15 Best Small Cap Stocks to Buy According to Wall Street

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13. The Wendy’s Company (NASDAQ:WEN)

Market capitalization: $1.42B

Potential upside: 14.21%

Number of Hedge Fund Holders: 30

On February 6, 2026, Stifel analyst Chris O’Cull lowered his price target on The Wendy’s Company (NASDAQ:WEN) to $9 from $11 previously and maintained a Hold rating. The firm said fourth-quarter comparable results across the restaurant space are expected to be strong, with Wendy’s seen as a notable exception that likely continued to struggle.

Other firms also trimmed targets. On February 3, 2026, Citi reduced its price target on The Wendy’s Company (NASDAQ:WEN) to $8 from $9 previously and kept a Neutral rating. Earlier, on January 20, 2026, Morgan Stanley lowered its price target on The Wendy’s Company (NASDAQ:WEN) to $8 from $9 and maintained an Underweight rating as part of its 2026 outlook on restaurants and foodservice distributors.

On January 29, 2026, The Wendy’s Company (NASDAQ:WEN) said it is accelerating growth in Mexico and is seeking an experienced franchise partner to develop locations in Tijuana and Baja California. With more than 40 restaurants already operating in the country, management described Mexico as a strategic hub with long-term potential for more than 400 locations nationwide.

The Wendy’s Company (NASDAQ:WEN) operates and franchises quick-service restaurants in the United States and internationally, with segments spanning U.S. operations, international markets, and global real estate and development.

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