Where to Invest $1,000 in September: Betting on Gold, Entertainment, and Auto Parts
The main driver behind Vox Royalty is expensive gold: rising prices and production are boosting revenue without a corresponding increase in expenses / Photo: Shutterstock.com
After several years of sluggish earnings growth, the situation in the small-cap segment may begin to change: analysts expect a noticeable improvement in corporate results in 2026–2027. Combined with a stable U.S. economy, this creates a favorable backdrop for the Russell 2000, according to Georgy Timoshin, junior strategist at Freedom Finance Global. He named three stocks from three different sectors that he considers the most promising this fall.
What is the potential of small-cap stocks?
The second-quarter earnings season showed that, despite ongoing risks, the U.S. corporate sector as a whole demonstrated solid fundamentals, Timoshin notes. The small-cap segment is no exception: for the quarter, the aggregate revenue of Russell 2000 companies rose 11.4% year-over-year, and earnings per share (EPS) rose 23.4%.
The Russell 2000 also retains significant upside potential. The consensus forecast suggests that the index could rise by 29.8% over the next 12 months—to 3,838 points.
Expectations regarding corporate earnings growth for 2026–2027 also remain positive, Timoshin notes. Wall Street forecasts a 16.6% increase in EPS for small-cap companies by the end of 2026 and a further 42.6% increase in 2027. If these forecasts prove accurate, it will signal that small-cap companies are emerging from a prolonged period of weak earnings growth that has characterized the segment for several years—specifically, from 2021 through the first quarter of 2026, the strategist concludes.
The macroeconomic backdrop also remains favorable for the stock market: according to Freedom Broker’s estimates, the U.S. economy continues to grow at a steady pace, while inflation is not accelerating. Analysts expect real GDP to grow by 2.2% year-over-year by the end of 2026, with price pressures gradually easing. In particular, the core PCE index—which excludes volatile food and energy prices—is expected to slow to approximately 3.1% year-over-year.
Taken together—solid performance in the corporate sector, a recovery in small-cap company earnings, and steady growth in the U.S. economy — create favorable conditions for the segment’s continued growth, according to Freedom Broker, which maintains a positive outlook on the small-cap sector. Georgy Timoshin has selected three stocks from three different sectors that are likely to outperform the market.
Phinia Inc. (ticker symbol PHIN)
Phinia manufactures fuel systems and components for internal combustion engines, as well as aftermarket parts. The company was spun off from BorgWarner in 2023.
Following the release of its second-quarter earnings report, the stock has fallen by about 15% from its July high of $82.62—which, according to Timoshin, presents potential for short-term growth. Phinia’s revenue grew 5.6% year-over-year to $940 million, and adjusted FCF (free cash flow) totaled $74 million, compared to $20 million a year earlier. The company raised its FCF forecast for 2026 to $210–250 million.
That said, profitability was the main weak point of the quarter: Adjusted EBITDA rose 3.2% to $130 million, but the margin fell by 0.4 percentage points to 13.8%—due to higher personnel expenses and a less favorable sales mix. Phinia expects this metric to improve in the second half of the year.
At a price of about $70.04, the stock is trading at a price-to-earnings (P/E) ratio of approximately 11.3 and an enterprise value-to-EBITDA (EV/EBITDA) ratio of 6.6 for the coming year. Freedom Broker has set a price target of $95 for Phinia shares over the next 12 months, with a short-term goal of seeing the stock return to levels seen a month ago.
According to MarketWatch, four analysts recommend buying Phinia stock, while two others recommend holding it. The average price target is $94, representing 38% upside potential from the closing price on August 3.
Vox Royalty (VOXR)
A royalty and streaming company that invests in rights to a share of future revenue or metal production from third-party deposits. The company does not operate mines; its revenue comes from payments made by partners engaged in the extraction of gold and other metals.
The main factor driving Vox Royalty’s investment appeal is the high price of gold. As the price of gold and production volumes rise, the company’s revenues can increase without a corresponding rise in operating expenses. Additional potential comes from expanding the royalty portfolio and selling individual assets at prices above their intrinsic value.
However, second-quarter results fell short of expectations due to a decline in recurring revenue, and a significant portion of EBITDA was attributable to one-time gains from the sale of assets, notes Georgy Timoshin.
Among the key risks facing Vox Royalty are a decline in gold prices, delays or reductions in production at its partners' mines, and low predictability of quarterly results.
The 12-month target price for Vox Royalty shares is $6.6, with upside potential of approximately 13.6% from the closing price on September 3. In the short term, the company’s stock performance will largely depend on gold prices: a renewed rise in gold prices could give the stock an additional boost, according to Freedom Broker.
According to MarketWatch, all six analysts covering Vox Royalty stock have assigned it a “Buy” rating. The average price target is $7.4, with upside potential of about 27%.
Venu Holding Corporation (VENU)
An operator of concert venues, restaurants, and premium entertainment facilities in the U.S. The company’s main focus is on expanding its network of amphitheaters and growing operating profit as new venues open. One of the key drivers is the Regent Bank Amphitheater, which is expected to increase the number of events and the company’s revenue.
The company is also exploring alternative financing options that could reduce the need to issue new shares and thereby limit the dilution of existing shareholders' stakes.
Venu is currently in an active investment phase: capital expenditures, depreciation, and administrative expenses are weighing on profits, and new sites will take time to reach their target performance levels. In the first half of 2026, the company’s revenue grew 7% year-over-year to $8.5 million. The net loss for the first half of 2026 increased by 7.7% to $34.2 million.
The main risks include high financing needs, rising debt, potential dilution of shareholders' equity, delays in construction and project launches, as well as low liquidity and high stock volatility.
Freedom Broker’s 12-month target price is $8.7, with upside potential of approximately 360% from the closing price on August 3. According to MarketWatch, the company’s stock has two “Buy” ratings from Wall Street analysts. The average target price is $6.85, which implies a 260% increase from the current price.
