10 Best Small-Cap Value Stocks to Invest In Now

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4. Precigen, Inc. (NASDAQ:PGEN)

Forward P/E: 8.39

TTM Revenue Growth Rate: 1875.05%

Number of Hedge Fund Holders: 27

Precigen, Inc. is a commercial-stage biopharmaceutical company with a growth engine of Papzimeos, a treatment for patients with recurrent respiratory papillomatosis. Third quarter revenue was $72.9 million, up 37% sequentially, and launch-to-date product revenue is now approximately $151 million.

The commercial ramp is now resulting in consistent profitability. Precigen reported net income of $35.8 million, or $0.08 per diluted share, compared to approximately $20 million in the second quarter. The company also recorded positive cash flow, exceeding its previous target of reaching cash flow breakeven by the end of 2026.

Concentration remains the main risk. Papzimeos accounted for more than 98% of quarterly revenue, making earnings heavily dependent on one product’s patient adoption, reimbursement, and competitive positioning. A newly licensed competitor treatment adds another test just as Precigen has passed its initial launch phase.

Nonetheless, a second consecutive profitable quarter and earlier-than-expected positive cash flow reinforce the case that Papzimeos can support the business rather than only generate launch-period sales. That progress adds to the commercial data supporting Patient Capital’s Precigen thesis, which connected successful launch execution to the company’s previous capital raise.

3. Kaiser Aluminum Corporation (NASDAQ:KALU)

Forward P/E: 10.67

TTM Revenue Growth Rate: 40.43%

Number of Hedge Fund Holders: 31

Kaiser Aluminum Corporation manufactures semi-fabricated specialty aluminum products for aerospace, packaging, general engineering, and automotive applications. The company’s third-quarter conversion revenue increased 25% to $439 million, while shipments rose 11% to 300 million pounds as the expanded Trentwood plant came back online. Aerospace and high-strength conversion revenue climbed 31%. Moreover, nine-month adjusted EBITDA came in at $379 million against $222 million a year earlier, with Moody’s upgrading the company to Ba3.

Nonetheless, the quarter disappointed investors, and shares fell by nearly 23% as adjusted earnings per share of $1.89 fell short of the analyst expectations of $2.37. Adjusted EBITDA of $84 million fell by roughly 50% from the second quarter, with the margin falling to 19.1% from 38.1% as metal price tailwinds faded and higher metal costs and outages weighed on results. Management now anticipates results at the lower end of its range. These factors have shifted the focus to whether Kaiser’s operational improvements can sustain earnings if favorable market circumstances return, a test that also supports Riverwater Partners’ premise for remaining competitive even if Middle East aluminum capacity returns faster.

2. UroGen Pharma Ltd. (NASDAQ:URGN)

Forward P/E: 12.33

TTM Revenue Growth Rate: 100.27%

Number of Hedge Fund Holders: 34

UroGen Pharma Ltd. markets Jelmyto and Zusduri, mitomycin-based medicines for treating urothelial cancers. Figures released November 4 showed Zusduri’s third-quarter revenue soared 35% sequentially to $68.0 million and overall revenue grew to $89.0 million from $27.5 million in the prior year. The net loss narrowed to $1.5 million, or $0.03 a share, from $33.3 million, or $0.69 a share. Zusduri’s prescriber base jumped to 662 from 452 at June 30, with repeat prescribers accounting for about 50%, up from 45%.

The pipeline has also evolved. The FDA accepted UroGen’s application for UGN-103 and set a target decision date of June 14, 2027. A newly issued patent is anticipated to protect Zusduri and, if accepted, UGN-103 until July 2044.

However, Jelmyto revenue declined to $21.0 million from $25.7 million the previous year, reflecting a $1.5 million adverse adjustment relating to Medicare’s discarded-drug program. Management reduced Jelmyto’s full-year outlook to around $90 million from $97 million to $101 million, citing adjustments and competitive clinical-trial enrollment affecting patient starts. Cash and securities fell to $90.5 million from $108.0 million at June 30, while operational expenses are estimated to be toward the upper end of the $260 million to $270 million range per year. Zusduri’s expansion is bringing UroGen closer to profitability, but rising development costs raise the question of whether its commercial engine can pay its pipeline goals.

1. Sunrun Inc. (NASDAQ:RUN)

Forward P/E: 12.49

TTM Revenue Growth Rate: 63.23%

Number of Hedge Fund Holders: 40

Sunrun Inc. is the largest US residential solar and battery provider. Third-quarter revenue jumped by 52% to $1.10 billion, with net income of $153.2 million, or $0.56 per share. Customer agreements and incentives revenue climbed 13% to $553.5 million, indicating ongoing development in its recurring-revenue business. Operating cash flow reached $301 million, with cash generation of $6 million, or $56 million excluding $50 million in equipment safe-harbor investments.

The direct business has returned to growth, and management is looking for new revenue streams from distributed power plant programs, data centers, and grid-edge applications. These prospects could allow Sunrun to earn more from its installed customer base rather than depending solely on new installations. Shares rose about 7% in after-hours trading as investors welcomed the revenue beat.

The weak point was guidance. Sunrun expects around $200 million in full-year cash generation, excluding equipment safe-harbor investments, compared to its previous estimate of $200 million to $375 million. Management attributed the shift to increased interest rates and sales onboarding, which remained somewhat behind forecasts. In addition, the company expects $60 million to $70 million in net safe-harbor equipment investments for the year. The earnings beat leaves a crucial question unanswered: whether growing direct sales can overcome financing pressures and deliver sustainable cash generation, the issue at the heart of Insider Monkey’s look into Sunrun’s pre-earnings rally and the operational challenges beneath it.

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