In this article, we will list the 5 Must-Buy Small Cap Stocks to Buy. Please visit 8 Must-Buy Small Cap Stocks to Buy if you would like to see the extended list and the methodology behind it.
5. MapLight Therapeutics, Inc. (NASDAQ:MPLT)
Number of Hedge Fund Holders: 21
Year-To-Date Performance: 70.01%
Market Capitalization: $1.29 billion
Stock Upside: 26.27%
MapLight Therapeutics, Inc. (NASDAQ:MPLT) is one of the must-buy small cap stocks to buy. On April 7, TD Cowen analyst Joseph Thome initiated coverage on MapLight Therapeutics, Inc. (NASDAQ:MPLT) with a Buy rating. The analyst cited the company’s pipeline of treatments targeting the central nervous system, or CNS, and neuropsychiatric conditions.
Thome’s bullish thesis is built around ML-007C-MA, which is MapLight’s lead drug candidate designed to improve on the profile of Cobenfy. Cobenfy is a Bristol Myers Squibb (NYSE:BMY) product used for adults with schizophrenia. ML-007C-MA is a Cobenfy competitor and MapLight intends it to work just like the latter but with improved convenience.
MapLight’s drug targets the same M1/M4 receptor mechanism as Cobenfy but with better tolerability, safety, or dosing frequency, according to the company. The company initiated the drug’s Phase 2 trial on September 17, 2025, and expects the data to be out in Q3 2026. MapLight is also running a Phase 2 study of ML-007C-MA in Alzheimer’s psychosis, an indication that, if successful, would significantly expand the drug’s addressable market beyond schizophrenia. A second pipeline asset, ML-004, is in a Phase 2 study for autism spectrum disorder, or ASD, whose data is also anticipated in Q3 2026. Thome noted that the stock is undervalued based on the schizophrenia opportunity alone.
MapLight Therapeutics, Inc. (NASDAQ:MPLT) is a clinical-stage biotechnology company. It develops therapies for central nervous system disorders, including schizophrenia, Alzheimer’s disease psychosis, autism spectrum disorder, and Parkinson’s disease. Its pipeline includes multiple drug candidates such as ML-007C-MA and ML-004.
4. Compass Diversified Holdings (NYSE:CODI)
Number of Hedge Fund Holders: 21
Year-To-Date Performance: 127.53%
Market Capitalization: $796.00 million
Stock Upside: 20.51%
Compass Diversified Holdings (NYSE:CODI) is one of the must-buy small cap stocks to buy. On March 30, Compass Diversified Holdings (NYSE:CODI) announced it had signed a definitive agreement to sell the foodservice business of its subsidiary, SternoCandleLamp Holdings, Inc., to Archer Foodservice Partners for an enterprise value of $292.5 million. Archer Foodservice Partners is a portfolio company of private equity firm Wynnchurch Capital.
Compass emphasized that it is selling only Sterno’s foodservice operations, not the entire SternoCandleLamp business. Before closing, the company will spin off Sterno’s home fragrance arm and retain it within its own portfolio. It will be operated through a subsidiary called Rimports, LLC.
The asset being sold, Sterno, is a 100-year-old brand headquartered in Texarkana, TX. It is best known for chafing fuel products widely used in catering and hospitality. It also makes buffet accessories, candles, and flameless heating units, mostly manufactured in-house across facilities in Texarkana, Memphis, TN, and La Porte, IN.
According to Compass CEO Elias Sabo, the deal will allow the company to reduce debt. He described the transaction as a critical step in reducing leverage at CODI and part of a broader commitment to “take decisive action – strategically selling businesses, rapidly deleveraging the balance sheet and addressing the gap between the market price and our intrinsic value.”
Compass expects the transaction to close in Q2 2026. This is after regulatory approvals and the execution of a Transition Services Agreement.
Compass Diversified Holdings (NYSE:CODI) is a holding company that acquires and manages controlling stakes in middle-market businesses across branded consumer and industrial sectors. Its portfolio includes subsidiaries involved in manufacturing, consumer products, and industrial services.
3. Vir Biotechnology, Inc. (NASDAQ:VIR)
Number of Hedge Fund Holders: 30
Year-To-Date Performance: 73.91%
Market Capitalization: $1.65 billion
Stock Upside: 101.41%
Vir Biotechnology, Inc. (NASDAQ:VIR) is one of the must-buy small cap stocks to buy. On April 13, Vir Biotechnology, Inc. (NASDAQ:VIR) announced that it had dosed the first patient in one of three dose-expansion cohorts in its ongoing Phase 1 trial of VIR-5500. VIR-5500 is an investigational treatment for metastatic prostate cancer.
VIR-5500 is a type of therapy that redirects the immune system’s T-cells to attack cancer cells expressing the prostate-specific membrane antigen (PSMA). It leverages Vir’s proprietary PRO-XTEN dual-masked T-cell engager (TCE) technology. The “masking” component of the technology is designed to reduce the risk of cytokine release syndrome (CRS), which is a dangerous immune overreaction that typically limits how aggressively T-cell engagers can be dosed, according to Vir.
The company said the expansion cohort is now enrolling targets patients with late-line metastatic castration-resistant prostate cancer, or mCRPC. These are male patients whose disease has progressed despite multiple prior treatments. According to Vir, this is the most difficult-to-treat population in prostate cancer.
Vir said plans are in motion for two additional expansion cohorts. One cohort will trial VIR-5500 in combination with enzalutamide for early-line mCRPC. The other one will be a combination cohort for metastatic hormone-sensitive prostate cancer, or mHSPC. The company expects the first patient dosing in both cohorts over the coming months.
Vir claims VIR-5500 is currently the only dual-masked PSMA-targeting TCE in clinical evaluation, and this distinguishes the therapy from other PSMA-targeted agents already on or approaching the market.
Vir Biotechnology, Inc. (NASDAQ:VIR) is a clinical-stage biotechnology company. It develops antibody-based therapies designed to harness the immune system to treat infectious diseases and cancer. Its pipeline includes programs targeting chronic hepatitis delta, oncology therapies such as T-cell engagers for solid tumors, and early-stage efforts in HIV.
2. Zentalis Pharmaceuticals Inc (NASDAQ:ZNTL)
Number of Hedge Fund Holders: 22
Year-To-Date Performance: 271.85%
Market Capitalization: $356.07 million
Stock Upside: 64.34%
Zentalis Pharmaceuticals Inc (NASDAQ:ZNTL) is one of the must-buy small cap stocks to buy. On April 10, Jefferies raised its price target on Zentalis Pharmaceuticals Inc (NASDAQ:ZNTL) from $2.50 to $6.00 and left the Hold rating unchanged. This decision came after Zentalis said it had selected the optimal dose of its lead cancer drug azenosertib based on interim data from an ongoing clinical trial.
Zentalis announced in an April 9 press release that it had selected 400mg once daily on a five-days-on, two-days-off schedule as the optimal monotherapy dose of azenosertib for patients with Cyclin E1-positive platinum-resistant ovarian cancer. The company explained that this dose was arrived at after a prespecified interim data analysis from the DENALI Part 2a study.
Zentalis CEO Julie Eastland described the confirmation of azenosertib’s monotherapy dose as a pivotal milestone that puts the company firmly on track toward regulatory approval. She noted that the company is already moving beyond the clinical trials themselves. They are building out its commercial team, expanding manufacturing capacity, and developing the companion diagnostic needed to identify eligible patients.
With dose selection now confirmed, Jefferies is watching two near-term data points that could shift the story further. The first is Phase 2 efficacy data from the full DENALI trial, which Zentalis expects to share by year-end 2026. The second data point is the confirmatory Phase 3 study, ASPENOVA, which is on track to begin enrolling patients in Q2 2026.
Zentalis Pharmaceuticals Inc (NASDAQ:ZNTL) is a clinical-stage biotechnology company. It focuses on developing small-molecule therapies targeting key biological pathways in cancer. Its lead candidate is azenosertib, a WEE1 inhibitor currently in late-stage clinical development for ovarian cancer and other tumor types.
1. SunOpta, Inc. (NASDAQ:STKL)
Number of Hedge Fund Holders: 25
Year-To-Date Performance: 75.02%
Market Capitalization: $770.97 million
Stock Upside: 23.08%
SunOpta, Inc. (NASDAQ:STKL) is one of the must-buy small cap stocks to buy. On April 10, SunOpta, Inc. (NASDAQ:STKL) announced that the US Federal Trade Commission had granted early termination of the waiting period under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976. The move allowed the company to clear a key regulatory hurdle in its proposed acquisition by Refresco Holding B.V.
The HSR clearance satisfies one of the required conditions for the deal to close, but the transaction is not yet complete. It still needs approval from SunOpta’s shareholders, a final order from the Ontario Superior Court of Justice, and clearance under any other applicable antitrust laws.
The acquisition itself became public on February 6, when Refresco had agreed to buy all outstanding shares of SunOpta for $6.50 per share in cash. This deal valued the Eden Prairie, Minnesota-based company at approximately $1.1 billion. Both companies’ boards unanimously approved the deal at the time.
On its part, Refresco said it wanted to acquire SunOpta to expand its plant-based beverages capabilities and strengthen its footprint in North America. The company is a global beverage solutions provider based in the Netherlands and is majority-owned by private equity firm KKR.
SunOpta expects the transaction to close in Q2 2026. In the meantime, the company has suspended its quarterly earnings calls and will not provide financial guidance for the duration of the pending deal.
SunOpta, Inc. (NASDAQ:STKL) is a consumer staples company. It manufactures and sells plant-based and fruit-based food and beverage products, including oat, almond, soy, and coconut-based drinks, as well as broths, teas, and fruit snacks.
While we acknowledge the potential of STKL 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 STKL and that has 100x upside potential, check out our report about the cheapest AI stock.
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