Best Small-Cap Stocks to Buy Now for August 2026

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Best Small-Cap Stocks to Buy Now for August 2026

Kevin Voigt

SHIPFETAMCXPRAAHIPO

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Key Takeaways

  • Small-cap stocks have staged a rebound this year, thanks to lower interest rates and a strong economy.
  • Small-cap stocks are typically more volatile with greater risk, but also greater potential for growth.
  • Top small-cap stocks this week include Seanergy Maritime, PRA Group and Hippo Holdings.

Small-cap stocks can add torque to a diversified portfolio — if you can stomach bumps along the way. They’ve lagged for much of the past cycle and trade at a notable discount to large caps, offering upside potential as earnings inflect and economic conditions evolve.

These companies, typically $300 million to $2 billion in market value, aren’t household names, but often have more runway to capture share, expand margin, and surprise on earnings.

The trade-off is real. Smaller companies typically face greater volatility, thinner liquidity and less financial flexibility, leaving them more sensitive to macro headwinds. Careful selection matters, emphasizing durable business models, improving fundamentals and credible capital discipline.

Historically, periods of stabilizing inflation and easing financial conditions have aided small caps by lowering financing costs and boosting risk appetite. We target companies showing positive estimate revisions and healthy Style Scores — signs that earnings outlook and sentiment are turning. Here are our top small-cap picks:

5 Best Small-Cap Stocks to Buy Today

Company (Ticker)12 Week Price ChangeForward PEPriceProj EPS Growth (1 Year)Projected Sales Growth (1Y)Research
Seanergy Maritime Holdings (SHIP)12.90%4.90$17.50178.91%27.75%
Forum Energy Technologies (FET)54.16%19.63$77.42526.19%12.16%
AMC Global Media Inc. (AMCX)27.47%4.48$12.3936.33%4.97%
PRA Group (PRAA)28.31%4.98$19.58113.59%12.22%Free Research Report: PRAA
Hippo Holdings (HIPO)28.02%13.49$33.12261.03%24.17%

*Updated on August 23, 2026.

Seanergy Maritime Holdings (SHIP)

$17.50 USD +0.58 (3.43%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for SHIP

Premium Research for SHIP

Zacks Rank

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.

Zacks Rank Definition Annualized Return
1Strong Buy23.80%
2Buy18.13%
3Hold10.19%
4Sell5.73%
5Strong Sell3.17%
S&P50011.53%

Zacks Rank Education - Learn about the Zacks Rank

Zacks Rank Home - Zacks Rank resources in one place

Zacks Premium - The only way to fully access the Zacks Rank

Trending upward Strong Buy 1
Zacks Industry Rank

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank

Top 15% (37 out of 247)
Zacks Sector Rank

The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.

A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

Zacks Sector Rank Education - Learn more about the Zacks Sector Rank

The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank

Top 13% (2 out of 16)
Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

  • Value Score A
  • Growth Score A
  • Momentum Score A
  • VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value B Growth C Momentum A VGM

Earnings ESP

Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.

The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.

Visit the Earnings ESP Center

See the Full List of Stocks To Beat Earnings

0.00%
  • Market Cap:$355.34 M
  • Projected EPS Growth:178.91%
  • Last Quarter EPS Growth:141.18%
  • Last EPS Surprise:23.36%
  • Next EPS Report Date:Nov. 12, 2026

Our Take:

Reasons to Buy

Seanergy Maritime is a Nasdaq-listed pure-play Capesize shipping company with a $355.34 million market cap. Looking ahead, six scrubber-fitted newbuildings scheduled for 2027-2029 should modernize capacity, while secured funding supports execution. Management aims to maintain full charter coverage with tier-one counterparties, and constrained Capesize supply plus expected iron-ore ton-mile growth could further support more favorable sector fundamentals over time.

Potential Risks

Key risks include swings in charter rates and vessel values, liquidity and debt-service pressure, competitive conditions, acquisition, capital spending, and operations outside the United States.

Forecast

A Zacks Rank #1 (Strong Buy), Value A and Growth B indicate favorable revisions and fundamentals, though Momentum C is less emphatic. The Price, Consensus & EPS Surprise chart shows a powerful 2026 share-price advance, sharply rising 2026 EPS estimates and a long run of positive surprises. The 2027 estimates are choppier, underscoring shipping cyclicality.

Free Research Report: SHIP

Forum Energy Technologies (FET)

$77.42 USD -1.18 (-1.50%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for FET

Premium Research for FET

Zacks Rank

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.

Zacks Rank Definition Annualized Return
1Strong Buy23.80%
2Buy18.13%
3Hold10.19%
4Sell5.73%
5Strong Sell3.17%
S&P50011.53%

Zacks Rank Education - Learn about the Zacks Rank

Zacks Rank Home - Zacks Rank resources in one place

Zacks Premium - The only way to fully access the Zacks Rank

Trending upward Strong Buy 1
Zacks Industry Rank

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank

Top 30% (75 out of 247)
Zacks Sector Rank

The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.

A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

Zacks Sector Rank Education - Learn more about the Zacks Sector Rank

The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank

Bottom 38% (10 out of 16)
Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

  • Value Score A
  • Growth Score A
  • Momentum Score A
  • VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

C Value B Growth A Momentum B VGM

Earnings ESP

Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.

The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.

Visit the Earnings ESP Center

See the Full List of Stocks To Beat Earnings

0.00%
  • Market Cap:$927.93 M
  • Projected EPS Growth:526.98%
  • Last Quarter EPS Growth:146.81%
  • Last EPS Surprise:103.51%
  • Next EPS Report Date:Oct. 29, 2026

Our Take:

Reasons to Buy

Forum Energy Technologies, with a $927.93 million market cap, manufactures a broad range of drilling, completion, downhole, production and valve products for customers worldwide. Its “Beat the Market” strategy could expand share through targeted markets, product innovation, manufacturing expertise and geographic reach. By 2030, FET forecasts $1 billion to $1.6 billion in revenue and $100 million to $235 million in free cash flow, supported by operating leverage and capital-light economics.

Potential Risks

Global rig count is a key market driver. FET’s projections assume service-intensity gains continue at 7% annually, while actual forward-looking results may differ materially from stated company expectations.

Forecast

A Zacks Rank #1 with Momentum A and Growth B support the revision-and-price trend, while Value C is neutral. The chart shows a sharp 2026 stock breakout, substantial upward revisions to 2026-2027 EPS and recent positive surprises, suggesting estimates still have support if execution holds.

Free Research Report: FET

AMC Global Media Inc. (AMCX)

$12.39 USD +0.20 (1.64%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for AMCX

Premium Research for AMCX

Zacks Rank

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.

Zacks Rank Definition Annualized Return
1Strong Buy23.80%
2Buy18.13%
3Hold10.19%
4Sell5.73%
5Strong Sell3.17%
S&P50011.53%

Zacks Rank Education - Learn about the Zacks Rank

Zacks Rank Home - Zacks Rank resources in one place

Zacks Premium - The only way to fully access the Zacks Rank

Trending upward Strong Buy 1
Zacks Industry Rank

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank

Bottom 35% (160 out of 247)
Zacks Sector Rank

The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.

A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

Zacks Sector Rank Education - Learn more about the Zacks Sector Rank

The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank

Top 50% (8 out of 16)
Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

  • Value Score A
  • Growth Score A
  • Momentum Score A
  • VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value F Growth D Momentum D VGM

Earnings ESP

Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.

The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.

Visit the Earnings ESP Center

See the Full List of Stocks To Beat Earnings

0.00%
  • Market Cap:$492.53 M
  • Projected EPS Growth:36.45%
  • Last Quarter EPS Growth:-450.00%
  • Last EPS Surprise:-2,700.00%
  • Next EPS Report Date:Nov. 6, 2026

Our Take:

Reasons to Buy

AMC Global Media creates and distributes television and film content through streaming services, cable networks, and AMC Studios and has a $492.53 million market cap. Its five-year Netflix agreement covering The Walking Dead Universe is expected to generate meaningful future cash flows, while rights ultimately revert to AMC. Renewed distribution deals with partners, broader YouTube TV placement and higher full-year guidance could support monetization and financial flexibility.

Potential Risks

AMC Global Media carries $1.74 billion of total debt and a 4.1x leverage ratio, while basic-subscriber declines, lower ratings, marketplace pricing and delivery timing could pressure revenue visibility.

Forecast

A Zacks Rank #1 signals favorable estimate revisions, while Value A is compelling. Style Scores of F for Growth and C for Momentum keep the setup mixed. The chart shows shares recovering from multi-year lows and EPS estimates stabilizing after deep cuts, but recent surprises are mixed, including several misses, so execution remains crucial.

Free Research Report: AMCX

PRA Group (PRAA)

$19.58 USD +0.95 (5.10%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for PRAA

Premium Research for PRAA

Zacks Rank

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.

Zacks Rank Definition Annualized Return
1Strong Buy23.80%
2Buy18.13%
3Hold10.19%
4Sell5.73%
5Strong Sell3.17%
S&P50011.53%

Zacks Rank Education - Learn about the Zacks Rank

Zacks Rank Home - Zacks Rank resources in one place

Zacks Premium - The only way to fully access the Zacks Rank

Trending upward Strong Buy 1
Zacks Industry Rank

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank

Top 42% (103 out of 247)
Zacks Sector Rank

The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.

A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

Zacks Sector Rank Education - Learn more about the Zacks Sector Rank

The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank

Top 25% (4 out of 16)
Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

  • Value Score A
  • Growth Score A
  • Momentum Score A
  • VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

B Value D Growth B Momentum C VGM

Earnings ESP

Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.

The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.

Visit the Earnings ESP Center

See the Full List of Stocks To Beat Earnings

0.00%
  • Market Cap:$739.78 M
  • Projected EPS Growth:113.59%
  • Last Quarter EPS Growth:106.85%
  • Last EPS Surprise:190.38%
  • Next EPS Report Date:Nov. 2, 2026

Our Take:

Reasons to Buy

PRA Group is an investor in nonperforming loan portfolios, supported by diversified funding and disciplined capital allocation, and has a $739.78 million market cap. Its PRA 3.0 plan targets $1 to $1.3 billion of annual purchases, rising adjusted EBITDA, lower net leverage toward the mid-2x range and higher earnings. Continued IT modernization, AI-enabled solutions and operating-efficiency initiatives could strengthen returns and shareholder value over the next two to three years.

Potential Risks

Future execution remains exposed to market conditions and forecasting uncertainty, while capital deployment must satisfy return thresholds. Future share repurchases also depend on debt-covenant compliance and Board discretion.

Forecast

A Zacks Rank #1, Style Scores of B for Value and Momentum point to favorable revisions and valuation support, though Growth D is a restraint. The chart shows 2026-2027 EPS consensus moving higher, especially recently, with mostly positive recent surprises, while the share price remains subdued. That divergence could narrow if collections keep outperforming.

Free Research Report: PRAA

Hippo Holdings (HIPO)

$33.12 USD +0.43 (1.32%)

3-Year Stock Price Performance

3 Year Stock Price Performance Chart for HIPO

Premium Research for HIPO

Zacks Rank

This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.

Zacks Rank Definition Annualized Return
1Strong Buy23.80%
2Buy18.13%
3Hold10.19%
4Sell5.73%
5Strong Sell3.17%
S&P50011.53%

Zacks Rank Education - Learn about the Zacks Rank

Zacks Rank Home - Zacks Rank resources in one place

Zacks Premium - The only way to fully access the Zacks Rank

Trending upward Strong Buy 1
Zacks Industry Rank

The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank.

An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank

Top 38% (93 out of 247)
Zacks Sector Rank

The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank.

A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's.

Zacks Sector Rank Education - Learn more about the Zacks Sector Rank

The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%.

Zacks Rank Education -- Learn more about the Zacks Rank
Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank

Top 25% (4 out of 16)
Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

  • Value Score A
  • Growth Score A
  • Momentum Score A
  • VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

C Value D Growth B Momentum D VGM

Earnings ESP

Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season.

The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest.

Visit the Earnings ESP Center

See the Full List of Stocks To Beat Earnings

0.00%
  • Market Cap:$869.53 M
  • Projected EPS Growth:261.76%
  • Last Quarter EPS Growth:31.71%
  • Last EPS Surprise:276.19%
  • Next EPS Report Date:Nov. 4, 2026

Our Take:

Reasons to Buy

Hippo, with an $869.53 million market cap, is a technology-native insurance platform spanning owned and partner MGAs across a diversified carrier network. Management expects gross written premium to exceed $2.5 billion by 2028, supported by organic expansion, new programs, strategic partnerships, new-home distribution, and MGA growth beyond new homes. The company also targets $140 million in adjusted net income by 2028, strengthening its small-cap growth profile.

Potential Risks

Catastrophe exposure, underwriting mispricing, reinsurance availability or cost, regulatory changes, cybersecurity incidents, competitive pressure and execution across new markets could materially undermine Hippo’s growth and long-term profitability targets.

Forecast

A Zacks Rank #1 and Momentum A support the earnings-revision and price setup, but Value C and Growth D are less supportive. The chart shows consensus flipping from losses to sharply higher 2026-2027 profits and mostly positive recent surprises. The stock has recovered from its lows but still trails the magnitude of estimate improvement.

Free Research Report: HIPO

Methodology

The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter). 

Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.94% per year from January 1, 1988, through July 6, 2026.

For this list, only companies trading 100,000 shares or more daily and in the top 50% of industries were considered. All stocks had a Zacks Rank #1 rank at the time of selection. All information is current as of market open, Aug 19,  2026.

Guide to Best Small-Cap Stocks

What Are Small-Cap Stocks?

“Small-cap” refers to publicly traded companies whose market capitalisation falls below a certain threshold. The exact cutoff varies by region or index provider, but commonly in the U.S. small-caps are defined as roughly $300 million to $2 billion in market cap. 

Why Invest in Small-Cap Stocks

  • Growth potential: Because these companies are smaller, they have more runway to grow revenues, profits and market share.
     
  • Diversification: They often behave differently than large-cap stocks, so including them can enhance portfolio diversification.
     
  • Value opportunity: Many small-caps are currently trading at valuations below historical norms or relative to large caps — offering potential mispricing opportunities.
     

Small-Cap vs Mid-Cap vs Large-Cap Stocks

Small Cap:

  • Market capitalization of between $300 million to $2 billion (but designation can vary among indices).
     
  • Higher growth potential, but higher risk and less liquidity.
     
  • More volatile and more sensitive to economic and interest rate shifts.
     

Medium (Mid) Cap:

  • Market capitalization generally from $2 billion to $10 billion.
     
  • Balanced between growth and stability.
     
  • Fewer extremes than small caps, but possibly less upside.
     

Large Cap:

  • Market cap is usually over $10 billion.
     
  • Established companies, lower growth but more stability.

 

Benefits of Investing in Small-Cap Stocks

  • Potential for outsized returns if a small company scales successfully.
     
  • Greater market inefficiencies — less analyst coverage means more opportunity for undervalued gems.
     
  • Cyclical upside — when conditions improve (such as lower rates or economic recovery) small caps often lead the trend.
     

Risks and Challenges of Small-Cap Stocks

  • Higher volatility — More price swings, less predictable earnings.
     
  • Sensitivity to economic and interest rate cycles — Small cap companies often carry more floating rate debt, shorter maturities, and weaker financials. Small cap stocks are generally “more vulnerable” in elevated-interest rate environments.
     
  • Less liquidity and coverage — Small cap stocks may be harder to trade, with fewer analysts covering them and less public information
     
  • Greater capital risk — Many small-cap firms are still unprofitable; their future may be less certain.
     

Small-Cap ETFs vs Small-Cap Stocks

  • ETFs: Small-cap exchange traded funds provide instant diversification, lower company-specific risk, simpler to invest.
     
  • Individual stocks: Offer higher potential upside (and higher risk). You can benefit from picking a breakout company, but the odds of mis-steps are higher.
     
  • If you believe in the asset class broadly, a small-cap ETF may be a smarter choice; if you want to hand-pick potential winners and accept higher risk, then individual stocks might appeal.
     

How to Choose the Best Small-Cap Stocks

Look at factors like:

  • Business quality: Profitability (or path to profitability), return on invested capital, competitive advantage (often known as a ‘moat”).
     
  • Financial strength: Manageable debt, good cash flow and reasonable valuation.
     
  • Valuation: Since small caps are currently trading at depressed valuations relative to large caps, finding ones that are both good quality and cheap may give you an edge.
     
  • Sector and cycle fit: Because many small-caps are more cyclical, consider how economic or rate trends might affect them.
     
  • Liquidity and transparency: Ensure the company has sufficient trading volume and good public disclosure.
  • Time horizon: Small-cap investing often requires patience — these stocks may take time to execute and get recognised by the market.

How to Invest in Small-Cap Stocks

  • Decide your allocation: How much of your portfolio are you willing to place into higher-risk small caps?
     
  • Combined approach: Consider holding a small-cap ETF and a few hand-picked individual names for upside.
     
  • Use dollar-cost averaging to smooth entry over time (given the greater volatility of small cap stocks.)
     
  • Monitor macroeconomic variables: Interest rates, economic growth, inflation, liquidity — these matter for small caps.
     
  • Stay disciplined: Set stop-losses or position limits; avoid over-allocating to speculative names
     
  • Review your time horizon: Small caps typically work better when held for multiple years rather than trading in and out.
     

Tips for Building a Small-Cap Portfolio

  • Diversify across sectors to avoid concentration risk (such as spreading across small-cap healthcare, industrial, consumer stocks and so forth).
     
  • Blend quality and speculative: Have some “core” small-cap holdings with proven businesses plus some high-upside speculative names.
     
  • Watch weighting: Don’t let any one small-cap issue become too big a part of your portfolio.
     
  • Track valuations: Since small-cap valuations can re-rate, be ready to adjust when valuations seem stretched.
     
  • Stay updated on macro shifts: For example, rate cuts can help small-caps more than large caps. Medium term, that dynamic could drive performance.
     

Frequently Asked Questions About Small-Cap Stocks

How long should I hold small-cap stocks?

Because of their risk and growth nature,a time  horizon of 3-5 years or more is generally preferable. Short-term trading can be risky due to volatility and structural shifts.

Are small-cap stocks suitable for beginners?

They can be, but only if the investor understands the risks, is comfortable with volatility and uses appropriate position sizing. Beginners might start with ETFs or limit exposure rather than going heavy into speculative names.

What sectors do the best small-cap stocks usually come from?

Historically: industrials, consumer discretionary, healthcare/biotech, technology. Small caps tend to have more cyclical exposure compared to large caps.
Also note many small-caps fly under the radar.

Can small-cap stocks be dividend-paying?

Yes — though less commonly than large-caps. Many small-cap companies reinvest profits into growth rather than returning dividends. But some mature small-caps may pay dividends.

What is the historical performance of small-cap stocks?

  • Historically small-caps offered a “small-cap premium” over large-caps due to greater growth potential.
     
  • However, more recently this premium has eroded — for example, J.P. Morgan reports that the small-cap growth engine has diminished in recent years.
     
  • Still, some data suggests that when macro conditions shift (such as interest rate cuts and economic recovery), small caps tend to outperform large caps.
     

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