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3 Small Cap Stocks for 2026

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Key Takeaways

  • Mark Zinski, Zacks Small Cap Analyst, brings three 3 small cap stocks for your 2026 short list.
  • Comstock Holding manages real estate in Northern Virginia.
  • C&F Financial and Bank of the James Financial Group are small cap Virginia banks.

Welcome to Episode #467 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.

This week, Tracey was joined by Mark Zinski, Zacks Small Cap Analyst, to talk about 3 small caps to keep on your short list for 2026.

Mark has been on the podcast previously and brought several AI stocks. This time, his stock picks are NOT in the AI Revolution, but they are in real estate and banking.

Is it time to invest outside of AI?

3 Small Cap Stocks for 2026

1. Comstock Holding Companies (CHCI - Free Report)

Comstock Holding Companies is an asset manager, developer and operator of mixed-use and transit-oriented properties in the Washington DC region. It has a market cap of $135 million. Comstock is not a REIT and doesn’t pay a dividend.

Comstock shares have been on a tear in 2025, gaining 64% year-to-date. But it’s still attractively priced with a price-to-book (P/B) ratio of just 2.4.

Should Comstock Holding be on your 2026 short list?

2. C&F Financial Corp. (CFFI - Free Report)

C&F Financial Corp. is the holding company for C&F Bank, which was founded in 1927 in Virginia. It has 31 banking offices and 5 commercial loan offices in Virginia. In July 2025, C&F Financial announced it was opening in Roanoke and would be expanding in Southwest Virginia.

C&F Financial has a market cap of $224 million. It does pay a dividend, currently yielding 2.7%.

Shares of C&F Financial Corp. are down 3.4% year-to-date. It remains attractively priced with a P/B ratio of just 0.9.

Should a small bank like C&F Financial Corp. be on your 2026 short list?

3. Bank of the James Financial Group (BOTJ - Free Report)

Bank of the James Financial Group is the holding company of the Bank of the James. It has a market cap of $80 million. Founded in 1999, Bank of the James Financial Group is a Central Virginia bank.

The Bank of the James pays a dividend, currently yielding 2.2%. Shares are up 12.2% year-to-date but The Bank of the James is still attractively priced. It trades with a P/B ratio of 1.2.

Should a small bank like the Bank of the James Financial Group be on your 2026 short list?

What Else Should You Know About Small Caps in 2026?

Tune into this week’s podcast to find out.

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