In this article, we will list the 5 Cheap Small Cap Stocks to Buy Now. Please visit 10 Cheap Small Cap Stocks to Buy Now if you would like to see the extended list and the methodology behind it.
5. Innoviva, Inc. (NASDAQ:INVA)
Number of Hedge Fund Holders: 26
Innoviva, Inc. (NASDAQ:INVA) is one of the best cheap small cap stocks to buy now. Nortiva Bio, Inc., which is a wholly owned subsidiary of Innoviva, Inc. (NASDAQ:INVA), announced on June 18 its launch as a clinical-stage biopharmaceutical company dedicated to the development of long-acting oral medicines using its proprietary LYNX™ drug delivery platform. Innoviva, Inc. (NASDAQ:INVA) acquired the LYNX platform from Lyndra Therapeutics, Inc. in 2025, with the platform capable of transforming daily pills into long-acting oral therapies with single doses that last up to a month in multiple therapeutic areas. Management stated that the advancement can improve medication adherence, optimize efficacy and safety, and positively impact patients’ quality of life.
It further stated that the LYNX platform is built on “foundational science from the labs of Robert Langer and Gio Traverso at MIT”, bolstered by years of clinical validation, development, and research, which includes proof of concept in multiple therapeutic areas and a successful Phase 3 study.
Innoviva, Inc. (NASDAQ:INVA) is involved in the development, commercialization, and financial management of biopharmaceuticals.
4. Alkami Technology, Inc. (NASDAQ:ALKT)
Number of Hedge Fund Holders: 27
Alkami Technology, Inc. (NASDAQ:ALKT) is one of the best cheap small cap stocks to buy now. JPMorgan cut the price target on Alkami Technology, Inc. (NASDAQ:ALKT) to $19 from $20 on June 22 and maintained an Overweight rating on the shares, telling investors in a research note that the firm rolled forward its price targets to December 2027 from December 2026 across its banking technology and digital banking coverage. JPMorgan further stated that it holds a constructive view on the group, and stated that “AI-defensibility concerns appear overstated relative to the entrenched workflow, data, and compliance moats these vendors have built.”
The firm further told investors that its highest conviction ideas remain fiscal Q2 and Alkami, adding that the companies operate in a consolidated, duopolistic digital banking market featuring strong retention, long contract durations, and paths to free cash flow expansion. JPMorgan added that Alkami Technology, Inc. (NASDAQ:ALKT) screens as its “high-conviction takeout candidate” amid activist pressure.
Alkami Technology, Inc. (NASDAQ:ALKT) provides digital banking software solutions to credit unions, credit union service organizations, banks, and service bureaus.
3. Walker & Dunlop, Inc. (NYSE:WD)
Number of Hedge Fund Holders: 30
Walker & Dunlop, Inc. (NYSE:WD) is one of the best cheap small cap stocks to buy now. Keefe Bruyette cut the price target on Walker & Dunlop, Inc. (NYSE:WD) to $63 from $67 on June 15, and maintained an Outperform rating on the shares. The firm told investors in a research note that it is “slightly” more cautious on the commercial real estate outlook.
In a separate development, Walker & Dunlop, Inc. (NYSE:WD) announced on June 24 that it has arranged $128.23 million in refinancing for a four-property, 986-unit multifamily portfolio in Eugene, Oregon. The transaction was arranged by Walker & Dunlop Capital Markets Real Estate Finance on behalf of an experienced local client. It added that the refinancing was led by Steven Natale and included four multifamily communities located throughout Eugene. Natale, managing director of Capital Markets Real Estate Finance at Walker & Dunlop, Inc. (NYSE:WD), stated that the company is continuing to see “strong demand for well-located multifamily communities that offer a compelling combination of affordability, operational stability, and long-term market fundamentals”.
Walker & Dunlop, Inc. (NYSE:WD) is a holding company involved in the provision of real estate and finance services. The company’s operations are divided into the following segments: Capital Markets, Servicing and Asset Management, and Corporate.
2. The Goodyear Tire & Rubber Company (NASDAQ:GT)
Number of Hedge Fund Holders: 38
The Goodyear Tire & Rubber Company (NASDAQ:GT) is one of the best cheap small cap stocks to buy now. Argus cut the price target on The Goodyear Tire & Rubber Company (NASDAQ:GT) to $9 from $13 on June 4 and maintained a Buy rating on the shares, telling investors in a research note that the company has experienced several big challenges over the past few years, ranging from rising raw material costs, higher capital expenditures, and slower consumer and commercial demand to low-priced Asian imports into the United States, and more recently, to trade and tariff legislation.
However, the firm also stated that it believes that The Goodyear Tire & Rubber Company (NASDAQ:GT) is meeting all these obstacles head-on with a rational and well-thought-out strategic plan, which is the “Goodyear Forward” plan that focuses on divesting noncore assets, lowering corporate debt, reducing structural costs, and prioritizing higher-margin, premium tire segments. The Goodyear Tire & Rubber Company (NASDAQ:GT) also received a rating update from JPMorgan on May 11. The firm cut the price target on the stock to $9 from $10 and maintained an Overweight rating on the shares.
The Goodyear Tire & Rubber Company (NASDAQ:GT) develops, manufactures, distributes, and sells tires. The company’s operations are divided into the following geographical segments: Americas, Europe, the Middle East, Africa, and Asia Pacific.
1. nCino, Inc. (NASDAQ:NCNO)
Number of Hedge Fund Holders: 40
nCino, Inc. (NASDAQ:NCNO) is one of the best cheap small cap stocks to buy now. nCino, Inc. (NASDAQ:NCNO) received a rating update from JPMorgan on June 22. The firm lifted the price target on the stock to $17 from $16 and maintained a Neutral rating on the shares, stating that the firm rolled forward its price targets to December 2027 from December 2026 across its banking technology and digital banking coverage. JPMorgan told investors in a research note that it holds a constructive view on the group, and stated that “AI-defensibility concerns appear overstated relative to the entrenched workflow, data, and compliance moats these vendors have built.”
The firm further told investors that its highest conviction ideas remain fiscal Q2 and Alkami, adding that the companies operate in a consolidated, duopolistic digital banking market featuring strong retention, long contract durations, and paths to free cash flow expansion. JPMorgan added that Alkami screens as its “high-conviction takeout candidate” amid activist pressure.
nCino, Inc. (NASDAQ:NCNO) provides cloud-based software applications for financial institutions in the United States and internationally.
While we acknowledge the potential of NCNO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NCNO and that has 100x upside potential, check out our report about the cheapest AI stock.
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