As of July 20, the Russell 2000 index, often referred to as the small-cap index, is up approximately 18% in 2026. That’s about double the gains of the S&P 500 and evidence of the sector rotation in the market. The idea is that many investors who are looking for alternatives to technology stocks and their frothy valuations are turning to small-cap stocks that have sold off sharply.
It’s not exactly a growth-versus-value play. Small-cap stocks often lag the market for good reasons. In many cases, the companies are not profitable and may have little revenue. But that’s not always the case, which is where the opportunity may lie.
Investors are looking for options, and they may find them in small-cap stocks. But as with any group of stocks, it’s important to know what you’re buying. Here are three small-cap stocks at different stages, each with an impact on the short-term investment outlook.
Boston Beer Turnaround Story Is a Work in Progress
Alcohol stocks face several headwinds, including shifting consumer tastes, GLP-1 drugs, and an overall trend toward health and wellness. Boston Beer (NYSE: SAM), known for its signature Samuel Adams brand of craft beer, has seen better days. SAM is down over 80% in the last five years and is trading at an eight-year low. Short interest at around 24% doesn’t help.
This isn’t a balance sheet story; it’s about earnings. In Q1 2026, the company lowered its adjusted earnings per share (EPS) guidance to a range between $8.50 and $10.50. At the midpoint, it would be on par with the company’s EPS for all of 2025.
The company’s founder, Jim Koch, returned as chief executive officer (CEO) in Aug. 2025. However, that hasn’t done much for SAM in the short term. It’s still early days, however. The consensus analyst price target is approximately $224, which would be more than 20% above its July 20 price. That aside, the stock has a consensus rating of Reduce, but that could change with the company’s earnings report due on July 23.
Why Opera's AI Growth Story Could Have More Upside
Opera Limited (NASDAQ: OPRA) is best known for its Opera web browser. But the reason for the stock’s return of about 92% in the last five years is the company’s pivot into agentic artificial intelligence (AI).
The contrast with a company like Boston Beer is a story that’s played out in the broader market. Investor capital has moved from consumer goods to technology, and specifically AI.
But is there enough upside left? Analysts give OPRA a consensus price target of $21.50, about 10% higher than its price on July 20. The company is also forecasting full-year revenue between $720 million and $735 million. At the low end, that’s a 25% year-over-year increase, suggesting the consensus target may be too low.
Complicating the outlook, however, is short interest of around 11% and two recent sales by the company’s CEO. Two sales in a short period may seem concerning. But they’re the only two sales that show up, so it’s not time for investors to get too concerned.
That aside, the chart looks solid; the company’s financials suggest OPRA is undervalued, including estimates of 24% earnings growth in the next 12 months. Add to that, the company pays a semi-annual dividend with an inflation-beating yield of over 4%. It also authorized a $300 million share buyback plan. Those factors make OPRA the Buy in this group.
Lindblad Expeditions Stock: Is Luxury Travel Growth Already Priced In?
Lindblad Expeditions (NASDAQ: LIND) is another example of how capital has moved in the last five years. Consumers are still prioritizing travel over stuff, particularly higher-income consumers. That fits right into Lindblad’s wheelhouse. The company is the global leader in expedition cruising. It specializes in immersive small-ship voyages to some of the world’s most remote, wildlife-rich regions.
LIND is up over 110% in the last five years. The company has become consistently profitable, and analysts are forecasting 110% earnings growth over the next 12 months. In the company’s Q1 2026 earnings report, it cited strong commercial momentum, affirming its 2026 booking pace and noting that its 2027 booking pace was accelerating.
All of that makes the long-term outlook positive. But in the short term, LIND stock looks extended relative to its valuation.
For buy-and-hold investors, the stock is worth holding; traders may want to trim their positions, and those not currently in the stock may find it better to wait for a pullback. It probably won’t be a big one, but somewhere around the 50-day simple moving average may offer a better entry point.
The article "Buy, Hold, or Wait: 3 Small-Cap Stocks Telling Different Stories" first appeared on MarketBeat.
