In this article, we will take a look at the 5 Most Popular Small Cap Stocks to Buy. For a deeper discussion and analysis, please refer to the 10 Most Popular Small Cap Stocks to Buy.
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5. Agilysys, Inc. (NASDAQ:AGYS)
Number of Hedge Fund Holders: 24
Market Cap as of May 19: $1.98 billion
Agilysys, Inc. (NASDAQ:AGYS) provides a hospitality management system that connects PMS, POS, payments, and guest experiences to help brands go beyond traditional hospitality.
On May 19, Oppenheimer raised its price target on Agilysys, Inc. (NASDAQ:AGYS) from $90 to $100, while maintaining an ‘Outperform’ rating on the shares. The target boost, which represents an upside of over 35% from the current share price, comes on higher estimates and the company’s strong beat-and-guide-above in Q4. According to the analyst, the company has entered a strong upward trajectory in 2026 that should continue throughout the next year.
Agilysys, Inc. (NASDAQ:AGYS) reported impressive results for its Q4 2026 results on May 18, with the company exceeding estimates in both profits and revenue. The firm delivered a record revenue of $82.9 million during the quarter, and its full-year 2026 revenue of $319.3 million ended up being well above guidance.
Agilysys, Inc. (NASDAQ:AGYS) is now targeting its FY 2027 revenue to be in the range of $365 million to $370 million, with product revenue remaining flat and steady growth in services revenue. Moreover, the company expected 2027 to be the third consecutive year of subscription revenue growth of at least 30%.
4. Innospec Inc. (NASDAQ:IOSP)
Number of Hedge Fund Holders: 31
Market Cap as of May 19: $1.92 billion
Innospec Inc. (NASDAQ:IOSP) is a global specialty company with manufacturing, research centers, and operations in 24 countries. The company provides chemicals, additives, and formulations for markets including agrochemicals, construction, fuel additives, home care, metal extraction, oilfield, personal care, polymers, and waxes.
On May 8, Innospec Inc. (NASDAQ:IOSP) declared a semi-annual dividend of $0.92 per share, up 5.7% from its prior payout of $0.87. The dividend is payable on May 29 to shareholders as of the May 19 record. Moreover, the company also announced a new share repurchase program of $75 million to further enhance its shareholder returns. IOSP currently boasts an annual dividend yield of 2.33%.
Innospec Inc. (NASDAQ:IOSP) exceeded estimates in both profits and revenue in its Q1 2026 results on May 7. While the company’s revenue increased 3% YoY to $453.2 million, its adjusted EBITDA of $43.7 million was down 19% compared to last year. Moreover, excluding special items in both years, the company’s adjusted EPS for the quarter was $1.05, versus $1.42 in the year-ago period.
3. Flywire Corporation (NASDAQ:FLYW)
Number of Hedge Fund Holders: 32
Market Cap as of May 19: $1.95 billion
Flywire Corporation (NASDAQ:FLYW) is a global payments enablement and software company, on a mission to deliver the world’s most important and complex payments.
On May 19, Truist upped its price target on Flywire Corporation (NASDAQ:FLYW) from $16 to $18, while maintaining a ‘Buy’ rating on the shares. The revised target indicates an upside potential of over 12% from the current share price.
The move comes after Flywire Corporation (NASDAQ:FLYW)‘s 9% point organic revenue beat and the corresponding guidance raise in its recent Q1 report. Moreover, Truist highlighted the company’s recently announced direct share repurchase agreement, refreshed market data, and updated assumptions for student visa issuance as additional reasons behind the target boost.
Flywire Corporation (NASDAQ:FLYW) exceeded estimates in both profits and revenue in its Q1 report on May 5, with broad-based outperformance across education, travel, healthcare, and B2B. Moreover, the company raised both revenue and EBITDA guidance for the full year 2026. Flywire also announced an accelerated share repurchase program of up to $50 million under its existing share repurchase authorization.
2. The Boston Beer Company, Inc. (NYSE:SAM)
Number of Hedge Fund Holders: 37
Market Cap as of May 19: $1.89 billion
The Boston Beer Company, Inc. (NYSE:SAM) produces and sells alcoholic beverages primarily in the United States. Its flagship beer is Samuel Adams Boston Lager.
On May 7, Morgan Stanley trimmed its price target on The Boston Beer Company, Inc. (NYSE:SAM) from $235 to $220, while maintaining an ‘Equal Weight’ rating on the shares. The lowered target still indicates an upside of over 23% from the current price level.
According to Morgan Stanley, the ongoing structural volume declines across the alcohol industry, and portfolio headwinds are expected to worsen even further due to the rising costs and broader macro pressure tied to the Middle East conflict.
The Boston Beer Company, Inc. (NYSE:SAM) also had a setback when it reported soft Q1 results last month, falling behind estimates in both earnings and revenue. The weakening alcohol demand led to depletions being down 4%, shipments down 6.9%, and revenue falling by 4.4% compared to the same period last year.
The Boston Beer Company, Inc. (NYSE:SAM) also narrowed its full-year adjusted EPS guidance to $8.50 to $10.50, from its prior outlook of $8.50 to $11.
1. TIC Solutions, Inc. (NYSE:TIC)
Number of Hedge Fund Holders: 41
Market Cap as of May 19: $1.97 billion
Topping our list of the Best Small Cap Stocks is TIC Solutions, Inc. (NYSE:TIC). It is a leading provider of tech-enabled Testing, Inspection, Certification, and Compliance (TICC) services and critical asset integrity solutions.
On May 7, JPMorgan raised its price target on TIC Solutions, Inc. (NYSE:TIC) from $7 to $9, but kept its ‘Underweight’ rating on the shares. The move comes despite TIC reporting mixed results for its Q1 2026 a day earlier.
TIC Solutions, Inc. (NYSE:TIC) reported an adjusted loss of $0.10 per share for its first quarter, compared to estimates of a profit of $0.02 per share. However, the company managed to grow its revenue by more than 108% YoY to $488 million and exceeded expectations by over $12 million. Moreover, its adjusted EBITDA of $57.7 million for the quarter was also up by over 123% compared to last year, primarily reflecting the inclusion of NV5 results.
TIC Solutions, Inc. (NYSE:TIC) reaffirmed its prior full-year 2026 guidance of $2.15 billion to $2.25 billion of revenue and $330 million to $355 million of adjusted EBITDA. Moreover, the company is targeting to deliver $3+ billion in revenue, 18%+ Adjusted EBITDA margin, and 85%+ Free Cash Flow Conversion by 2029.
While we acknowledge the potential of TIC 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 TIC and that has 100x upside potential, check out our report about the cheapest AI stock.
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