Perfect Corp.

Shares of Perfect Corp., a small-cap developer of AI-powered beauty solutions and a partner to global brands including L’Oréal, surged nearly 30% on Wednesday after the company <a href="https://ir.perfectcorp.com/news-and-events/news-releases/news-details/2026/Perfect-Announces-Receipt-of-Preliminary-Non-Binding-Going-Private-Proposal/default.aspx">said</a>&nbsp;it had received a preliminary <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001899830/a78d3f1c-b1a9-470f-b4c6-7f9fc0aec3c0.pdf">buyout offer</a>&nbsp;from Taiwan-based software developer CyberLink and founder Alice Chang.

Shares of virtual beauty company Perfect Corp. soar on going-private proposal

ADTRAN Holdings, Inc.

Lincoln Educational Services Corporation

Bowman Consulting Group Ltd.

Portfolio managers of three funds at Royce Investments, Jim Stoeffel and Andrew Palen, <a href="https://www.royceinvest.com/insights/2026/1Q26/how-micro-caps-can-stay-on-top">named</a>&nbsp;three small-cap stocks “in which we have long-term conviction.” Two of them, in their view, will benefit from investments in AI, while one will gain from rising U.S. infrastructure spending.

Three 'long-term conviction' holdings from Royce

BankUnited, Inc.

Champion Homes, Inc.

ESAB Corporation

FirstService Corporation

AZZ Inc.

Patrick Industries, Inc.

Allison Transmission Holdings, Inc.

Primoris Services Corporation

The S&amp;P SmallCap 600 index has <a href="https://finance.yahoo.com/quote/%5ESP600/">risen</a>&nbsp;1.5% year to date, while the broader-market S&amp;P 500 has <a href="https://finance.yahoo.com/quote/%5EGSPC/">fallen</a> more than 3.0%. On the one hand, investors are seeking more attractive alternatives to tech stocks and diversifying their portfolios, Barron's <a href="https://www.barrons.com/articles/small-cap-stocks-funds-21f99423?gaa_at=eafs&amp;gaa_n=AWEtsqfo1dD7hiMDWoiAMoUesBM2U_8b7jNmNWUguoHoGBVCLwkL3scN4izy&amp;gaa_ts=69b7c082&amp;gaa_sig=z-A7l6M0qp-rQ1Zzcerb0ado3JXtJhXJMAXeCQnPcOkZCjhr9CqVAUeiO1Og_NZnMSI40M3x8Uiu4sgZCnx8vA%3D%3D">writes</a>&nbsp;in a feature. On the other, earnings among small-cap companies are recovering after nearly three years of decline. That “represents a meaningful shift” for smaller companies, T. Rowe Price notes. Trailing 12-month earnings for the S&amp;P SmallCap 600 have increased nearly 30% since last October, following almost three years of contraction.

Four 'top-notch' funds, eight 'under-the-radar' stocks for small-cap investors

Associated Banc-Corp

Century Communities, Inc.

Choice Hotels International, Inc.

Primo Brands Corporation

Columbia Sportswear Company

Barron’s has <a href="https://www.barrons.com/articles/small-cap-value-fund-crushing-peers-f3b098da?mod=RTA">highlighted</a>&nbsp;five stocks held by Heartland Value, a fund focused on investing in small-cap companies. The fund delivered a 30.8% one-year return, compared with 25.4% for the Russell 2000 Value index. Morningstar has ranked Heartland Value among the top 4% of funds in its category based on that performance.

Five holdings of outperforming small-cap value fund Heartland 


Swarmer, a small-cap developer of drone software, saw its shares soar 520% on Tuesday, the first day after its IPO. Against a backdrop of rising geopolitical tensions and increased military spending globally, investors have turned their attention to the defense segment, Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-03-17/ai-drone-software-stock-jumps-700-in-best-ipo-since-newsmax">notes</a>.

Drone software company Swarmer skyrockets 520% in first day of trading

Beyond Meat, Inc.

Shares of plant-based meat producer <a href="https://finance.yahoo.com/quote/BYND/">Beyond Meat</a> fell nearly 5% in premarket trading on Tuesday after the company <a href="https://investors.beyondmeat.com/news-releases/news-release-details/beyond-meatr-reports-delay-annual-report-form-10-k-full-year">said</a>&nbsp;it would not be able to file its annual report on time. Beyond Meat stock has been “a colossal disappointment,” Motley Fool contributor Will Ebiefung <a href="https://www.fool.com/investing/2026/03/14/3-reasons-to-sell-beyond-meat-stock-before-its-too/">wrote</a>&nbsp;a few days before.

Beyond Meat shares selling off on annual report delay, preliminary 4Q revenue

Ollie's Bargain Outlet Holdings, Inc.

Wells Fargo has <a href="https://www.cnbc.com/2026/03/13/wells-fargo-upgrades-this-discount-retail-chain-on-store-growth-and-value-shopping-tailwinds.html">upgraded</a>&nbsp;mid-cap discount retailer Ollie’s Bargain Outlet as the company expands its store network and increases comparable-store sales, while it may also benefit from new tax incentives in the U.S. As a result, the analysts say “confidence is building into an attractive '26 set-up.”

'Confidence is building': Wells Fargo upgrades mid-cap discount retailer Ollie's

Petco Health and Wellness Company, Inc.

Shares of Petco, a pet-supplies retailer, jumped 34.6% on Thursday after the company improved its outlook for 2026 and said it expects sales to rebound, helped by an expanded assortment of services and pets sold in stores – with tarantulas seen as a new pet trend in the U.S. Jefferies raised its target price for Petco stock, saying the shares do not reflect the progress made so far or the potential for further changes and trade at a discount versus peers.

Petco shares soar on 4Q/2026 earnings, driven by services, fresh food, and tarantulas

CarMax, Inc.

Carvana Co.

Activist investor Starboard Value has <a href="https://www.bloomberg.com/news/articles/2026-03-11/activist-starboard-is-said-to-build-350-million-stake-in-carmax">acquired</a>&nbsp;about $350 million worth of shares in CarMax, a mid-cap retailer of used cars. With the arrival of a new chief executive, the company faces a “timely opportunity to address fixable execution gaps and unlock CarMax’s full value potential,” the activist said.

'A big opportunity': Activist Starboard takes stake in used car retailer CarMax

Aeva Technologies, Inc.

The Hackett Group, Inc.

Extreme Networks, Inc.

TipRanks has <a href="https://www.tipranks.com/news/3-small-cap-tech-stocks-with-strong-buy-ratings-and-big-upside-in-2026">identified</a>&nbsp;three small cap tech stocks with "strong buy" ratings and big upside in 2026. Year to date, their share performance has diverged, yet Wall Street still sees upside of at least 49%.

TipRanks names three tech small caps that Wall Street thinks have at least 49% upside

Ituran Location and Control Ltd.

Shares of <a href="https://en.oninvest.com/article/the-higher-the-crime-rate-the-higher-the-demand-for-our-services-an-interview-with-the-head-of-ituran">Ituran Location and Control</a>, an Israeli small cap listed in the U.S. that provides satellite-based vehicle monitoring services, offer about 15% upside, according to an update on the company by Freedom Broker (seen by&nbsp;<i>Oninvest</i>). New initiatives are expected to drive growth in subscriber numbers, while dividends and share buybacks should support the stock, the analysts say.

Freedom Broker raises TP on telematics company Ituran after recent earnings

Absci Corporation

Mitek Systems, Inc.

Evolv Technologies Holdings, Inc.

The AI Small Cap Index, assembled for <i>Oninvest </i>by analyst Aldiyar Anuarbekov, delivered a strong gain in 2025. The index includes 43 small caps whose businesses are linked to AI infrastructure, sensing technologies, robotics, and quantum computing. For 2025, the equal-weight index climbed 34.6%, while the cap-weight index rose 58.2%. For comparison, the broad-market S&amp;P 500 gained 16.3%, while the Russell 2000, which tracks smid-cap companies, advanced 11.3% over the same period.

Small caps