10 Small-Cap Stocks to Buy According to Ken Fisher

Published June 30, 2022 at 10:50 am EDT Updated August 19, 2026 at 8:03 am EDT

In this article, we discuss 10 small-cap stocks to buy according to Ken Fisher.

Small-cap stocks are companies with a market capitalization of between $300 million and $2 billion. In a landmark study, Nobel laureate Eugene Fama and co-author Ken French examined the equity returns of small, mid, and large-cap companies from 1926 to 2018. They found that the annual return rate of small-cap companies was 1.9% greater than large-cap companies. However, the small-cap equities had a 30.8% risk factor compared to 17.9% with large-cap equities.

Kenneth Fisher is one of the world’s most refined and polished investment gurus. His investment management firm, Fisher Asset Management, has a diverse portfolio including small to large-cap growth and value stocks. Till the 1980s, small-cap value stocks didn’t fall into any investment category. Ken Fisher’s firm was one of the first investment management companies to offer small-cap value stocks to its clients. Fisher respects and values all types of companies, as he once said:

“Both cheap value stocks and more glamorous growth stocks can work well in a portfolio – if done right.”

Kenneth Lawrence Fisher is the son of Philip A. Fisher, a renowned stock investor. He followed in his father’s footsteps in joining the financial market. His firm began with a modest amount of $250 and reached a market value of $169.494 billion in the first quarter of 2022.

According to Fisher Asset Management’s Q1 2022 13F filings, Fisher made 99 new stock purchases and increased holdings in 442 of his previous stocks. Moreover, he sold out of 89 stocks and reduced holdings in 385 stocks.

While Ken Fisher owns prominent names like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Amazon.com, Inc. (NASDAQ:AMZN), in this article, we discuss some of the star small-cap companies in Fisher Asset Management’s portfolio.

10 Small-Cap Stocks to Buy According to Ken Fisher

Our Methodology

These stocks have been picked from Fisher Asset Management’s first-quarter 2022 13F portfolio. All of the stocks mentioned in the article have a market capitalization of less than $2 billion. The stocks are mentioned in ascending order, depending on their position in Fisher Asset Management’s portfolio.

For a better understanding of the readers, analyst estimates, ratings, earnings, as well as the latest news is mentioned for these stocks.

Small-Cap Stocks to Buy According to Ken Fisher

10. Veracyte, Inc. (NASDAQ:VCYT)

Fisher Asset Management’s Stake Value: $31.656 million

Percentage of Fisher Asset Management’s Portfolio: 0.01%

Market Cap as of June 16: $1.198 billion

Veracyte, Inc. (NASDAQ:VCYT) is a San Francisco-based biotechnology company that provides genomic diagnostic services and products. According to first-quarter 13F filings, Fisher Asset Management held 1.148 million company shares worth $31.656 million. Veracyte, Inc. covers 0.01% of the company’s portfolio. On June 10, Veracyte, Inc. CEO Marc Stapley bought 60,000 shares worth $979,800 at $16.33 per share. This brings Stapley’s total ownership value to approximately $2.6 million with 159,761 shares.

On May 4, Needham analyst Mike Matson Veracyte, Inc. maintained a Buy rating on the company shares after lowering the price target to $26 from $31. The analyst believes that the company has the potential to become one of the leading cancer diagnostic companies.

Veracyte, Inc., in addition to Apple Inc., Microsoft Corporation, and Amazon.com, Inc., is one of the most significant stocks to buy according to Ken Fisher.

Artisan Partners mentioned in its second-quarter 2021 investor letter. Veracyte, Inc.. Here is what it said:

“Among our bottom contributors (includes) Veracyte. Veracyte develops and markets molecular tests designed to minimize ambiguity in the treatment of patients with cancer. These tests can reduce unnecessary surgeries and help put cancer patients at ease when the decision is to “watch and wait.” Shares have been pressured amid a recent investment cycle (acquired Decipher and HalioDX) and a resurgence of the pandemic earlier this year weighing on testing volumes. In addition, the company’s founder and CEO recently announced she was moving to Executive Chair. Her replacement is the former CFO of Illumina, who is very knowledgeable in in-vitro diagnostics and played a critical role in Illumina’s international expansion efforts (which we expect him to pursue at Veracyte). We are maintaining our position as patients return to the clinic for testing and as management executes on its strong R&D pipeline, including the upcoming launch of a nasal swab lung cancer test. Longer-term, the company is well-positioned to expand internationally as it ports its growing menu of tests onto the recently acquired nCounter instrument.”

9. Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW)

Fisher Asset Management’s Stake Value: $32.54 million

Percentage of Fisher Asset Management’s Portfolio: 0.01%

Market Cap as of June 16: $1.78 billion

Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW) outsources aircraft and aviation operating services. The first-quarter 2022 earnings reports of the company show that Atlas Air Worldwide Holdings, Inc. outperformed the EPS estimates by $0.36 at $2.99.

In February 2022, Atlas Air Worldwide Holdings, Inc.’s board of directors approved a share repurchase program of up to $200 million. 1.2 million shares worth $100 million were repurchased in April under the accelerated share repurchase program. Moreover, the company used $115 million in pre-delivery payments for their new aircraft. Due to these decisions, Atlas Air Worldwide Holdings, Inc.’s cash and cash equivalents were at $740.9 million as of March 2022, compared to $921 million at the end of December 2021.

Out of the 912 hedge funds tracked by Insider Monkey, Atlas Air Worldwide Holdings, Inc. was part of 36 public hedge fund portfolios in the first quarter of 2022. In the previous quarter, 35 hedge funds had a stake in the company. Herbert Frazier’s Hill City Capital had the most significant stake in the company in Q1 2022, with 1.4 million shares worth $123.878 million.

Here is what Greenlight Capital had to say about Atlas Air Worldwide Holdings, Inc. in its second-quarter 2021 investor letter:

“Air Freight COVID caused a dramatic reduction in passenger aviation. Passenger planes often carry freight in their bellies. With planes grounded, capacity came out of the industry. At the same time, freight demand expanded both due to the recovering economy and growing eCommerce, which often emphasizes air shipments. While there has been some recovery in passenger aviation, airlines are emphasizing narrow-body planes, which carry less freight than wide-body planes. Compared to 2019, current air freight demand is about 10% higher, and capacity is about 10% lower. The result is that cargo rates have exploded.

Supply will be slow to come online. Some passenger planes are being converted to freighters, but conversion capacity for wide bodies is limited, and the aggregate impact of this will be modest. Meanwhile, air freight companies trade at tiny multiples of what investors assume to be peak profits. The implied cost of equity is quite high, which makes it difficult to justify adding assets. As a result, air freight companies are in no rush to order new planes; in any case, new orders would take several years to build. The result is rates and profits are likely to be higher than expected for quite some time.

We own Atlas Air Worldwide (AAWW), which is poised to benefit. It trades at around 5x this year’s consensus earnings estimates.”

8. Dynavax Technologies Corporation (NASDAQ:DVAX)

Fisher Asset Management’s Stake Value: $32.54 million

Percentage of Fisher Asset Management’s Portfolio: 0.01%

Market Cap as of June 16: $1.78 billion

Dynavax Technologies Corporation (NASDAQ:DVAX) is a biopharmaceutical company that focuses on developing and commercializing novel vaccines. In the last 12 months, the company’s stock has been up by 11.34%.

According to the Insider Monkey database, 22 hedge funds were bullish on Dynavax Technologies Corporation. The funds had a combined stake value of $191.398 million. Christopher Medlock James’ Partner Fund Management held the most significant stake with 3.8 million shares worth $41.25 million, making up 1.54% of the fund’s portfolio.

According to Zacks Investment Research, Dynavax Technologies Corporation expects to make $146.7 million in sales in the second quarter of 2022. In the same quarter of the previous year, the company posted $52.77 million in sales, which shows that it is expected to achieve a 178% YoY growth. Moreover, for 2022, Zacks estimates $653.1 million in sales for the whole year.

7. Vericel Corporation (NASDAQ:VCEL)

Fisher Asset Management’s Stake Value: $46.786 million

Percentage of Fisher Asset Management’s Portfolio: 0.02%

Market Cap as of June 16: $1.252 billion

Vericel Corporation (NASDAQ:VCEL) is a Massachusetts-based biopharmaceutical company. Fisher Asset Management was the most prominent name among hedge funds in the company’s profile in the first quarter of 2022. The fund owned shares worth $46.786 million of Vericel Corporation, representing 0.02% of the 13F portfolio.

In the first quarter of 2022, Vericel Corporation reported a revenue of $36.07 million, beating the analyst estimates of $34.31 million by 5.16%. However, the company reported a loss per share of $0.15, missing analyst estimates of a per share loss of $0.12.

6. Knowles Corporation (NYSE:KN)

Fisher Asset Management’s Stake Value: $51.779 million

Percentage of Fisher Asset Management’s Portfolio: 0.03%

Market Cap as of June 16: $1.575 billion

Knowles Corporation (NYSE:KN) is a supplier of micro-acoustic, audio processing, and precision device solutions for various markets. The company has locations in North America, Europe, and Asia. On April 28, the board of directors at Knowles Corporation announced a $150 million share repurchase program in the second quarter of 2022.

According to the first quarter 2022 earnings report, Knowles Corporation posted an EPS of $0.35, which is 15.3% above analyst consensus. The company exceeded the revenue estimates of $200.18 million by $1.22 million. In addition, the company reported $83.3 million in gross profit compared to $78 million in the same quarter of 2021.

The Insider Monkey database shows that 23 hedge funds were bullish on Knowles Corporation in the first quarter of 2022. Ariel Investments had the most significant stake in the company, with 2.78 million shares worth $59.9 million. The fund reduced its holding by 2% in the first quarter of 2022 compared to the previous quarter.

Apart from Apple Inc., Microsoft Corporation, and Amazon.com, Inc., Knowles Corporation is one of the notable stocks to invest in according to Ken Fisher.

Here is what Heartland Advisors had to say about Knowles Corporation in its fourth-quarter 2021 investor letter:

“Good to hear. The Fund’s Information Technology (IT) holdings posted a strong quarter and outperformed the benchmark average. Knowles Corp. (KN) is an example of the type of compelling opportunity we hold in the space. The company is a leading maker of microphones, speakers for cell phones and other electronics, and hearing aids. Earnings have recently come in higher than expected, and management upped their guidance led by growth in the company’s high-margin precision device segment. Additionally, the company announced it was redeeming convertible debt using cash it had on its balance sheet—clearing up an issue that had hung over the stock.

We view the recent strong quarter as a sign of positive things to come for Knowles. Despite the strong performance, shares of the business trade at just 8x estimated 2022 earnings before interest, taxes, depreciation, and amortization.”

5. BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX)

Fisher Asset Management’s Stake Value: $64.8 million

Percentage of Fisher Asset Management’s Portfolio: 0.03%

Market Cap as of June 16: $1.687 billion

The biotechnology company BioCryst Pharmaceuticals, Inc. (NASDAQ:BCRX) discovers novel, oral, and small-molecule medicines. On June 8, the company’s drug for the prevention of heterotopic ossification (HO) in patients with fibrodysplasia ossificans progressiva (FOP), BCX9250, was granted Fast Track designation by the U.S. Food and Drug Administration (FDA).

On May 5, Piper Sandler analyst Christopher Raymond maintained an Overweight rating on BioCryst Pharmaceuticals, Inc. after lowering his price target to $19 to $24.

Out of the 912 hedge funds tracked by Insider Monkey, BioCryst Pharmaceuticals, Inc. was a part of 25 portfolios in the first quarter of 2022. The funds had a total stake worth $458.5 million. In the previous quarter, 19 hedge funds were bullish on the company and had a combined stake value of $412.6 million.

4. Century Aluminum Company (NASDAQ:CENX)

Fisher Asset Management’s Stake Value: $66 million

Percentage of Fisher Asset Management’s Portfolio: 0.03%

Market Cap as of June 16: $921.9 million

Century Aluminum Company (NASDAQ:CENX) is America’s largest producer of primary aluminum. The company doesn’t produce aluminum from aluminum scrap. Instead, it extracts directly from the ore. In the first quarter of 2022, Ken Fisher increased his holding in the company by 5% and was the most significant stakeholder of the company, with a position worth $66 million.

Century Aluminum Company posted its first-quarter 2022 EPS of $0.59, outperforming the estimates by $0.26. The company lagged behind in the revenue estimates by $100,000 after reporting a revenue of $753.60 million.

On May 18, Century Aluminum Company was downgraded to Peer Perform from Outperform and the price target was reduced to $14 from $30 by Wolfe Research analyst Timna Tanners. In recent weeks, the analyst reported that a “sharply worse” power price outlook in the MISO region exceeds a positive aluminum view.

3. Winnebago Industries, Inc. (NYSE:WGO)

Fisher Asset Management’s Stake Value: $90.16 million

Percentage of Fisher Asset Management’s Portfolio: 0.05%

Market Cap as of June 16: $1.446 billion

Winnebago Industries, Inc. (NYSE:WGO) started as a producer of motor homes in 1958. In 2018, the company acquired Chris-Craft Corporation to expand into recreational motor boat manufacturing.

Winnebago Industries, Inc. is a dividend stock with a 1.56% yield and a P/E ratio of 4.51. Since 2004, the company has increased its quarterly dividend by 1 cent per share each year till 15th June 2021. On August 18, the next quarterly dividend was declared at $0.18, with an increase of 6 cents per share.

2. Yelp Inc. (NYSE:YELP)

Fisher Asset Management’s Stake Value: $101 million

Percentage of Fisher Asset Management’s Portfolio: 0.05%

Market Cap as of June 16: $1.96 billion

Yelp Inc. (NYSE:YELP) is one of Ken Fisher’s most significant small-cap stocks. With a market capitalization of $1.96 billion, the company is approximately $40 million shy of being a mid-cap stock. Fisher Asset Management decreased its activity in the company by 3% in the first quarter of 2022, yet it remains the most significant stakeholder of the company, with a stake worth $101 million.

Yelp Inc. missed the Q1 EPS estimates of $0.34 by a considerable margin as it posted an EPS of $0.14. However, the company surpassed its revenue estimates by $10.03 million after generating revenues of $276.63 million.

On May 10, Yelp Inc.’s price target was lowered from $42 to $37 with a Market Perform rating on the shares by BMO Capital analyst Daniel Salmon. In a research note, the analyst added that the company is performing well in executing the ad product roadmap and expanding its self-serve and multi-location businesses. However, its catalysts remain shifty and near-term investment continues.

1. Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX)

Fisher Asset Management’s Stake Value: $125.7 million

Percentage of Fisher Asset Management’s Portfolio: 0.07%

Market Cap as of June 16: $1.715 billion

Allscripts Healthcare Solutions, Inc. (NASDAQ:MDRX) provides practice management and electronic health record technology to health care providers. According to Allscripts Healthcare Solutions, Inc.’s first-quarter 2022 earnings reports, the diluted EPS of $0.17 shows a 183.33% YoY growth. The revenue of $142.67 million conveys a 6.75% YoY growth. Furthermore, the net income and net profit margin reflected a 152.37% and 136.28% YoY growth, respectively.

Allscripts Healthcare Solutions, Inc. had positive hedge fund sentiment in the first quarter of 2022. It was part of 31 hedge fund portfolios in the first quarter of 2022, compared to 21 in the previous quarter. Ken Fisher had the most significant stake in the company, with 5.58 million shares worth $125.7 million, making up 0.7% of the fund’s portfolio.

You can also peek at 10 Stocks to Buy Now According to Steve Ketchum’s Sound Point Capital and 10 Stocks to Buy in April According to Jim Cramer.

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