5 Best Small-Cap Stocks To Buy Now

In this article, we discuss 5 best small-cap stocks to buy now. If you want to see more stocks in this selection, check out 10 Best Small-Cap Stocks To Buy Now. 

5. PROCEPT BioRobotics Corporation (NASDAQ:PRCT)

Number of Hedge Fund Holders: 19

PROCEPT BioRobotics Corporation (NASDAQ:PRCT) is a California-based surgical robotics company that develops transformative solutions in urology. On October 10, PROCEPT BioRobotics Corporation (NASDAQ:PRCT) announced that it has entered into a new five-year $52 million loan arrangement with CIBC Innovation Banking. It is one of the premier small-cap stocks to invest in. 

Truist analyst Richard Newitter initiated coverage of PROCEPT BioRobotics Corporation (NASDAQ:PRCT) on October 25 with a Buy rating and a $58 price target. The company is disrupting the benign prostatic hyperplasia (BPH) surgery market with its AquaBeam Robotic System and initially targeting a “sizeable” $870 million resective BPH opportunity in the United States, the analyst told investors. The total addressable market opportunity is even bigger, about as much as $10 billion to $20 billion, when considering the approximately 8 million BPH patients in active treatment or management in the US, the analyst added.

Among the hedge funds tracked by Insider Monkey, 19 funds reported owning stakes in PROCEPT BioRobotics Corporation (NASDAQ:PRCT) at the end of the second quarter of 2022, compared to 7 funds in the prior quarter. Andreas Halvorsen’s Viking Global is the leading position holder in the company, with 1.5 million shares worth $50.5 million. 

4. Prometheus Biosciences, Inc. (NASDAQ:RXDX)

Number of Hedge Fund Holders: 20

Prometheus Biosciences, Inc. (NASDAQ:RXDX) was incorporated in 2016 and is headquartered in San Diego, California. It is a biopharmaceutical company, focused on the discovery, development, and commercialization of novel therapeutics and companion diagnostics products for the treatment of inflammatory bowel diseases. 

On November 1, Stifel analyst Annabel Samimy raised the price target on Prometheus Biosciences, Inc. (NASDAQ:RXDX) to $55 from $50 and kept a Buy rating on the shares ahead of Phase 2 data for ARTEMIS-UC and APOLLO-CD due in Q4 2022. The analyst is “generally optimistic” that PRA023 can achieve 10%-15% pbo-corrected clinical remission in ARTEMIS-UC, categorizing this as “the range of typical UC biologics and minimal bar for approvability.” 

According to Insider Monkey’s data, 20 hedge funds were bullish on Prometheus Biosciences, Inc. (NASDAQ:RXDX) at the end of June 2022, compared to 17 funds in the preceding quarter. Bihua Chen’s Cormorant Asset Management is the leading stakeholder of the company, with more than 2 million shares worth $57.2 million. 

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.”

2. Ambarella, Inc. (NASDAQ:AMBA)

Number of Hedge Fund Holders: 27

Ambarella, Inc. (NASDAQ:AMBA) is a California-based company that provides semiconductor solutions which support high-definition and ultra HD compression, image processing, and deep neural network processing worldwide. On October 11, Needham analyst N. Quinn Bolton maintained a Buy recommendation on Ambarella, Inc. (NASDAQ:AMBA) but lowered the price target on the shares to $90 from $110 as part of a broader research note on Semiconductors & Semiconductor Equipment. 

According to the second quarter database of Insider Monkey, 27 hedge funds were bullish on Ambarella, Inc. (NASDAQ:AMBA), compared to 32 funds in the preceding quarter. Steve Cohen’s Point72 Asset Management is the biggest stakeholder of the company, with 655,043 shares worth approximately $43 million. Ambarella, Inc. (NASDAQ:AMBA) is one of the best small-cap stocks to buy according to smart investors. 

Here is what Carillon Tower Advisers specifically said about Ambarella, Inc. (NASDAQ:AMBA) in its Q2 2022 investor letter:

“Ambarella, Inc. (NASDAQ:AMBA) is a leading supplier of video processing and computer vision chips used in the security and automotive markets. The company continues to face supply headwinds as well as some disruptions among its customers in China related to COVID lockdowns.”

1. Bloomin’ Brands, Inc. (NASDAQ:BLMN)

Number of Hedge Fund Holders: 35

Bloomin’ Brands, Inc. (NASDAQ:BLMN) is a Florida-based company that owns and operates casual, upscale casual, and fine dining restaurants in the United States and internationally. On October 28, Bloomin’ Brands, Inc. (NASDAQ:BLMN) declared a quarterly dividend of $0.14 per share, in line with previous. The dividend is distributable on November 23, to shareholders of record on November 9. Bloomin’ Brands, Inc. (NASDAQ:BLMN) also posted market-beating Q3 results and lifted full-year sales forecasts. 

On October 31, investment advisory Barclays raised the firm’s price target on the shares to $28 from $26 and kept an Overweight rating on the shares following the Q3 beat. Analyst Jeffrey Bernstein issued the ratings update. 

According to Insider Monkey’s data, 35 hedge funds were bullish on Bloomin’ Brands, Inc. (NASDAQ:BLMN) at the end of the second quarter of 2022, compared to 34 funds in the prior quarter. Brett Barakett’s Tremblant Capital is the biggest stakeholder of the company, with 2.6 million shares worth $43.5 million. 

Here is what Clearbridge Investments Mid Cap Strategy has to say about Bloomin’ Brands, Inc. (NASDAQ:BLMN) in its Q1 2022 investor letter:

“We initiated a new position in Bloomin’ Brands (NASDAQ:BLMN), in the consumer discretionary sector. The owner and operator of upscale casual dining brands, including Outback Steakhouse and Bonefish Grill, the company utilized the challenges of the COVID-19 pandemic to implement new productivity operations for its waitstaff and focus on improving corporate margins. As we transition from pandemic to endemic, the company should be able to meet the rebound in restaurant attendance with an improved cost structure and better operating leverage. We believe these long-term improvements and increased demand for dining are not reflected in the current share price.”

You can also take a look at 17 Biggest Finance Companies in the World and Harvard University’s Stock Portfolio. 

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