5 Best Small Cap Stocks to Buy with Highest Upside Potential

3. McGraw Hill, Inc. (NYSE:MH)

Analyst Upside: 79.46%

McGraw Hill, Inc. (NYSE:MH) is one of the best small cap stocks to buy with the highest upside potential. On July 6, BMO Capital cut the price target on McGraw Hill, Inc. (NYSE:MH) to $16 from $19 while maintaining an Outperform rating on the shares. The firm told investors in a research note that the company has gained market share in recent years, as it is helping the industry migrate from print to digital modalities. However, it also added that its top-line growth expectations are slightly subdued owing to lengthening purchase cycles.

McGraw Hill, Inc. (NYSE:MH) also received a rating update from Goldman Sachs on June 11. The firm cut the price target on the stock to $17 from $19 but reaffirmed a Buy rating on the shares, telling investors in a research note that the company delivered solid fiscal Q4 results, with revenue, EBITDA margins, and EPS outperforming the firm’s estimates and consensus. Goldman also added that the company’s newly introduced FY27 EBITDA guidance is ahead of the Street, partially offset by a modest revenue guidance shortfall that reflects timing rather than demand.

McGraw Hill, Inc. (NYSE:MH) is a holding company involved in the provision of content and digital education solutions. The company’s operations are divided into the following segments: K-12, Higher Education, Global Professional, and International.