5 Best Small-Cap Stocks To Buy Now

3. Warrior Met Coal, Inc. (NYSE:HCC)

Number of Hedge Fund Holders: 24

Warrior Met Coal, Inc. (NYSE:HCC) is an Alabama-based company that produces and exports non-thermal metallurgical coal for the steel industry. On November 2, Warrior Met Coal, Inc. (NYSE:HCC) posted its third quarter earnings, reporting earnings per share of $1.90 and a revenue of $371.94 million, topping Wall Street estimates by $0.06 and $1.2 million, respectively. The revenue increased 83.7% on a year-over-year basis. The company is also set to pay a per share quarterly dividend of $0.06 on November 11. Warrior Met Coal, Inc. (NYSE:HCC) is one of the best small-cap stocks to buy. 

On September 23, B. Riley analyst Lucas Pipes upgraded Warrior Met Coal, Inc. (NYSE:HCC) to Buy from Neutral with a price target of $50, up from $48. The analyst sees an attractive valuation with the shares underperforming the peer group significantly year-to-date. The company also has an opportunity for higher capital returns while the development of its signature growth project continues, the analyst told investors in a research note. He thinks raised capital returns would be the most meaningful short-term catalyst for the stock.

According to Insider Monkey’s data, Warrior Met Coal, Inc. (NYSE:HCC) was part of 24 hedge fund portfolios at the end of Q2 2022, compared to 31 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the largest stakeholder of the company, with 1.6 million shares worth $51 million. 

Here is what Horos Asset Management has to say about Warrior Met Coal, Inc. (NYSE:HCC) in its Q1 2022 investor letter:

“Among others, we can highlight that at Horos Value Internacional we exited our position in the metallurgical coal producer Warrior Met Coal, following the strong performance of its stock. Meanwhile, although with somewhat different dynamics, our investment in the metallurgical coal company Warrior Met Coal also had strong returns and we sold it during the period. The reason is purely due to its lower upside potential after a very strong performance.”