Where to invest $1,000 in autumn 2026: Three small-cap ideas from Freedom

After several years of weak earnings growth, the outlook for small caps may be starting to look up, with analysts expecting a marked improvement in results in 2026-2027. Amid the resilience of the U.S. economy, this is creating a favorable backdrop for the Russell 2000, Freedom Finance Global Junior Strategist Georgy Timoshin told Oninvest. He offers three small-cap stocks from three sectors that he considers the most promising this autumn.

The second-quarter earnings season showed that despite persistent risks, U.S. corporates generally showed resilient fundamentals, Timoshin notes. Small caps were no exception: aggregate revenue among Russell 2000 companies rose 11.4% year over year in the quarter, while earnings per share increased 23.4%. The Russell 2000 also retains significant upside. The consensus forecast suggests growth of 29.8% over the next 12 months to 3,838 points.

The macro backdrop also remains favorable for equities. Freedom Broker reckons that the U.S. economy will continue to grow at a steady pace without an acceleration in inflation. It sees real GDP expanding 2.2% in 2026, while price pressures are expected to ease gradually. In particular, growth in the core PCE price index, which excludes volatile food and energy prices, is forecast to slow to around 3.1% year over year.

Taken together, resilient corporate fundamentals, a recovery in small-cap earnings, and steady U.S. economic growth are creating a favorable backdrop for further gains in the segment, according to Freedom Broker, which remains sunny on small caps.

Timoshin offers three stocks from three sectors that could outperform this autumn.

Phinia Inc. (PHIN)

Phinia manufactures fuel systems and components for internal combustion engines, as well as replacement parts for the aftermarket. The company was spun off from BorgWarner in 2023.

Following the release of its second-quarter earnings, the stock lost around 15% from its July high of $82.62 per share, which creates the space for a short-term rebound, Timoshin believes. Phinia’s revenue rose 5.6% year over year to $940 million, while adjusted free cash flow totaled $74 million versus $20 million a year earlier. The management raised its full-year FCF guidance to $210-250 million.

The quarter’s main weakness was profitability. Adjusted EBITDA increased 3.2% to $130 million on a margin of 13.8%, down 0.4 percentage points due to higher employee costs and an unfavorable product mix. Phinia expects the metric to improve in the second half.

At around $70.04 per share, the stock trades at approximately 11.3 times expected earnings and an enterprise value-to-EBITDA multiple of 6.6 times for next year. Freedom Broker has a 12-month target price of $95 per share for Phinia, while its short-term target is a return to the levels seen a month ago.

According to MarketWatch data, four analysts have "buy" calls on PHIN, while another two have “hold” ratings. The average target price of $94 per share implies 38% upside from the Thursday close.

Vox Royalty (VOXR)

Vox Royalty invests in rights to a share of future revenue or metal production from third-party mines. It does not operate the mines, instead generating income through payments from partners that produce gold and other metals.

The main point in Vox Royalty’s investment case is the high gold price. As the price of the metal and production volumes rise, the company’s revenue can increase without a comparable rise in operating expenses. Additional upside could come from expanding its royalty portfolio and selling individual assets for more than their intrinsic value.

However, its second-quarter results were weaker than expected due to lower recurring receipts, while a significant portion of EBITDA was tied to one-off income from asset sales, Timoshin notes. Vox Royalty’s main risks include falling gold prices, delays or lower production at partners’ mines, and limited visibility of quarterly results.

Freedom Broker’s 12-month target price for VOXR is $6.60 per share, implying around 13.6% upside from Thursday’s close. In the short term, the stock’s performance will largely depend on gold prices, and another rise in the metal could give the shares additional momentum, according to Freedom Broker.

Based on MarketWatch data, all six analysts covering Vox Royalty have a “buy” call on the stock. The average target price of $7.40 per share implies around 27% upside.

Venu Holding Corporation (VENU)

Venu operates concert venues, restaurants, and premium entertainment destinations in the U.S. The company is primarily betting on expanding its amphitheater network and growing operating profit as new venues open. One of the key drivers is Regent Bank Amphitheater in Oklahoma, which is expected to drive an increase in the number of events and company revenue.

Venu is also exploring alternative financing methods that could reduce the need to issue new shares and thereby limit dilution for existing shareholders. It remains in an active investment phase, with capex, depreciation, and administrative expenses weighing on profit, while new venues will need time to reach their target performance, Timoshin notes. In the first half of 2026, the company’s revenue rose 7.0% year over year to $8.5 million. Meanwhile, the net loss widened 7.7% to $34.2 million.

The main risks are high financing requirements, rising debt, potential shareholder dilution, and delays in construction and venue openings, as well as the stock's low liquidity and high volatility.

Freedom Broker’s 12-month target price is $8.70 per share, implying around 360% upside from the Thursday close. According to MarketWatch data, VENU has two “buy” ratings from Wall Street analysts. The average target price of $6.85 per share implies 260% upside from the current price.