10 Small-Cap Stocks to Buy According to David Einhorn’s Greenlight Capital

In this article, we discuss the top 10 small-cap stocks to buy according to David Einhorn’s Greenlight Capital.

David Einhorn founded Greenlight Capital in 1996, and he is the portfolio manager for the hedge fund to date. Under his supervision and direction, a $1.49 billion portfolio is managed for investors, consisting of publicly traded American corporate debt offerings and equities. Greenlight Capital is known for managing a fund of funds, dealing in private equity, and real estate reinsurance services via its subsidiaries and affiliates. 

Einhorn graduated from Cornell University in 1991 with a Bachelor’s degree, and started his hedge fund in 1996. He is known for holding short positions in mid-cap equities, and in 2007, he famously shorted the Lehman Brothers stock, stating that the financial services firm had inconsistencies in its accounting records. The company eventually declared bankruptcy in 2008. 

According to the 13F filings from September this year, Einhorn’s Q3 portfolio is concentrated with investments in the transports, materials, information technology, industrials, and finance sectors, with a top ten holdings concentration of 73.81%. 

10 Small-Cap Stocks to Buy According to David Einhorn's Greenlight Capital

The most notable stocks from David Einhorn’s portfolio for the third quarter include Twitter, Inc. (NYSE:TWTR), Expedia Group, Inc. (NASDAQ:EXPE), Victoria’s Secret & Co. (NYSE:VSCO), and PLBY Group, Inc. (NASDAQ:PLBY), among others discussed in detail below.

Our Methodology 

We used the Q3 portfolio of David Einhorn’s Greenlight Capital to select his top 10 small-cap stock picks for the third quarter. The list was compiled according to the value of each holding in Einhorn’s investment portfolio. 

Companies with market capitalization ranging from $300 million to $2 billion were considered as small-cap stocks.

Small-Cap Stocks to Buy According to David Einhorn’s Greenlight Capital

10. FREYR Battery (NYSE:FREY)

Greenlight Capital’s Stake Value: $6,908,000

Percentage of Greenlight Capital’s 13F Portfolio: 0.46%

Number of Hedge Fund Holders: 20

Market Capitalization as of December 4: $1.124 billion

FREYR Battery (NYSE:FREY) is a Norwegian company offering environmentally friendly battery cells for energy storage, electric mobility, and marine applications. JPMorgan analyst Jose Asumendi on November 18 initiated coverage of FREYR Battery (NYSE:FREY) with a Neutral rating and a $14.70 price target, citing execution risk as the key factor for FREYR Battery (NYSE:FREY) over the next three years to deliver on its medium-term targets.

FREYR Battery (NYSE:FREY) is a new arrival in Einhorn’s Q3 portfolio, with Greenlight Capital holding 700,000 shares in FREYR Battery (NYSE:FREY), worth $6.9 million, representing 0.46% of the firm’s total investments. 

With a market cap of $1.12 billion, FREYR Battery (NYSE:FREY) is one of the best small-cap stocks in Einhorn’s portfolio. On November 15, FREYR Battery (NYSE:FREY) announced Q3 earnings, posting an EPS of -$0.42, missing estimates by -$0.33. 

At the end of the third quarter, 20 hedge funds in the Q3 database of Insider Monkey were bullish on FREYR Battery (NYSE:FREY), with total stakes worth $378 million. 

In addition to Twitter, Inc. (NYSE:TWTR), Expedia Group, Inc. (NASDAQ:EXPE), Victoria’s Secret & Co. (NYSE:VSCO), and PLBY Group, Inc. (NASDAQ:PLBY), FREYR Battery (NYSE:FREY) is a notable stock in David Einhorn’s Q3 portfolio. 

9. Gulfport Energy Corporation (NYSE:GPOR)

Greenlight Capital’s Stake Value: $8,718,000

Percentage of Greenlight Capital’s 13F Portfolio: 0.58%

Number of Hedge Fund Holders: 18

Market Capitalization as of December 4: $1.371 billion

Gulfport Energy Corporation (NYSE:GPOR), one of the largest producers of natural gas from Oklahoma, posted its Q3 earnings on November 2. EPS in the quarter totaled $3.50, missing estimates by -$0.35. The quarterly revenue equaled -$242.53 million, down 278% year-over-year, missing estimates by $526.53 million. 

David Einhorn reduced his position in Gulfport Energy Corporation (NYSE:GPOR) by 18% in the third quarter, holding 106,054 shares in the company, valued at $8.71 million. Gulfport Energy Corporation (NYSE:GPOR) accounts for 0.58% of Einhorn’s total Q3 investments. 

As part of his research on the energy sector, Truist analyst Neal Dingmann on October 7 raised the price target on Gulfport Energy Corporation (NYSE:GPOR) to $120 from $94 and kept a Buy rating on the shares.

18 hedge funds in the Q3 database of the 867 elite funds tracked by Insider Monkey reported owning stakes in Gulfport Energy Corporation (NYSE:GPOR), with Edward A. Mule’s Silver Point Capital being the largest stakeholder of the company, holding 8.2 million shares worth $674.78 million. 

Here is what Greenlight Capital has to say about Gulfport Energy Corporation (NYSE:GPOR) in its Q2 2021 investor letter:

“Thermal Coal and Natural Gas

ESG investing is inflationary, as green energy is simply more expensive than hydrocarbons. Hydrocarbon energy companies are starved for capital and are being told to change their ways. The result is less exploration and drilling. Even with benchmark oil prices surging over the last year, companies are loath to drill more. Normally, the cure for high prices is high prices. With ESG in the proverbial driver’s seat, we might need much higher prices still in order to increase investment to meet demand.

There is almost nothing less popular than thermal coal. From 2011 to 2020, U.S. coal production declined by 51%. U.S. demand has fallen as we’ve shifted to alternative sources of electricity. As unpopular as coal is though, it still makes up about 20% of U.S. electricity generation. Globally, coal demand is growing modestly as China and India add power generation capacity faster than the West is reducing it. Even so, reduced oil and gas drilling has caused natural gas prices to advance and coal prices are following. Seaborne thermal coal prices are up 140% year-over-year and at the highest levels since 2011, and Northern Appalachia thermal coal prices are catching up, rising 23% in the last month alone.

We also own Gulfport Energy (GPOR), an Appalachian natural gas driller that recently emerged from bankruptcy and is poised to benefit from higher natural gas prices. Currently, there are no analyst estimates for GPOR.”

8. PLBY Group, Inc. (NASDAQ:PLBY)

Greenlight Capital’s Stake Value: $9,664,000

Percentage of Greenlight Capital’s 13F Portfolio: 0.64%

Number of Hedge Fund Holders: 15

Market Capitalization as of December 4: $1.469 billion

PLBY Group, Inc. (NASDAQ:PLBY) is a lifestyle, wellness, and mass media company founded in 1953 by Hugh Hefner to manage the Playboy magazine and similar assets. Greenlight Capital owns 410,000 shares in PLBY Group, Inc. (NASDAQ:PLBY) as of Q3 2021, worth $9.66 million, accounting for 0.64% of the firm’s total investments. 

The leading stakeholder of PLBY Group, Inc. (NASDAQ:PLBY) from the third quarter is Michael Novogratz’s Fortress Investment Group, with 2.1 million shares worth $49.9 million. Overall, according to the Q3 database of Insider Monkey, a total of 15 hedge funds were bullish on PLBY Group, Inc. (NASDAQ:PLBY), down from 20 funds in the preceding quarter. 

PLBY Group, Inc. (NASDAQ:PLBY), on November 15, announced its Q3 results. EPS in the period equaled -$0.03, missing estimates by -$0.11. The $58.36 million quarterly revenue was up 66.71% from the preceding-year quarter, beating estimates by $693,000. 

On November 16, Loop Capital analyst Daniel Adam raised the price target on PLBY Group, Inc. (NASDAQ:PLBY) to $50 from $29 and kept a Buy rating on the shares after the company posted its Q3 results.

In addition to Twitter, Inc. (NYSE:TWTR), Expedia Group, Inc. (NASDAQ:EXPE), Victoria’s Secret & Co. (NYSE:VSCO), and PLBY Group, Inc. (NASDAQ:PLBY), PLBY Group, Inc. (NASDAQ:PLBY) is a notable stock in David Einhorn’s Q3 portfolio. 

Here is what Greystone Capital Management has to say about PLBY Group, Inc. (NASDAQ:PLBY) in their Q1 2021 investor letter:

“Mountain Crest Acquisition Corp. (MCAC) / Playboy Enterprises (PLBY)

During the quarter, we entered into a mid-sized position in Mountain Crest Acquisition Corp., a SPAC that during late last year inked a deal to merge with Playboy Enterprises (yes, that Playboy) and take the company public. The deal was consummated in February and shares now trade under the ticker symbol PLBY. In line with my occasional attempts to exploit investor biases, the stigma surrounding the Playboy brand especially as it relates to the legacy magazine business helped create the opportunity to purchase shares for what appears to be an incredibly favorable valuation. This is one situation where a SPAC IPO benefitted us greatly as I believe if Playboy underwent the traditional IPO process including roadshow and investment bank involvement, shares wouldn’t have been available anywhere near our initial purchase prices which consisted of an absurdly low EBITDA multiple following the deal close. (Click here to read full text)

7. NeuBase Therapeutics, Inc. (NASDAQ:NBSE)

Greenlight Capital’s Stake Value: $9,844,000

Percentage of Greenlight Capital’s 13F Portfolio: 0.66%

Number of Hedge Fund Holders: 10

Market Capitalization as of December 4: $88.008 million

With a market cap of $88 million, NeuBase Therapeutics, Inc. (NASDAQ:NBSE) is one of the top small-cap stock picks of David Einhorn from the third quarter. Einhorn, via Greenlight Capital, holds a $9.84 million position in NeuBase Therapeutics, Inc. (NASDAQ:NBSE), which accounts for 0.66% of his Q3 investment portfolio. 

NeuBase Therapeutics, Inc. (NASDAQ:NBSE) is a company using its advanced platform to rapidly develop targeted drugs for genetic diseases, aiming to prioritize genetic neurological disorders in the drug pipeline. 

Out of the 867 hedge funds monitored by Insider Monkey in the third quarter, 10 funds were long NeuBase Therapeutics, Inc. (NASDAQ:NBSE), with Steve Cohen’s Point72 Asset Management being one of the leading company stakeholders, owning 1.25 million shares worth $4.5 million. 

Here is what Greenlight Capital had to say about NeuBase Therapeutics, Inc. (NASDAQ:NBSE) in its Q4 2020 investor letter: 

“One already-public investment that we have never discussed is NeuBase Therapeutics (NBSE), which we invested in a couple years ago at an average price of $3.96. The combination of the frothy environment for companies with large addressable markets and NBSE’s own pre-clinical progress leaves us surprised that NBSE hasn’t yet joined the “story stock” party. NBSE is a “platform” company with a technology called PATrOL, which develops highly targeted therapies that increase, decrease or change the protein function of genes. By addressing all of the causal mechanisms underlying rare and common diseases – including cancer – PATrOL consolidates the capabilities of highly-valued gene silencing, gene editing and gene replacement companies in a single unified platform. NBSE’s emerging therapies also feature the best precision in engaging misbehaving genes of any technology, which is critical to eliminating “off-target” engagement with healthy genes elsewhere in the genome and to ensuring well-tolerated medicines. The company’s laboratory successes over the last couple years suggest that PATrOL could be a breakthrough technology that addresses many types of diseases. Like DNMR, the addressable market is immense. While there is a long path from here to products on the market, NBSE’s current market capitalization of less than $200 million prices in little chance of success. We think the risk-reward is asymmetrical. NBSE ended the year at $6.99.”

6. Jack in the Box Inc. (NASDAQ:JACK)

Greenlight Capital’s Stake Value: $14,483,000

Percentage of Greenlight Capital’s 13F Portfolio: 0.97%

Number of Hedge Fund Holders: 26

Market Capitalization as of December 4: $1.765 billion

Jack in the Box Inc. (NASDAQ:JACK), an American fast-food restaurant chain, posted its Q3 results on November 23. EPS in the quarter came in at $1.76, beating estimates by $0.02. The $278.45 million revenue gained 9.03% year-over-year, but missed estimates by $10.31 million. 

David Einhorn increased his stake in Jack in the Box Inc. (NASDAQ:JACK) by 7% in the third quarter, holding 148,800 shares in the company, worth $14.48 million. Jack in the Box Inc. (NASDAQ:JACK) stock represents 0.97% of Einhorn’s Q3 securities. 

Truist analyst Jake Bartlett lowered the price target on Jack in the Box Inc. (NASDAQ:JACK) to $130 from $142 but kept a Buy rating on the shares on November 24. The analyst stated that even though the company is impacted by cost and margin pressures, it is set to recover financially in the upcoming quarters. According to Bartlett, the lower price target presents a strong buying opportunity in Jack in the Box Inc. (NASDAQ:JACK). 

Alexander Mitchell’s Scopus Asset Management is the biggest Jack in the Box Inc. (NASDAQ:JACK) stakeholder from Q3, holding a $58.3 million position in the company. Overall, 26 hedge funds were long Jack in the Box Inc. (NASDAQ:JACK) in the third quarter, down from 29 funds in the previous quarter. 

In addition to Twitter, Inc. (NYSE:TWTR), Expedia Group, Inc. (NASDAQ:EXPE), Victoria’s Secret & Co. (NYSE:VSCO), and PLBY Group, Inc. (NASDAQ:PLBY), Jack in the Box Inc. (NASDAQ:JACK) is a notable stock in David Einhorn’s Q3 portfolio. 

5. GoPro, Inc. (NASDAQ:GPRO)

Greenlight Capital’s Stake Value: $34,303,000

Percentage of Greenlight Capital’s 13F Portfolio: 2.30%

Number of Hedge Fund Holders: 31

Market Capitalization as of December 4: $1.541 billion 

An American tech company manufacturing and marketing action cameras, video editing software, and mobile applications, GoPro, Inc. (NASDAQ:GPRO) is one of the top small-cap stocks in Einhorn’s portfolio for the third quarter. Greenlight Capital owns 3.66 million GoPro, Inc. (NASDAQ:GPRO) shares, worth $34.3 million, representing 2.3% of the firm’s total investments. 

At the end of September, 31 hedge funds reported owning stakes in GoPro, Inc. (NASDAQ:GPRO), worth over $293 million. This is compared to 28 funds being bullish on GoPro, Inc. (NASDAQ:GPRO) in the preceding quarter, with total stakes amounting to $413.7 million. Michael Zimmerman’s Prentice Capital Management is the largest shareholder of the company, with a position worth approximately $64 million. 

On November 4, GoPro, Inc. (NASDAQ:GPRO) reported its Q3 results, posting an EPS of $0.34, beating estimates by $0.14. The revenue equaled $316.67 million, up 12.89% from the prior-year quarter, outperforming estimates by $24.58 million. 

JPMorgan analyst Paul Chung on November 18 upgraded GoPro, Inc. (NASDAQ:GPRO) to Overweight from Neutral with a price target of $15, up from $13, citing price increases, strong strategic execution, and a high subscriber count.

Here is what Roubaix Capital has to say about GoPro, Inc. (NASDAQ:GPRO) in their Q4 2020 investor letter:

“Companies like GoPro (GPRO) should benefit from the consumer rebound, but also have their own unique drivers of value over the next 2+ years. In the case of GPRO, the company launched its newest action camera, the GoPro9, under the umbrella of a new business model. The company offers a discount on the camera when customers purchase a subscription agreement that comes with additional services and benefits. The uptake of the subscription has been strong to date and offers the company a line of sight to a higher margin and more predictable revenue stream. The stock’s low double digit earnings multiple remains undemanding. We have seen this type of transformation play out in numerous situations in software, hardware and even retail companies such as RH. We see GPRO following suit and expect a return to travel later this year to be another reason for consumers to buy a new camera as they head back out on vacation.”

4. Danimer Scientific, Inc. (NYSE:DNMR)

Greenlight Capital’s Stake Value: $38,532,000

Percentage of Greenlight Capital’s 13F Portfolio: 2.58%

Number of Hedge Fund Holders: 21

Market Capitalization as of December 4: $1.088 billion

David Einhorn increased his stake in Danimer Scientific, Inc. (NYSE:DNMR), a sustainable biopolymer manufacturer, by 12% in the third quarter. Einhorn holds 2.35 million shares in Danimer Scientific, Inc. (NYSE:DNMR), worth $38.5 million, representing 2.58% of his total Q3 securities. 

At the end of the third quarter of 2021, 21 hedge funds in the database of Insider Monkey were long Danimer Scientific, Inc. (NYSE:DNMR), down from 30 funds in the preceding quarter. 

Danimer Scientific, Inc. (NYSE:DNMR) posted its Q3 results on November 15. The EPS amounted to -$0.15, missing estimates by -$0.06. Revenue for the period totaled $13.37 million, missing analysts’ consensus revenue estimates by $1.20 million. 

After the Q3 earnings miss, Jefferies analyst Laurence Alexander on November 16 lowered the price target on Danimer Scientific to $30 from $34 and kept a Buy rating on the shares, stating that overall trends for the company appear to be on track. 

Here is what Nelson Capital Management has to say about Danimer Scientific, Inc. (NYSE:DNMR) in its Q1 2021 investor letter:

“In the materials sector, we bought Danimer Scientific (tkr: DNMR), a next-generation bioplastics company offering completely biodegradable plastics that break down in virtually any environment.

While essential to modern life, plastic products are an ongoing environmental concern due to their longevity and therefore the pollution that results. Despite nationwide efforts to recycle plastics, only 8.5% of plastics waste in t he U .S. is being recycled, according to a study by the U.S. Environmental Protection Agency. Danimer Scientific (t k r: DNMR) has developed a method to make plastic products that are 100% biodegradable and compostable without compromising on functionality. The company sells its PHA- based plastics under the brand name Nodax and is currently the only viable commercial-scale offering.

Danimer uses canola oil to create 100% biodegradable and compostable biopolymer, PHA, through a completely waste-free process. PH A biodegrades in both anaerobic (without oxygen) and aerobic (with oxygen) environments, and unlike other biodegradable plastics, it does not need heat, moisture, or an industrial composting plant to break down. PHA-based plastics can effectively biodegrade in a waste treatment facility, the ocean, or even in home compost piles within 12-18 weeks after the product is discarded.

PHA plastics are versatile, adaptable and heat and UV-resistant. They have been FDA approved for food contact and are comparable in functionality to many products produced using petrochemicals. The formula can be customized to create many types of plastic resins for a multitude of purposes. The range of applications for products made with PH A is enormous and includes straws, cups, lids, bottles, produce bags, shopping bags, utensils, diaper linings, plates, wipes, toys, trash bags, seals, labels, glues and much more.

Danimer went public in late 2020 via Special Purpose Acquisition Company (SPAC). As a newly public company, Danimer’s stock price tends to be rather volatile, but we bought a small position for the long-term opportunities it offers. Dem and for PHA plastics is likely to accelerate over the next several years as corporations and the public become increasingly concerned about the environmental impact of wrappers from consumer- packaged goods. More government regulation of single- use plastics has pressured large corporations to adapt. Additionally, the Biden administration has a strong emphasis on climate change and sustainability which will provide a near- to-mid-term tailwind for Danimer. As the leading PHA innovator with over 125 patents across 20 countries, Danimer is well-positioned to benefit from these trends.”

3. The ODP Corporation (NASDAQ:ODP)

Greenlight Capital’s Stake Value: $46,061,000

Percentage of Greenlight Capital’s 13F Portfolio: 3.08%

Number of Hedge Fund Holders: 21

Market Capitalization as of December 4: $1.909 billion

In the third quarter of 2021, David Einhorn increased his position in The ODP Corporation (NASDAQ:ODP) by 78%, owning 1.14 million shares in the company, worth $46 million. The ODP Corporation (NASDAQ:ODP) accounts for 3.08% of Einhorn’s Q3 13F portfolio. 

The ODP Corporation (NASDAQ:ODP), an office supply retailing company from Florida, posted on November 3 its Q3 earnings. EPS in the quarter equaled $1.76, beating estimates by $0.33. Revenue for the period amounted to $2.18 billion, down 14.18% year-over-year, missing estimates by $94.39 million. 

Of the 21 hedge funds that were bullish on The ODP Corporation (NASDAQ:ODP) in the third quarter, Parag Vora’s HG Vora Capital Management is the biggest stakeholder of the company, holding 5 million shares worth $200.8 million. 

2. CONSOL Energy Inc. (NYSE:CEIX)

Greenlight Capital’s Stake Value: $55,137,000

Percentage of Greenlight Capital’s 13F Portfolio: 3.69%

Number of Hedge Fund Holders: 15

Market Capitalization as of December 4: $745.462 million

CONSOL Energy Inc. (NYSE:CEIX), an American energy company focused on coal mining and natural gas, represents 3.69% of Greenlight Capital’s Q3 portfolio. The hedge fund holds 2.11 million shares in CONSOL Energy Inc. (NYSE:CEIX) as of September this year, worth $55.1 million. Einhorn reduced his stake in the company by 3% in Q3. 

On November 2, CONSOL Energy Inc. (NYSE:CEIX) announced its Q3 results, posting an EPS of -$0.14, missing estimates by -$0.78. The quarterly revenue totaled $149.01 million, down 38.73% from the prior-year quarter, missing estimates by $157.04 million. 

Riley analyst Lucas Pipes on October 4 raised the price target on CONSOL Energy Inc. (NYSE:CEIX) to $35 from $24 and kept a Buy rating on the shares, citing rising gas prices in the international markets. 

Todd J. Kantor’s Encompass Capital Advisors is one of the leading stakeholders of the company, with 568,581 shares worth $14.79 million. Overall, 15 hedge funds in the third quarter were bullish on CONSOL Energy Inc. (NYSE:CEIX), up from 13 funds in the prior quarter. 

Here is what Greenlight Capital has to say about CONSOL Energy Inc. (NYSE:CEIX) in its Q2 2021 investor letter:

“Thermal Coal and Natural Gas

ESG investing is inflationary, as green energy is simply more expensive than hydrocarbons. Hydrocarbon energy companies are starved for capital and are being told to change their ways. The result is less exploration and drilling. Even with benchmark oil prices surging over the last year, companies are loath to drill more. Normally, the cure for high prices is high prices. With ESG in the proverbial driver’s seat, we might need much higher prices still in order to increase investment to meet demand.

There is almost nothing less popular than thermal coal. From 2011 to 2020, U.S. coal production declined by 51%. U.S. demand has fallen as we’ve shifted to alternative sources of electricity. As unpopular as coal is though, it still makes up about 20% of U.S. electricity generation. Globally, coal demand is growing modestly as China and India add power generation capacity faster than the West is reducing it. Even so, reduced oil and gas drilling has caused natural gas prices to advance and coal prices are following. Seaborne thermal coal prices are up 140% year-over-year and at the highest levels since 2011, and Northern Appalachia thermal coal prices are catching up, rising 23% in the last month alone.

We own CONSOL Energy (CEIX), the lowest cost, most efficient miner in Appalachia, which is poised to benefit from rising coal prices. It trades at 12x consensus earnings estimates that look stale to us, as they do not reflect recent coal price gains.”

1. Green Brick Partners, Inc. (NASDAQ:GRBK)

Greenlight Capital’s Stake Value: $357,431,000

Percentage of Greenlight Capital’s 13F Portfolio: 23.96%

Number of Hedge Fund Holders: 16

Market Capitalization as of December 4: $1.394 billion

In addition to being a top small-cap stock in Greenlight Capital’s portfolio, Green Brick Partners, Inc. (NASDAQ:GRBK) is also the largest holding of the hedge fund from the third quarter. David Einhorn holds 17.4 million shares in Green Brick Partners, Inc. (NASDAQ:GRBK), worth $357.4 million, accounting for 23.96% of his total Q3 investments. 

Green Brick Partners, Inc. (NASDAQ:GRBK), a Texas-based homebuilding and land development company, posted its Q3 earnings on November 2. EPS for the quarter came in at $0.95, missing estimates by -$0.10. The revenue amounted to $342.34 million, up 24.12% year-over-year, but missing estimates by $26.02 million. 

Maintaining a constructive stance of the homebuilding sector on October 14, JPMorgan analyst Michael Rehaut downgraded Green Brick Partners, Inc. (NASDAQ:GRBK) to Neutral from Overweight with a price target of $28, down from $32.

Springbok Capital is one of the leading stakeholders of the company, with a $17.45 million stake in Green Brick Partners, Inc. (NASDAQ:GRBK) as of Q3 2021. Overall, 16 funds were long Green Brick Partners, Inc. (NASDAQ:GRBK) in the third quarter, with total stakes amounting to $392.3 million. 

Here is what Diamond Hill Small Cap Fund has to say about Green Brick Partners, Inc. (NASDAQ:GRBK) in its Q3 2021 investor letter:

“Homebuilder Green Brick Partners has benefited from strong housing demand leading to higher prices. However, rising interest rates, as we saw in Q3, tend to be an industry-wide headwind, just as supply chain challenges delayed home closings, pushing back revenue to later quarters. Longer term, our thesis on Green Brick remains unchanged. We believe it is one of the best positioned small-cap housing companies, with attractive real estate, a strong balance sheet and a strong, shareholder-aligned management team that has been a wise allocator of capital.”

You can also take a look at 11 Best Penny Stocks To Buy According To Hedge Funds and 10 Extreme Dividend Stocks With Upside Potential.

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Disclosure: None. 10 Small-Cap Stocks to Buy According to David Einhorn’s Greenlight Capital is originally published on Insider Monkey.