5 Best Small-Cap Stocks to Buy According to Hedge Funds

1. Hostess Brands, Inc. (NASDAQ: TWNK)

Market Cap: $2.01 billion
Number of Hedge Fund Holders: 34

Hostess Brands, Inc. (NASDAQ: TWNK) is a leading American packaged food company. It mainly manufactures, sells, and markets snacks and bakery products in North America. Hostess Brands, Inc. (NASDAQ: TWNK) owns some of the most famous bakeries in the U.S., namely Voortman Cookies, Superior Cake Products, Inc., etc.

In Q2 2021, Hostess Brands, Inc. (NASDAQ: TWNK) reported a net income of $32.2 million, up 10.3% from the prior-year quarter. The EPS of $0.23 beat the market consensus by $0.01. Net revenue also increased by 13.5% year-over-year at $291.5 million. For FY21, Hostess Brands, Inc. (NASDAQ: TWNK) expects revenue growth between 7.5%-9.0%.

In May, Stephens initiated its coverage on Hostess Brands, Inc. (NASDAQ: TWNK) with an ‘Overweight’ rating and an $18 price target. In the past year, Hostess Brands, Inc. (NASDAQ: TWNK) has delivered a return of 23.5%.

As of Q1 2021, 34 hedge funds tracked by Insider Monkey have positions in Hostess Brands, Inc. (NASDAQ: TWNK), up from 26 in the previous quarter. The total value of these stakes is $338.2 million. Segantii Capital is the company’s leading shareholder with 1.2 million shares, worth $19.4 million.

You can also take a look at 15 Best Small-Cap Healthcare Stocks to Buy and 10 Best Small Cap Stocks to Buy in 2021

Follow Insider Monkey on Twitter