buy the IPO but also to have cash available to actually position size. Lee also said that the good sign is that the memory stocks held above the Friday lows, and the same thing happened with semis. He therefore thinks that there are basically gut punches being seen there, but he does not believe that it means those charts are completely broken.
With these broader market trends in view, let’s look at the best small cap stocks to buy for the long term.
Our Methodology
We used the Finviz stock screener to identify the best small-cap stocks with a 5-year sales growth of over 30%. We then selected the top 12 stocks most popular among hedge funds as of Q1 2026, using the hedge fund sentiment data from Insider Monkey’s database. The stocks are arranged in ascending order of hedge fund sentiment.
Note: All data was recorded on June 15.
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. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
12 Best Small Cap Stocks to Buy for Long Term
12. Nanobiotix S.A. (NASDAQ:NBTX)
Number of Hedge Fund Holders: 1
Nanobiotix S.A. (NASDAQ:NBTX) is one of the best small cap stocks to buy for the long term. Nanobiotix S.A. (NASDAQ:NBTX) announced on June 2 an update on operational progress and reported financial results for the first quarter of 2026. The company reported €42.1 million in cash and cash equivalents as of March 31, 2026, adding that it is expected to be sufficient to meet its working capital requirements for operations into 2029, which is consistent with the company’s currently contemplated cash burn rate.
It also reported the completion of a follow-on offering in May 2026 for aggregate gross proceeds of approximately €86.1 million, which includes issuance of pre-funded warrants to accelerate the development of Nanobiotix’s (NASDAQ:NBTX) other platforms. Furthermore, the company presented new data from Part 1 of the J&J-sponsored Phase 2 CONVERGE study at the 2026 annual European Society for Radiotherapy and Oncology, which was evaluating JNJ-1900 for patients with Stage 3 inoperable non-small cell lung cancer. Nanobiotix S.A. (NASDAQ:NBTX) also announced the FDA acceptance of a “protocol amendment to ongoing pivotal J&J sponsored NANORAY-312 study eliminating the previously planned interim analysis and modifying the final analysis to include fewer events and to be conducted sooner”.
Nanobiotix S.A. (NASDAQ:NBTX) is a late-stage biotechnology company that develops therapeutic approaches to treat cancer. The company’s technologies include NanoXray, which improves the efficacy of radiation therapy against tumor cells.
11. Agilon Health, Inc. (NYSE:AGL)
Number of Hedge Fund Holders: 8
Agilon Health, Inc. (NYSE:AGL) is one of the best small cap stocks to buy for the long term. Barclays upgraded Agilon Health, Inc. (NYSE:AGL) to Equal Weight from Underweight on May 26, setting a price target of $81 for the stock. The firm believes that the outlook for value-based care has “materially improved in recent weeks, driven by encouraging signs” of stabilizing cost trends and a more favorable 2027 Medicare Advantage rate outcome. It further told investors in a research note that the company’s fiscal Q1 report “significantly de-risks” forward estimates.
Agilon Health, Inc. (NYSE:AGL) also received a rating update from Benchmark on May 21, with the firm lifting the price target on the stock to $95 from $13 and reiterating a Buy rating on the shares. It stated that after a “remarkable” year-to-date performance, the firm thinks the current valuation “may restrain additional near-term performance”. However, Benchmark also believes that the company is in “the very early days of dramatic margin expansion with the potential for accelerating growth and longer-term stock performance.”
Agilon Health, Inc. (NYSE:AGL) provides healthcare services and is also involved in the provision of capital, payor relationships, data, executive experience, and contract support that allow physician groups to take on the risk of total care for their patients.
Hedge Fund Resource Center