Online games, metals, energy: Freedom Broker spotlights eight smid stocks for 2026

Wall Street expects the macroeconomic backdrop in 2026 to be supportive for small and mid caps, with markets increasingly pricing in a so-called Goldilocks scenario: steady economic growth without overheating, a gradual normalization of inflation, and continued support for the labor market under a neutral-to-soft policy stance from the Fed, according to analysts at Freedom Broker. They prepared for Oninvest a list of eight small- and mid-cap stocks investors should pay attention to in 2026.

The growth outlook of Golden Matrix Group, which says it is "one of the world’s leading iGaming groups," is driven by two structural trends: the continued legalization of online gaming across jurisdictions and the migration of players to mobile platforms, Freedom says.

The company operates across three segments: online betting and casinos, iGaming software solutions, and paid contests. Its business model blends business-to-business technology solutions with consumer-facing brands across more than 15 jurisdictions, resulting in revenue diversification.

In the third quarter, Golden Matrix reported a 15% year-over-year increase in revenue to a record $47.3 million and posted net income of $0.4 million, or $0.01 per share, versus a net loss of $3.3 million a year earlier.

The stock is covered by two Wall Street analysts, both of whom rate it “buy,” according to MarketWatch data. The average target price of $2.83 per share implies upside of roughly 3.5 times the December 26 closing price.

Xperi, a media technology company, is positioned to benefit from the accelerating shift away from linear television toward streaming, which continues to drive adoption of smart TVs with embedded internet connectivity and interactive services, Freedom says.

The company develops embedded software platforms for televisions, vehicles, and consumer electronics. Its technologies support content discovery and enable monetization through data-driven services such as targeted video advertising, a key long-term growth driver.

By the third quarter, Xperi had met nearly all of its strategic growth targets for 2025. Quarterly revenue declined 16% year over year to $111.6 million, but the net loss narrowed nearly 64% to $6.1 million, or $0.07 per share, reflecting tighter cost discipline and a sharper focus on cash generation, the management said.

Five Wall Street analysts rate the stock “buy” or “overweight.” The average target price of $11.40 per share implies upside of nearly 100% versus recent levels.

The outlook for Allot in cybersecurity and network analytics is closely tied to its ongoing transition from a traditional network solutions provider to a cloud-based Security-as-a-Service (SECaaS) platform, according to Freedom. Analysts say the company has a good shot at strengthening its position in the SECaaS segment, which, according to estimates, could grow at double-digit rates annually.

In the third quarter, Allot reported a 14% year-over-year increase in revenue to $26.4 million and delivered what the management described as the company’s highest profitability in more than a decade. On the back of these results, Allot raised its full-year revenue guidance to $100-103 million from $98-102 million previously.

All five Wall Street analysts covering the stock rate it “buy.” The consensus target price of $13.38 per share implies upside of about 44%.

Sila Realty Trust is a real estate investment trust focused on healthcare real estate, a segment that is not affected by economic cycles. That, combined with the company's low debt and significant liquidity (over $568 million), not only provides stable income but also creates opportunities for further growth, Freedom says.

In the third quarter, Sila reported a nearly 5% year-over-year increase in net operating income to $42.8 million. Net income declined 2.5% to $11.6 million, or $0.38 per share. Freedom analysts highlight the REIT's dividend yield of about 6% as another component of its investment case.

Four Wall Street analysts rate the shares “buy,” while two recommend “hold.” The average target price of $28.50 per share implies upside of 24.4%.

Electromed, developer of the SmartVest airway-clearance system for patients with chronic lung disease, continues to deliver steady top-line growth alongside consistently improving margins, powered by high operational efficiency and good cost control, Freedom says.

In its latest quarter, i.e., its fiscal-2026 first quarter, the company reported a 15.1% year-over-year increase in net revenue to $16.9 million and a nearly 45.0% rise in net income to $2.1 million, or $0.25 per diluted share. The management said key operating metrics have increased on an annualized basis for 12 consecutive quarters, a trend Freedom believes still has room to run.

Four Wall Street analysts rate the stock “buy.” The average target price of $36.00 per share implies upside of 26%.

Millrose Properties stands out in the REIT space for to its asset-light model, providing capital returns for residential homebuilders by funding the acquisition and development of homesites under purchase option agreements. Additional drivers include its partnership with industry leader Lennar, a growing customer base, and expansion into the build-to-rent segment, Freedom says.

In the third quarter of 2025, the company reported revenue of $179.3 million, adjusted operating cash flow of $122.5 million, completed a $2.0 billion bond offering, and lifted liquidity to $1.6 billion. Freedom analysts also point to a dividend yield of 8.2% and an attractive valuation versus peers.

All six Wall Street analysts covering Millrose rate the stock “buy.” The average target price of $38.10 per share implies upside of roughly 25%.

Unitil supplies electricity and natural gas to mature markets in New England and is viewed as attractive thanks to its acquisitions, financial discipline, and dividend policy, according to Freedom.

In 2025, the company completed the integration of Bangor Natural Gas and Maine Natural Gas and received approval to acquire three Aquarion Water companies. The transactions expanded Unitil’s customer base to 236,000 and added more than $220 million to its rate base. In the third quarter, operating revenue rose nearly 9% year over year to $101 million.

In January, Unitil increased its quarterly dividend 5.9% year over year to $0.45 per share. Freedom notes that a conservative payout of about 60% leaves room for further dividend growth.

The stock has two Wall Street ratings, both “buy.” The average target price of $59.00 per share implies upside of nearly 21%.

MP Materials, a U.S. rate earth metals producer, is working to rebuild a domestic supply chain for critical magnetic materials. The company owns Mountain Pass, the only large-scale integrated rare earth mining and processing facility in North America, producing neodymium-praseodymium used in permanent magnets for electric vehicles, defense systems, turbines, and electronics.

In the third quarter, MP reported a 15% year-over-year decline in revenue to $53.6 million and a 64% increase in the net loss to $41.8 million, or $0.24 per share. Freedom attributes the deterioration primarily to the halt of all shipments to China under an agreement with the Pentagon and the continued investment phase required to establish a fully domestic supply chain.

The stock now carries 16 Wall Street ratings, all “buy,” up from nine three months earlier. The average target price of $79.00 per share implies upside of almost 48%.

This material does not constitute individualized investment advice.