Freedom names 15 small-cap consumer cyclicals popular with hedge funds

Freedom Broker, at the request of Oninvest, has looked at which consumer-cyclicals small caps, with a market capitalization of $6 billion or less, were most popular among hedge funds in the fourth quarter of last year. Below are the names, along with information about their businesses and stock performance.

Primo Brands

Number of hedge funds holding shares: 123

Primo Brands describes itself as a leading producer of branded beverages in the North American market (U.S. and Canada), including Primo Water, Pure Life, and The Mountain Valley. In 2025, the company reported a 29.3% increase in net revenue to $6.7 billion, largely driven by its merger with BlueTriton Brands in November 2024. Net income from continuing operations totaled $80.4 million, compared with a net loss of $12.6 million a year earlier.

Year to date, Primo Brands shares are up about 15%. Eleven analysts recommend “buy,” while two rate the stock “hold.” The average target price of $26.83 per share implies 43% upside versus the Thursday close.

Dauch Corporation

Number of hedge funds holding shares: 101

The company supplies transmission components and metalworking products for all types of vehicles. In 2025, Dauch reported a 4.6% decline in revenue to $5.84 billion and a net loss of $19.7 million, compared with net income of $35 million a year earlier. In February, the company completed the acquisition of UK-based competitor Dowlais Group, with associated costs weighing on results. Taking partial effects of the deal into account, Dauch forecasts 2026 revenue of $10.3-10.7 billion.

Year to date, Dauch shares have declined just over 5%. Six Wall Street analysts recommend “buy,” and five rate the stock “hold.” The average target price of $9.64 per share implies 58% upside.

Nextdoor Holdings

Number of hedge funds holding shares: 80

Nextdoor operates a social network for neighborhoods. In 2025, the company reported a 4% increase in revenue to $258 million and narrowed its net loss by nearly 45% to $54 million.

Last year, hedge fund EMJ Capital, which was behind the revival of meme mania, described the company as “one of the most misunderstood platforms in the market,” which has yet to recognize its potential in AI. This triggered a sharp rally in the stock.

Despite this, shares are down 33% year to date. The stock has four “hold” ratings from Wall Street analysts and only one “buy.” The average target price of $2.58 per share implies 83% upside.

Lindblad Expeditions 

Number of hedge funds holding shares: 78

Lindblad Expeditions, in partnership with National Geographic, organizes expeditions and educational travel. In 2025, revenue increased 20% to $771 million, while adjusted EBITDA rose 38% to $126.2 million. This was the “strongest performance in our company's history,” according to CEO Natalya Leahy.

Year to date, shares are up 18.3%. Of six Wall Street ratings, five are “buy” and one is “hold.” The average target price of $24 per share implies just over 40% upside.

Sweetgreen

Number of hedge funds holding shares: 75

Healthy food chain Sweetgreen reported 2025 revenue of $679.5 million, broadly flat, and a 7.9% decline in same-store sales. The net loss widened 48% to $134.1 million. CEO Jonathan Neman said the results “fell short of our expectations” and pledged to implement the “Sweet Growth Transformation Plan” “with urgency,” focusing primarily on menu changes.

Year to date, shares are down 20%. The stock has 12 “hold” ratings, three “buy,” and two “sell.” The average target price of $6.83 per share implies about 27% upside.

Cable One

Number of hedge funds holding shares: 68

Cable One, which operates under the Sparklight brand, provides internet, cable TV, and telephony services. In 2025, total revenue declined about 5% to $1.5 billion.

The decline was driven by lower residential internet revenue (down 2.6%) and a sharp drop in pay-TV revenue (down 15.7%), while the business segment showed marginal growth of $0.8 million (up 0.3%). The company reported a net loss of $356.5 million, compared with net income of $14.5 million a year earlier, primarily due to noncash impairments of franchise and goodwill values.

Year to date, shares have fallen more than 14%. The stock has five “hold” ratings, two “sell,” and one “buy.” The average target price of $160.40 per share implies roughly 66% upside.

Sabre Corp.

Number of hedge funds holding shares: 66

Sabre operates a travel booking technology platform serving airlines, agencies, and hotels. In 2025, revenue rose 3.7% to $2.8 billion, while loss from continuing operations narrowed 6.25% to $255 million.

Year to date, shares are up about 7%. Five analysts rate the stock “hold,” and three “buy.” The average target price of $1.89 per share implies 30% upside.

Stitch Fix

Number of hedge funds holding shares: 65

Stitch Fix offers a personalized online styling service: customers fill out a questionnaire, after which stylists use algorithms to select items for fitting and ship them to the customer’s home.

In the second quarter of fiscal 2026 (ended January 31), the company reported net revenue of $341.3 million, up 9.4% year over year, while revenue per client increased 7.4% to $577. For fiscal 2025, net revenue declined 5.3% to $1.27 billion, or 3.7% excluding the impact of an extra week in fiscal 2024.

Year to date, shares have fallen 35%. Three analysts rate the stock “hold,” one “sell,” and one “buy.” The target price of $4.50 per share implies 32.4% upside.

Cars.com

Number of hedge funds holding shares: 63

Cars.com describes itself as the top automotive marketplace in terms of awareness, with 70% organic traffic. The company works with dealers, helping them attract buyers and manage sales.

In 2025, revenue increased 1% to $723.2 million, while net income declined 58% to $20.1 million, largely due to adjustments related to contingent consideration and gains recorded in 2024 from the sale of an equity stake.

Year to date, shares are down nearly one third. Four analysts recommend “buy,” two “hold,” and one “sell.” The average target price of $13.43 per share implies about 62% upside.

First Watch Restaurant Group

Number of hedge funds holding shares: 63

First Watch offers a healthier alternative to traditional breakfast and brunch, focusing on freshly prepared dishes and juices.

In 2025, total revenue increased 20.3% to $1.2 billion, while system-wide sales rose 16.1% to $1.4 billion. Net income totaled $19.4 million (up 2.65%).

Year to date, shares have declined nearly 29%. Eleven analysts recommend “buy,” and one rates “hold.” The average target price of $19.50 per share is nearly double current levels.

American Public Education

Number of hedge funds holding shares: 63

American Public Education focuses on online programs, particularly for military personnel and government employees. In 2025, consolidated revenue increased 3.9% to $648.9 million. CEO Angela Selden said each of the company’s three institutions delivered revenue growth.

Net income available to stockholders increased 151.6% to $25.3 million, while adjusted EBITDA rose 18.6% to $85.7 million.

Year to date, shares have gained more than 50%. Seven analysts recommend “buy,” and one “hold.” The average target price of $57.43 per share is broadly in line with current levels.

MediaAlpha

Number of hedge funds holding shares: 62

MediaAlpha operates a lead-generation marketplace connecting advertisers with platforms where customers submit purchase inquiries.

The company reported record 2025 revenue of $1.1 billion (up 29%) and record net income of $26.8 million (up 21%). The board approved doubling its buyback program to $100 million.

Year to date, shares are down 28%. Six analysts recommend “buy,” and two rate the stock “hold.” The average target price of $13.79 per share implies 47% upside.

Cracker Barrel Old Country Store

Number of hedge funds holding shares: 61

Cracker Barrel operates a restaurant chain combining Southern-style dining with a retail offering.

In the second quarter of fiscal 2026 (ended January 30), revenue declined 7.9% year over year to $874.8 million. Comparable restaurant sales fell 7.1%, while retail sales declined 9.2%. Adjusted EBITDA nearly halved to $38.2 million. Full-year 2025 revenue totaled $3.48 billion, up 2.2% excluding the extra week in 2024.

Year to date, shares are up about 13%. The stock has five “hold” ratings, one “buy,” and three “sell.” The average target price of $31.57 per share implies about 9% upside.

Build-A-Bear Workshop

Number of hedge funds holding shares: 58

Build-A-Bear Workshop is a retail-entertainment brand offering customizable plush toys.

In 2025, revenue increased 6.7% to $529.8 million, while net retail sales rose 5.6% to $486 million. CEO Sharon Price John said growth was supported by the opening of more than 60 new locations for the second consecutive year.

Year to date, shares have declined about 40%. All four analyst ratings are “buy.” The average target price of $62 per share implies 63% upside.

Portillo’s

Number of hedge funds holding shares: 58

Chicago-based Portillo’s focuses on local-style food, including hot dogs, Italian beef sandwiches, and chocolate cake.

In 2025, revenue increased 3% to $732.1 million, while net income declined 40% to $21.1 million, reflecting higher costs, including expenses related to opening eight new restaurants.

Year to date, shares are up more than 20%. Nine analysts rate the stock “hold,” and three “buy.” The average target price of $6.55 per share implies about 18% upside.