In this article, we’ll look at the 8 Best Small-Cap Value Stocks to Buy According to Analysts.
Over the past 12 months, the small-cap focused Russell 2000 Index has climbed more than 21%. That overshadows the S&P 500’s 14% gain over that timeframe.
On March 25, Jill Carey Hall, the head of US small and mid-cap strategy at B&A Securities, appeared on CNBC television to discuss the performance of the sector. Hall said that they expect small and mid-cap stocks to outperform the megacaps this year.
According to Hall, the way investors should look at the current geopolitical issues is how they impact the story for profit growth, inflation, and Fed rates. While acknowledging that the small-cap index is more sensitive to Fed rate movements, Hall said they think rate hikes are far away out.
On rising oil prices, she pointed out that small-caps do have more exposure to sectors that are beneficiaries of higher oil prices than sectors that are currently consumers. Nevertheless, Hall urged investors to be selective when picking small-cap stocks. She believes value stocks look better positioned in the current backdrop, noting that small-cap value stocks do better in stagflation environments.
With that in mind, let’s take a look at the 8 best small-cap value stocks to buy according to analysts.
Our Methodology
To compile our list of the 8 Best Small-Cap Value Stocks to Buy According to Analysts, we used financial media sources, including CNN and Bloomberg, as well as online rankings and the Finviz stock screener to build an initial pool of candidates. From this pool, we filtered for stocks with a market capitalization between $300 million and $2 billion as of March 29, 2026, a forward P/E ratio of less than 15, a dividend yield of more than 2%, and an analyst consensus upside potential of more than 30%. We also considered institutional interest in each stock using hedge fund holdings data from Insider Monkey’s 13F database, as of Q4 2025. The final list is ranked in ascending order based on analyst upside potential.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
Best Small-Cap Value Stocks to Buy According to Analysts
8. Century Communities Inc (NYSE:CCS)
Market Cap: $1.61 billion
Dividend Yield: 2.15%
Forward P/E: 7.78%
Analysts upside: 29.80%
Number of Hedge Fund Holders: 24
Century Communities Inc (NYSE:CCS) is among the best small-cap value stocks to buy according to analysts. On March 10, the homebuilder Century Communities Inc (NYSE:CCS) announced that it has acquired a Denver site for a luxury apartment project.
Century Communities acquired this site through its multi-family division, Century Living. The site is located in Denver’s LoHi neighborhood, providing walking distance access to amenities like shops, restaurants, and parks. Additionally, the neighborhood provides quick access to Union Station and I-25.
The project features a five-story building with 116 apartment units. The property will include amenities such as resident lounges, a fitness center, a pool, and a sun deck. It will also have parking spaces both in the first-level garage and underground. The units are expected to be ready for leasing in 2028. For this project, Century Living serves as both the developer and general contractor.
Century Communities Inc (NYSE:CCS) delivered blowout Q4 2025 earnings and went on to boost its quarterly dividend. It posted EPS of $1.59, surpassing the forecast of $1.35, and revenue of $1.23 billion exceeded the anticipated $1.06 billion.
The management said the quarter was supported by strong orders and deliveries, attributing this to continued demand for affordable new homes even in a challenging economic environment.
Century Communities closed 2025 in a strong financial position, revealing $1.1 billion of total liquidity, which included $158.0 million of cash. The company went on to raise its quarterly dividend to $0.32 per share from $0.29 previously.
Colorado-based Century Communities Inc (NYSE:CCS) is one of America’s largest homebuilding companies. It operates through Century Communities and Century Complete brands, handling all aspects of homebuilding from acquisition to development of land and property marketing. The company has footprints in 45 markets across 16 states in the US.
7. Manpower Inc (NYSE:MAN)
Market Cap: $1.32 billion
Dividend Yield: 5.07%
Forward P/E: 5.74%
Analysts upside: 36.69%
Number of Hedge Fund Holders: 37
Manpower Inc (NYSE:MAN) is among the best small-cap value stocks to buy according to analysts. On March 18, Goldman Sachs upgraded Manpower Inc (NYSE:MAN) stock to Neutral from Sell and set a price target of $30. According to Goldman, the revenue headwinds that have weighed on Manpower for years have stabilized. Consequently, the downside risk on the stock has subsided, the firm notes.
In Europe, Manpower primarily serves clients in the industrial and manufacturing sectors, offering temporary staffing services. The equity research firm sees bright prospects for Manpower as industrial activities in Europe have improved recently. France, in particular, has seen temporary staffing headcount stabilize after years of contraction. Manpower has around 25% revenue exposure to the French market.
Goldman Sachs also notes that Manpower is less exposed to AI risks, considering that it focuses more on industrial staffing needs than white-collar recruitments. Still, Manpower has recently spoken about strong demand for specialized tech skills in the US and internationally.
In Q4 2025, Manpower reported a 7% YoY increase in revenue to $4.7 billion. The company reported ongoing stabilization in North America and Europe, citing marked improvements in France and Italy. The quarter was also supported by strength in the company’s namesake Manpower segment as well as improvements in the Experis and Talent Solutions units. The company exited 2025 with $871 million of cash and cash equivalents.
Manpower Inc (NYSE:MAN) is an American multinational workforce solutions provider. It operates through the namesake Manpower, Experis, and Talent Solutions brands. The company offers a broad array of staffing services, including recruitment services, workforce consulting services, and outsourcing services. Manpower was founded in 1948 and is based in Milwaukee, Wisconsin.
6. La-Z-Boy Inc (NYSE:LZB)
Market Cap: $1.31 billion
Dividend Yield: 3.03%
Forward P/E: 10.73%
Analysts upside: 39.32%
Number of Hedge Fund Holders: 21
La-Z-Boy Inc (NYSE:LZB) is among the best small-cap value stocks to buy according to analysts. La-Z-Boy Inc (NYSE:LZB) team led by the CEO Melinda Whittington presented at the 47th Annual Raymond James Institutional Investor Conference on March 2. The team used the platform to highlight the company’s strategic shifts, growth opportunities, and industry challenges.
On strategy, the team outlined La-Z-Boy’s shift toward a consumer-first business model. As part of this shift, the company plans to expand its retail network to 450 stores across the US and Canada. La-Z-Boy last reported having a retail network of 375 stores, including 16 new locations opened in the past year. The company also acquired 15 retail locations in the Southeast region. La-Z-Boy says new stores break even in their first year and start contributing to earnings in the third year.
Notably, the shift to the consumer-first strategy comes as La-Z-Boy makes more of its sales through the direct-to-consumer (DTC) channels. The company says DTC sales now make up 50% of its revenue, up from 25% a decade ago.
Looking ahead, La-Z-Boy aims to grow its sales at twice the market rate. Moreover, the company targets double-digit operating margins. The company says brand revitalization and distribution transformation will help it improve profitability and market share.
For its fiscal Q3 2026, which ended in January, La-Z-Boy posted adjusted EPS of $0.61, which exceeded the anticipated $0.59. Revenue increased 4% YoY to $542 million and surpassed the consensus forecast of $535.47 million. La-Z-Boy closed the quarter with $306.1 million in cash.
For fiscal Q2, the company guided revenue in the band of $560 million to 580 million. Analysts projected revenue of $590.2 million for that quarter. According to La-Z-Boy’s management, this guidance reflects a cautious view on macroeconomics.
La-Z-Boy Inc (NYSE:LZB) is an American furniture manufacturer headquartered in Monroe, Michigan. It makes a variety of home furniture, including sofas, upholstered recliners, stationary chairs, and lift chairs. The company operates through wholesale and retail channels and sells its products in the US and Canada.
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