In this article, we discuss the 5 cheap small-cap stocks to buy. If you want to read our detailed analysis of cheap small-cap stocks, go directly to the 10 Cheap Small-Cap Stocks to Buy.
5. VEON Ltd. (NASDAQ: VEON)
Number of Hedge Fund Holders: 13
Market Cap: $3.86 billion
Share Price as of September 13: $2.21
VEON Ltd. (NASDAQ: VEON) is a Dutch telecommunication and digital services company that offers services in telecommunication, voice, broadband, and wireless internet. The company ranks fifth on our list of the best cheap small-cap stocks to buy.
Recently, VEON Ltd. (NASDAQ: VEON) has signed an agreement to promote its Russian mobile network towers to Service Telecom, a Russian independent tower company. The deal is valued at $970 million and would provide an opportunity for the company to expand its operations in Russia, where it is already operating over 15,000 communication towers. In Q2 2021, VEON Ltd. (NASDAQ: VEON) reported revenue of $2.06 billion, beating the estimates by $46.1 million.
In August, BofA double-upgraded VEON Ltd. (NASDAQ: VEON) to ‘Buy’ with a $2.70 price target due to the company’s strong balance sheet. The firm’s analyst Cesar Tiron noted the company’s potential in its tower monetization and estimated that its free cash flow could rise to $624 million in 2023. VEON Ltd. (NASDAQ: VEON) gained 80.08% in the past year and 41.08% year to date.
The number of hedge funds having stakes in VEON Ltd. (NASDAQ: VEON) grew from 8 in the previous quarter to 13 in Q2 2021. The total value of these stakes is $51.4 million, compared with $20.2 million in the previous quarter. With 15.7 million shares, worth $28.8 million, Shah Capital Management is the company’s leading shareholder.
4. Pieris Pharmaceuticals, Inc. (NASDAQ: PIRS)
Number of Hedge Fund Holders: 14
Market Cap: $372.9 million
Share Price as of September 13: $5.59
Pieris Pharmaceuticals, Inc. (NASDAQ: PIRS) stands fourth on our list of the best cheap small-cap stocks to buy. It is a clinical-stage biotechnology company that develops medicines by combining protein engineering capabilities and a deep understanding of the molecular drivers of a particular disease.
In June, Jefferies lifted its price target on Pieris Pharmaceuticals, Inc. (NASDAQ: PIRS) to $8, with a ‘Buy’ rating on the shares. The firm’s analyst Roger Song noted the company’s potential in the development of PRS-220 for post-Covid-19 syndrome pulmonary fibrosis, for which Pieris Pharmaceuticals, Inc. (NASDAQ: PIRS) acquired a $17 million grant. In Q2 2021, Pieris Pharmaceuticals, Inc. (NASDAQ: PIRS) posted a GAAP EPS of -$0.25, beating the consensus by $0.02. The company also beat revenue estimates by $1.21 million at $3.29 million. After hitting a low of $1.98 per share in March 2020 due to the global economic clampdown, the stock is now traded at $5.57 per share. Pieris Pharmaceuticals, Inc. (NASDAQ: PIRS) soared 90.6% in the past year and 103.9% year to date.
As of Q2 2021, 14 hedge funds tracked by Insider Monkey have positions in Pieris Pharmaceuticals, Inc. (PIRS), worth $65.3 million. The number of hedge funds having stakes in the company remained the same in the previous quarter, with a total stake value of $36.8 million.
3. Express, Inc. (NYSE: EXPR)
Number of Hedge Fund Holders: 16
Market Cap: $389.9 million
Share Price as of September 13: $5.83
Express, Inc. (NYSE: EXPR) is an American fashion retailer and an apparel brand that caters to young men and women. The company ranks third on our list of the best cheap small-cap stocks to buy. Express, Inc. (NYSE: EXPR) was founded in 1980 and has headquarters in Ohio, U.S.
In June, B. Riley lifted its price target on Express, Inc. (NYSE: EXPR) to $4.50, while keeping a ‘Buy’ rating on the shares. The firm’s analyst appreciated the management for focusing on location and experience while reducing store sizing. In Q2 2021, Express, Inc. (NYSE: EXPR) posted an EPS of $0.02, beating the consensus by $0.32. The company generated $457.6 million in revenue, up 86.3% from the prior-year quarter. Since the beginning of the year, Express, Inc. (NYSE: EXPR) delivered a 524.7% return to shareholders, while the stock gained 498.9% in the past year.
As of Q2 2021, we see that hedge funds are also turning bullish on Express, Inc. (NYSE: EXPR), as the number of hedge funds having stakes in the company in the quarter stood at 19, up from 12 in the previous quarter. These stakes are valued at $109.1 million.
2. Ferroglobe PLC (NASDAQ: GSM)
Number of Hedge Fund Holders: 19
Market Cap: $1.63 billion
Share Price as of September 13: $9.16
Ferroglobe PLC (NASDAQ: GSM) stands second on our list of the best cheap small-cap stocks to buy. It is the leading producer of silicon metal and its alloys, along with manganese alloys. The company also combines technological advances for the production processes of industrial and consumer products.
In Q2 2021, Ferroglobe PLC (NASDAQ: GSM) reported revenue of $418.5 million, presenting a 67.4% year-over-year growth. The company generated $37.8 million from operations and returned to a positive net cash flow of $21.6 million during the second quarter. Ferroglobe PLC (NASDAQ: GSM) attributed solid results to strong pricing across all product categories. In June, B. Riley set its price target on Ferroglobe PLC (NASDAQ: GSM) at $5, with a ‘Buy’ rating on the shares. The stock gained 479.7% year to date and 1,808% in the past year.
The number of hedge funds having stakes in Ferroglobe PLC (NASDAQ: GSM) increased to 19 in Q2 2021, compared with 16 in the previous quarter. The total value of these stakes is $145.7 million. Jeremy Hosking’s Hosking Partners is the company’s leading shareholder with 4.48 million shares, worth $27.4 million.
1. Comstock Resources, Inc. (NYSE: CRK)
Number of Hedge Fund Holders: 20
Market Cap: $2.008 billion
Share Price as of September 13: $8.63
Comstock Resources, Inc. (NYSE:CRK) is an American energy company that is engaged in the acquisition, exploration, and development of natural gas and oil. In addition to this, the company is also focused on its drilling activities to expand the natural gas development in the U.S. Comstock Resources, Inc. (NYSE: CRK) tops our list of the best cheap small-cap stocks to buy.
In July, Mizuho lifted its price target on Comstock Resources, Inc. (NYSE: CRK) to $10, with a ‘Buy’ rating on the shares. The firm’s analyst Vincent Lovaglio believes that the company’s natural gas exploration and development has higher potential as compared to oil exploration. In Q2 2021, Comstock Resources, Inc. (NYSE: CRK) posted an EPS of $0.22, beating the consensus by $0.05. The company’s revenue for the quarter stood at $343.6 million, showcasing 91.4% year-over-year growth. Since the beginning of the year, Comstock Resources, Inc. (NYSE: CRK) delivered an 88.9% return, while its 12-month returns stood at 71.8%.
As of Q2 2021, 20 hedge funds tracked by Insider Monkey have positions in Comstock Resources, Inc. (NYSE: CRK), worth $145.7 million. The number of hedge funds is up from 14 in the previous quarter, with a total value of $75.5 million. Encompass Capital Advisor is the company’s leading shareholder, with 3.7 million shares, worth $25.3 million.
You can also take a look at 15 Best Small-Cap Healthcare Stocks to Buy and 10 Best Small Cap Stocks to Buy in 2021
