Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inbox Gmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscription Click this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
Just For You 5 Small-Cap Stocks to Watch in 2026 as Investors Rotate Out of Big TechAuthored by Chris Markoch. Publication Date: 12/22/2025. 
Quick Look - Small-cap stocks may outperform in 2026 as investors rotate away from mega-cap tech and seek undervalued growth opportunities.
- These five small-cap stocks offer exposure to industrials, semiconductors, energy infrastructure, AI security, and consumer brands.
- Analysts see double-digit upside and strong earnings growth potential across all five names.
The Russell 2000 is ending the year on a strong note. As of Dec. 18, the small-cap index is up about 11% year-to-date. That performance can make investors hesitant to chase gains, but small caps may still offer attractive opportunities heading into 2026. Many analysts expect 2026 to be a favorable year for small-cap stocks. Much of that optimism stems from investors seeking opportunities outside the overvalued tech trade, particularly the Magnificent 7 stocks that have driven the market higher. Small-cap stocks are widely seen as beneficiaries of that rotation. Bitcoin just dipped, and while most people are staring at the price, they're missing the real opportunity — this pullback could be the best setup all year for a simple, low-cost strategy that generates steady weekly income without buying crypto, opening an exchange account, or trading options. It uses a small position available in most brokerage accounts, and it's designed to deliver reliable Thursday payouts, even in volatile markets, making this moment especially important for income-focused investors. Watch my Bitcoin Income Briefing here Many small caps have been beaten down, which can create attractive buying opportunities. Here are five names investors may want to consider. Gorman-Rupp: A Dividend King With Industrial Upside The Gorman-Rupp Co. (NYSE: GRC) is a small-cap industrials play. The company designs, produces and distributes pumps and pumping systems across a range of commercial applications. GRC stock is up about 29% in 2025, reflecting steady year-over-year revenue and earnings growth. Analysts expect that momentum to accelerate in 2026, forecasting 13.6% earnings growth over the next 12 months. The consensus price target implies roughly 19% upside over the next year. The stock also pays a modest 1.57% dividend. While the yield is not high, Gorman-Rupp is a member of the exclusive group of Dividend Kings, having increased its dividend for 52 consecutive years. Ultra Clean: A Beaten-Down Semiconductor Supplier Poised for a Rebound Ultra Clean Holdings Inc. (NASDAQ: UCTT) supplies critical consumables and process tools to the semiconductor manufacturing industry. It effectively provides the "picks-and-shovels" for semiconductor makers. UCTT is down more than 29% in 2025, largely due to weaker-than-expected revenue and earnings. However, the stock has rallied about 12% over the 30 days ending Dec. 18, and a consensus price target of $33.33 implies roughly 30% upside. Analysts forecast 98% earnings growth over the next 12 months, suggesting the semiconductor supercycle may be far from over — a point that supports the bull case for UCTT. Select Water Solutions: A Permian Basin Water Play With Structural Tailwinds Select Water Solutions Inc. (NYSE: WTTR) is a water management provider at a time when water solutions are becoming increasingly important. WTTR's niche is serving the oil-and-gas industry, particularly in the Permian Basin. This sector stands to benefit from a structural shift toward full-scale water midstream solutions. Rising capital expenditures (CapEx) should drive revenue and earnings growth for Select Water Solutions. WTTR is down about 20.7% year-to-date, but investors who held the stock for five years are still up nearly 150%. Analysts forecast year-over-year earnings growth above 25%, and a consensus price target of $14 implies roughly 30% upside. Evolv Technologies: AI-Driven Security Meets Recurring Revenue Growth Evolv Technologies Inc. (NASDAQ: EVLV) develops AI-driven screening solutions for security checkpoints. Its flagship product, Evolv Express, integrates into existing checkpoints, enabling a frictionless experience where people can pass through without stopping or emptying pockets. EVLV stock is up more than 80% in 2025, and analysts see about 24% more upside. A key growth driver is the company's shift in business model. Evolv is moving from a distributor-based approach toward direct fulfillment, which should boost annual recurring revenue (ARR) that is already growing at roughly 25%. Wolverine World Wide: A Consumer Discretionary Turnaround Story Wolverine World Wide Inc. (NYSE: WWW) is a footwear maker operating in the beaten-up consumer discretionary sector. It owns brands such as Merrell, Saucony, Hush Puppies and Keds. Wolverine was recently named Company of the Year by Footwear News. The recognition reflected the strength of its Saucony brand, which focuses on performance running. The stock is down about 14% year-to-date, but it has risen more than 21% over the last 30 days. At one point this summer, WWW traded near three-year highs. Analysts see roughly 23% upside, supported by about 29% expected earnings growth.
|
Post a Comment
Post a Comment