5 Best Small-Cap Value Stocks to Buy According to Bares Capital

4. Align Technology, Inc. (NASDAQ:ALGN)

Bares Capital Management’s Stake: $76 Million

Align Technology, Inc. (NASDAQ:ALGN) has consistently featured in the 13F portfolio of Bares Capital since the fourth quarter of 2018. Back then, this position comprised just over 88,000 shares. The fund added to this stake in the coming quarters, growing it to over 1.5 million shares by the first quarter of 2020. A trimming period followed, during which the fund reduced this to around 410,000 shares by early 2022. Another buying spree followed this trough. Filings for the third quarter of 2025 show that the fund owned over 609,000 shares in the firm, up close to 20% compared to filings for the previous quarter.

After a period of soft consumer demand, the Q1 2026 earnings report of Align Technology, Inc. (NASDAQ:ALGN) confirmed that the dental giant has successfully returned to growth, led by a surge in international adoption. The firm reported non-GAAP EPS of $2.58, crushing the analyst consensus of $2.30 by 12.1%. Revenue hit $1.04 billion, up 6.2% year-over-year, exceeding projections. Non-GAAP operating margins expanded to 21.5%, proving that the company’s 2025 restructuring efforts are paying off in the form of operating leverage. There is growing bullish momentum on Align’s success in the teen segment, which represents the largest untapped market in orthodontics. Shipments to teens and kids rose 4.8% year-over-year in Q1, led by explosive growth in China and Latin America.

READ ALSO: 15 Safe Stocks to Invest In For Beginners.