Buy, Hold, or Wait: 3 Small-Cap Stocks Telling Different Stories

Summary

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.Get Boston Beer alerts:Sign Up 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 ProgressBoston Beer Today$180.43 +1.63 (+0.91%) As of 07/20/2026 03:59 PM Eastern This is a fair market value price provided by Massive. Learn more.52-Week Range$158.68▼$264.46Price Target$224.00Alcohol 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 appro...