In this article, we will take a look at the 14 Best Small Cap Stocks to Buy Right Now.
The S&P 600 and S&P BSE Small Cap indexes had soared 0.29% and 0.30%, respectively, while the Russell 2000 has jumped nearly 0.48% as of September 8. The U.S. job growth weakened acutely during August 2025, and the unemployment rate soared to almost a four-year high of 4.3%.
READ ALSO: 11 Low Price High Volume Stocks to Buy According to Analysts and 10 Best AI Software Stocks to Buy Now.
The U.S. labor data shows that labor market conditions are softening and moving towards a Fed interest rate cut later this month. The global head of FX research at HSBC, Paul Mackel, pointed out that “the data raises the question as to whether U.S. employment conditions are now shifting from cooling to deteriorating and if the Fed should cut rates faster.”
Mackel said that this has opened the door for the USD to weaken again, but the recent political tension around the yen and euro increases the likelihood of dollar weakness being reflected more easily against other currencies.
On September 7, the Treasury Secretary Scott Bessent said that he is confident that the President’s tariff plan will win at the Supreme Court. However, Bessent warned his agency would be forced to issue massive refunds in case the court gives a ruling against the tariffs.
“We would have to give a refund on about half the tariffs, which would be terrible for the Treasury,” Bessent said during an interview on NBC’s “Meet the Press.”
On August 14, BTIG analyst Jonathan Krinsky appeared on CNBC for an interview and talked about the sustainability of the recent small-cap rally. Krinsky mentioned that the current market situation resembles July 2024, when small caps were mostly flat while the Nasdaq performed well. The analyst added that following a better-than-expected CPI report, the small caps surged. This becomes more relevant as the markets are priced in for a September rate cut, Krinsky added.
Krinsky’s comments on the small caps seem to follow the similar trajectory, with the market indicating positive signals upon potential Fed interest rates.
With these market trends in mind, let’s turn to the 14 Best Small Cap Stocks to Buy Right Now.
Our Methodology
To compile the list of 14 best small cap stocks to buy right now, we shortlisted companies with a market capitalization equal to or under $2 billion from the Finviz screener. We then ranked these stocks in ascending order of the number of hedge fund holders. The data for hedge funds is taken from Insider Monkey’s Hedge Fund database, updated as of Q2 2025.
Note: The data was recorded on September 5.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
14 Best Small Cap Stocks to Buy Right Now
14. JetBlue Airways Corporation (NASDAQ:JBLU)
Market Capitalization: $1.84 Billion
Number of Hedge Fund Holders: 25
JetBlue Airways Corporation (NASDAQ:JBLU) is one of the best small cap stocks to buy right now. On September 4, JetBlue Airways Corporation (NASDAQ:JBLU) announced that it became the first airline to sign on with Amazon’s Project Kuiper.
JetBlue’s collaboration with Amazon makes it the first airline corporation to join Project Kuiper. This brings faster and more reliable connectivity to JetBlue’s popular onboard Wi-Fi, Fly-Fi. The airline company launched Fly-Fi in 2013 to become the first and still only leading U.S. airline to provide free, high-speed Wi-Fi on every aircraft of its fleet.
“Our agreement with Project Kuiper marks an exciting leap forward for us as the hands-down leader in onboard connectivity. Whether it’s binge-watching a favorite show, staying connected with loved ones, or wrapping up a work project, we’re always looking for ways to make our customers’ time in the air as connected and productive as they want it to be,” said Marty St. George, president, JetBlue.
Project Kuiper’s advanced cutting-edge technology will be available on JetBlue’s aircraft in 2027, marking the next evolution of Fly-Fi and in-flight connectivity. This move is part of JetBlue’s JetForward strategy, which focuses on providing services that customers value most.
JetBlue Airways Corporation (NASDAQ:JBLU) provides air transportation services across North America, South America, and Europe. The company’s fleet consists of five types of aircraft, including Airbus A220, Airbus A320, Airbus A321, Airbus A321neo, and Embraer E190.
13. ICF International, Inc. (NYSE:ICFI)
Market Capitalization: $1.75 Billion
Number of Hedge Fund Holders: 26
ICF International, Inc. (NYSE:ICFI) is one of the best small cap stocks to buy right now. On August 25, ICF International, Inc. (NYSE:ICFI) received a new, multi-year contract worth $40 million to implement large-scale residential energy programs.
ICF International will implement large-scale residential energy programs across six Southern California counties. In collaboration with local community organizations, ICF will help the counties integrate high-impact, no-cost energy and electrification upgrades. This upgrade will help thousands of households improve indoor air quality and reduce energy bills.
“Communities across the country are experiencing a tension between reliable power and affordability. We’re proud to couple three decades of energy program experience with the latest technology to help Southern California households have more reliable and affordable energy,” said Anne Choate, ICF executive vice president for energy, environment, and infrastructure.
ICF International will also install advanced digital twin technology to simulate, monitor, and analyze grid impact in a virtual environment before deployment. A few weeks prior to the company’s recent contract announcement, on August 11, Barrington increased its price target on ICFI from $102 to $107, keeping its Outperform rating on the stock. Kevin Steinke from Barrington remains optimistic on ICF International as the company continues to gain revenue from commercial energy clients, driven by robust demand for energy efficiency programs.
As of September 5, ICF International, Inc.’s (NYSE:ICFI) average price target of $98.50, based on analysts’ estimates, implies an upside of approximately 3.46% from current levels.
ICF International, Inc. (NYSE:ICFI) provides management, technology, and policy consulting and implementation services to government and commercial clients.
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