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Small-Cap Stocks Reverse Broad Market Trend in Q1 2026: 5 Top Picks
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Key Takeaways
Russell 2000 gains 0.6% in Q1 2026, beating major indexes that declined sharply.
MG, SCHL, NWPX, SHIP and ULH deliver 20% returns with rising earnings estimates.
SCHL and ULH stand out with strong growth forecasts and sharp upward estimate revisions.
Wall Street is facing hurdles in 2026 after an astonishing bull run for three consecutive years. U.S. stock markets faced extreme volatility in the first quarter of 2026. As a result, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — tumbled 3.6%, 4.6% and 7%, respectively. Surprisingly, the small-cap stocks (market capital <$1 billion) reversed the trend during this period. The small-cap-centric Russell 2000 Index provided 0.6% returns in the first quarter. Another benchmark — the S&P 600 — provided even better 3.1% returns.
At this stage, it should be prudent to invest in small-cap stocks with a favorable Zacks Rank. Five such stocks that flourished the last quarter with more than 20% returns are: Mistras Group Inc. (MG - Free Report) , Scholastic Corp. (SCHL - Free Report) , NWPX Infrastructure Inc. (NWPX - Free Report) , Seanergy Maritime Holdings Corp. (SHIP - Free Report) and Universal Logistics Holdings Inc. (ULH - Free Report) .
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Mistras Group Inc.
Mistras Group is a global provider of technology-enabled, non-destructive testing (NDT) solutions used to evaluate the structural integrity of critical energy, industrial and public infrastructure. MG delivers a portfolio of solutions, ranging from routine NDT inspections to plant-wide asset integrity assessment and management solutions.
MG serves a global customer base, including companies in the oil and gas, fossil and nuclear power generation and transmission, public infrastructure, chemicals, aerospace and defense, transportation, primary metals and metalworking, pharmaceuticals and food processing industries.
Mistras Group has an expected revenue and earnings growth rate of 2.5% and 19.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.1% over the last 30 days.
Scholastic Corp.
Scholastic is the world's largest publisher and distributor of children's books and a leader in educational technology and children's media. SCHL creates quality educational and entertaining materials and products for use in school and at home, including children's books, magazines, technology-based products, teacher materials, television programming, film, videos and toys.
SCHL distributes its products and services through a variety of channels, including proprietary school-based book clubs and school-based book fairs, retail stores, schools, libraries & television networks. SCHL distributes its products and services directly to schools and libraries through retail stores and the Internet.
Scholastic has an expected revenue and earnings growth rate of 4% and 48.9%, respectively, for the next year (ending May 2027). The Zacks Consensus Estimate for the next year’s earnings has improved 60.9% over the last 30 days.
NWPX Infrastructure Inc.
NWPX Infrastructure is a manufacturer of water-related infrastructure products in the United States and Canada. NWPX is the manufacturer of engineered water transmission systems principally in North America and produces steel casing pipe, bar-wrapped concrete cylinder pipe and pipeline system joints and fittings through its Engineered Steel Pressure Pipe business.
NWPX operates through two segments, Water Transmission Systems (WTS), and Precast Infrastructure and Engineered Systems (Precast). The company provides its products under the NWPX Geneva and NWPX Park brand names and manufactures engineered water transmission systems and produces steel casing pipe, bar-wrapped concrete cylinder pipe, and pipeline system joints and fittings under the Northwest Pipe Company brand.
NWPX Infrastructure has an expected revenue and earnings growth rate of 4.9% and 18.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 11% over the last 60 days.
Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings is a prominent pure-play Capesize ship-owner, providing marine dry bulk transportation services through a modern fleet of Capesize vessels. SHIP’s operating fleet consists of 18 Capesize and 2 Newcastlemax dry bulk vessels.
SHIP has an expected revenue and earnings growth rate of 15.7% and 53.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 4.8% over the last 30 days.
Universal Logistics Holdings Inc.
Universal Logistics Holdings is a provider of customized transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. ULH offers services across its entire supply chain, including truckload, brokerage, intermodal, dedicated and value-added services.
ULH operates through three segments: Contract Logistics, Intermodal, and Trucking. ULH is also involved in brokerage activities, as well as the provision of support services. ULH serves the automotive, retail and consumer goods, metals, and energy and manufacturing industries.
Universal Logistics has an expected revenue and earnings growth rate of 3% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 10.9% over the last 30 days.
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Small-Cap Stocks Reverse Broad Market Trend in Q1 2026: 5 Top Picks
Key Takeaways
Wall Street is facing hurdles in 2026 after an astonishing bull run for three consecutive years. U.S. stock markets faced extreme volatility in the first quarter of 2026. As a result, the three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — tumbled 3.6%, 4.6% and 7%, respectively.
Surprisingly, the small-cap stocks (market capital <$1 billion) reversed the trend during this period. The small-cap-centric Russell 2000 Index provided 0.6% returns in the first quarter. Another benchmark — the S&P 600 — provided even better 3.1% returns.
At this stage, it should be prudent to invest in small-cap stocks with a favorable Zacks Rank. Five such stocks that flourished the last quarter with more than 20% returns are: Mistras Group Inc. (MG - Free Report) , Scholastic Corp. (SCHL - Free Report) , NWPX Infrastructure Inc. (NWPX - Free Report) , Seanergy Maritime Holdings Corp. (SHIP - Free Report) and Universal Logistics Holdings Inc. (ULH - Free Report) .
Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The chart below shows the price performance of our five picks year to date.
Image Source: Zacks Investment Research
Mistras Group Inc.
Mistras Group is a global provider of technology-enabled, non-destructive testing (NDT) solutions used to evaluate the structural integrity of critical energy, industrial and public infrastructure. MG delivers a portfolio of solutions, ranging from routine NDT inspections to plant-wide asset integrity assessment and management solutions.
MG serves a global customer base, including companies in the oil and gas, fossil and nuclear power generation and transmission, public infrastructure, chemicals, aerospace and defense, transportation, primary metals and metalworking, pharmaceuticals and food processing industries.
Mistras Group has an expected revenue and earnings growth rate of 2.5% and 19.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 6.1% over the last 30 days.
Scholastic Corp.
Scholastic is the world's largest publisher and distributor of children's books and a leader in educational technology and children's media. SCHL creates quality educational and entertaining materials and products for use in school and at home, including children's books, magazines, technology-based products, teacher materials, television programming, film, videos and toys.
SCHL distributes its products and services through a variety of channels, including proprietary school-based book clubs and school-based book fairs, retail stores, schools, libraries & television networks. SCHL distributes its products and services directly to schools and libraries through retail stores and the Internet.
Scholastic has an expected revenue and earnings growth rate of 4% and 48.9%, respectively, for the next year (ending May 2027). The Zacks Consensus Estimate for the next year’s earnings has improved 60.9% over the last 30 days.
NWPX Infrastructure Inc.
NWPX Infrastructure is a manufacturer of water-related infrastructure products in the United States and Canada. NWPX is the manufacturer of engineered water transmission systems principally in North America and produces steel casing pipe, bar-wrapped concrete cylinder pipe and pipeline system joints and fittings through its Engineered Steel Pressure Pipe business.
NWPX operates through two segments, Water Transmission Systems (WTS), and Precast Infrastructure and Engineered Systems (Precast). The company provides its products under the NWPX Geneva and NWPX Park brand names and manufactures engineered water transmission systems and produces steel casing pipe, bar-wrapped concrete cylinder pipe, and pipeline system joints and fittings under the Northwest Pipe Company brand.
NWPX Infrastructure has an expected revenue and earnings growth rate of 4.9% and 18.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 11% over the last 60 days.
Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings is a prominent pure-play Capesize ship-owner, providing marine dry bulk transportation services through a modern fleet of Capesize vessels. SHIP’s operating fleet consists of 18 Capesize and 2 Newcastlemax dry bulk vessels.
SHIP has an expected revenue and earnings growth rate of 15.7% and 53.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 4.8% over the last 30 days.
Universal Logistics Holdings Inc.
Universal Logistics Holdings is a provider of customized transportation and logistics solutions in the United States, Mexico, Canada, and Colombia. ULH offers services across its entire supply chain, including truckload, brokerage, intermodal, dedicated and value-added services.
ULH operates through three segments: Contract Logistics, Intermodal, and Trucking. ULH is also involved in brokerage activities, as well as the provision of support services. ULH serves the automotive, retail and consumer goods, metals, and energy and manufacturing industries.
Universal Logistics has an expected revenue and earnings growth rate of 3% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 10.9% over the last 30 days.