Peloton Interactive, Inc.

Organon & Co.

KalVista Pharmaceuticals, Inc.

Frontline plc

Rigetti Computing, Inc.

First Trust Small Cap Value AlphaDEX Fund

Avantis International Small Cap Value ETF

Peloton's workouts will appear on the Spotify streaming service app. Indian pharma company Sun Pharma will buy women's health products maker Organon, and Italy's Chiesi will buy KalVista, a developer of therapies for a rare disease. The leaders among small-cap ETFs in the first quarter were funds that benefited from the conflict in the Middle East and the resulting energy shock. Read about the main events of the small-caps sector from Ma. 27 to Ma. 1 in our review.

Highlights in small-caps: Peloton and Spotify deal, M&amp;A in pharma, small-caps ETF results 

Hertz Global Holdings, Inc.

Uber Technologies, Inc.

Shares of Hertz Global Holdings, one of the world’s largest car-rental companies, surged nearly 14% on Thursday after the "<a href="https://www.wsj.com/articles/hertz-the-original-meme-stock-rewards-its-true-believers-11621354091">original meme stock</a>" announced a robotaxi <a href="https://newsroom.hertz.com/press-releases/press-release-details/hertz-and-uber-partner-to-power-autonomous-robotaxi-and-driver-led-fleet-operations/">partnership</a>&nbsp;with Uber Technologies.

Meme stock Hertz rallies almost 14% on robotaxi partnership with Uber 

Shares of rare disease small cap developer KalVista Pharmaceuticals <a href="https://finance.yahoo.com/quote/KALV/">surged</a>&nbsp;almost 40% on Wednesday to their highest level since mid-2021 after the biotech <a href="https://ir.kalvista.com/news-releases/news-release-details/chiesi-group-acquire-kalvista-pharmaceuticals-expanding-its">said</a>&nbsp;it would be acquired at a premium by Italian drugmaker Chiesi Group. M&amp;A activity in the rare disease space continues to accelerate, and investors should watch the sector closely for new opportunities, <a href="https://www.channelchek.com/news-channel/chiesi-drops-1-9-billion-to-snag-kalvista-and-the-first-oral-hae-treatment-on-the-market">writes</a>&nbsp;Noble Capital Markets.

Small-cap biotech KalVista to be acquired by Italy's Chiesi; stock hits 5-year high

Avantis U.S. Small Cap Value ETF

Avantis U.S. Small Cap Equity ETF

Dimensional US Small Cap Value ETF

APA Corporation

iShares MSCI ACWI ex U.S. ETF

Kosmos Energy Ltd.

The escalating conflict in the Middle East has <a href="https://en.oninvest.com/article/middle-east-oil-supply-disruption-surpasses-losses-from-1970s-crises-iea">triggered</a>&nbsp;the largest disruption to oil supplies in the history of the global market. Against that backdrop, oil prices have remained&nbsp;near $100 per barrel, while the energy sector in the S&amp;P 500 <a href="https://finance.yahoo.com/sectors/energy/articles/energy-stocks-surged-38-q1-200000694.html">gained</a>&nbsp;about 38% in the first quarter even as the broader index <a href="https://www.fool.com/investing/2026/03/25/the-sp-500-is-on-track-to-finish-q1-in-negative-te/#:~:text=S%26P%20500%20slid%20roughly%204.6%25%20in%20the%20first%20quarter.">fell</a>&nbsp;4.6%.

Small-cap ETFs in 1Q26: Who managed to gain from the energy shock?

Shares of Organon, the mid-cap maker of women’s health drugs, surged nearly 17% on Monday to mark a one-year high. The company <a href="https://s27.q4cdn.com/703211477/files/doc_news/Organon-s-11-75Bn-Sale-to-Sun-Pharma-04-26-2026-v34.pdf">announced</a>&nbsp;it will be acquired at a premium by India’s Sun Pharmaceutical Industries.

Mid-cap biotech Organon to be acquired by Sun Pharma; shares soar to one-year high

Spotify Technology S.A.

Shares of Peloton Interactive, the small-cap fitness equipment maker and creator of fitness content, <a href="https://finance.yahoo.com/quote/PTON/">climbed</a>&nbsp;2.5% on Monday to reach a two-month high. Markets were reacting to the company’s <a href="https://investor.onepeloton.com/news-releases/news-release-details/pelotons-world-class-content-fuel-spotifys-new-fitness-category">announcement</a>&nbsp;of a partnership with Spotify. Wall Street analysts <a href="https://www.marketwatch.com/investing/stock/pton/analystestimates?mod=mw_quote_tab">see room</a> for Peloton stock to rise another 48% from here.

Peloton hits two-month high on Spotify partnership announcement

Freedom Broker now sees about 15% near-term upside in shares of Frontline, arguing that investors are underestimating the pace at which geopolitical tensions are tightening the crude shipping market.

Freedom Broker issues short-term trade idea to buy stock of oil shipper Frontline

Until the financial condition of&nbsp;Rigetti Computing "improves significantly," investors should limit themselves to speculative buys or avoid the stock completely, Motley Fool contributor Will Healy <a href="https://www.fool.com/investing/2026/04/27/rigetti-computing-down-70-from-high-time-to-buy/">argues</a>&nbsp;in a new article.

Motley Fool says limit or avoid buying Rigetti stock, citing financial condition

Frontier Group Holdings, Inc.

Hecla Mining Company

Kaiser Aluminum Corporation

GitLab Inc.

USA Rare Earth, Inc.

X-Energy, Inc. Class A Common Stock

Qorvo, Inc.

This week, shares of rare earths producer USA Rare Earth rose after the acquisition of Serra Verde mines, strengthening the company’s position in a strategic sector. Meanwhile, cannabis and psychedelics stocks advanced on regulatory easing in the U.S. Against this backdrop, analysts have highlighted small caps amid uncertainty over the future of U.S.-Iran negotiations, as well as chipmakers that could benefit from the launch of a foldable iPhone. Below is a roundup of key developments in the small-cap segment from April 20 through April 24.

Small caps last week: U.S.-Iran talks, rare earths, U.S. drug policy easing, chips

Terns Pharmaceuticals, Inc.

Gossamer Bio, Inc.

Kura Oncology, Inc.

Replimune Group, Inc.

REGENXBIO Inc.

“If you had to pick a single industry that could be interesting to every hedge fund, it might be biotech,” Mergers &amp; Inquisitions founder Brian DeChesare <a href="https://mergersandinquisitions.com/biotech-hedge-funds/">wrote</a>&nbsp;in a blog post. Investments in biotechs can deliver huge gains – and huge losses – in short periods, while their stocks are often only weakly correlated with broader market trends, he noted.

Up to 840% upside: 10 smid-cap biotechs most popular with hedge funds

Amazon.com, Inc.

The nuclear company raised $1.02 billion in a U.S. IPO that priced above the marketed range

X-Energy IPO: Amazon-backed maker of small modular nuclear reactors debuts

Astec Industries, Inc.

Trilogy Metals Inc.

Taylor Devices, Inc.

Aeluma, Inc.

Northeast Community Bancorp, Inc.

Since the start of the year, the small- and mid-cap segment has shown a notable recovery: the Russell 2000 index has gained more than 12%, while the broader S&amp;P 500 is up less than 5%. Volatility remains elevated amid geopolitical uncertainty and turbulence in commodity markets. In this environment, Freedom Finance Global analyst Georgy Timoshin suggests viewing the market through a balance of two factors: economic growth and inflationary pressure. Based on this approach, he has come up with five stocks with solid upside over the next 12 months.