14 Best Small Cap Stocks to Buy Right Now

1. Victoria’s Secret & Co. (NYSE:VSCO)

Market Capitalization: $1.99 Billion

Number of Hedge Fund Holders: 44

Victoria’s Secret & Co. (NYSE:VSCO) is one of the best small cap stocks to buy right now. On August 29, UBS raised the price target on Victoria’s Secret & Co. (NYSE:VSCO) from $21 to $25, keeping its Neutral rating on the stock.

Mauricio Serna from UBS increased the price target on VSCO following the Q2 FY2025 earnings release. The analyst pointed out that the company’s quarterly report shows its turnaround is gaining traction. Victoria’s Secret surpassed its top and bottom line guidance and also exceeded analyst consensus by $52.92 million, posting $1.46 billion in revenue during Q2. The company’s net sales soared 3% year-over-year, with comp sales growing by 4%, reflecting robust momentum across both Victoria’s Secret and PINK brands.

International sales were the key to strong performance for the company, growing 22% year-over-year, indicating the strength of global partnerships and brand relevance. The launch of the Body by Victoria Collection was a success, bringing in double-digit new customer growth and increased engagement. On August 28, Barclays analyst Adrienne Yih also increased the price target on VSCO from $23 to $27, keeping its Buy rating. The analyst remains positive on Victoria’s Secret’s strong growth in Q2 and its raised FY2025 outlook, with net sales expected between $6.33 billion and $6.41 billion compared to the previous guidance of $6.20 billion and $6.30 billion.

As of September 5, Victoria’s Secret & Co. (NYSE:VSCO) average price target of $23, based on analysts’ estimates, implies a downside of almost 12.38% from current levels.

Victoria’s Secret & Co. (NYSE:VSCO) is a leading specialty retailer for women’s intimate apparel and other apparel and beauty products. The company sells its products under the Victoria’s Secret, PINK, and Adore Me brands.

While we acknowledge the potential of VSCO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VSCO and that has 100x upside potential, check out our report about this cheapest AI stock.

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