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Small-cap stocks can offer strong value in 2026, as many trade at low valuations and have solid cash flow.
Stocks such as Costamare, Nomad Foods, and Danaos Corp. show strong fundamentals despite their smaller market sizes.
Value-focused investors may find better long-term returns by looking beyond large-cap stocks and increasing their risk appetite.
Small-cap companies are firms with a valuation ranging from $300 million to $2 billion. The shares of such companies listed on exchanges are called small-cap stocks. While this segment is highly volatile, it typically offers better return opportunities because many investors overlook it. In-depth research and a strong understanding of market fundamentals can help value investors find companies trading at low prices with decent cash flow. Below are ten small-cap stocks that look promising with low valuation ratios and stable business models.
Costamare Inc operates in the global shipping sector and is mainly involved in container and dry bulk ships. The company has a market capitalization of $ 1.849 billion, and its stock price is trading close to $15.35. A 5.8 PE ratio suggests that Costamare Inc has strong earnings. Price-to-sales ratio is 1.3, and price-to-book ratio is 0.9, showing the stock is undervalued. Price to cash flow stays at 4, and EV/EBITDA is 4.6. Value percentile of 1 makes CMRE one of the most affordable small-cap shipping stocks.
Nomad Foods Ltd runs frozen food brands across Europe. The stock trades at $12.01 and has a market cap of $1.9 billion. PE ratio is 8, which looks reasonable. The price-to-sales ratio is very low at 0.5, while the price-to-book ratio is 0.6 and the price-to-cash flow ratio is 5.1. With an EV/EBITDA of 6.6 and a value percentile of 1, NOMD is a strong value stock for investors to consider.
Teekay Tankers Ltd operates oil and product tankers worldwide. Its stock price is $51.96, with a market cap of $1.8 billion. PE ratio of 5.6 reflects good profitability, while the price-to-sales ratio is 1.7, and the price-to-book ratio is 0.9. The price-to-cash flow is 4.3, and EV/EBITDA is 3.8. Despite having a value percentile of 2, TNK is a shipping stock with high growth opportunities.
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Danaos Corp focuses on container ships under long contracts. The stock trades at $94.32 and has a market cap of $1.7 billion. PE ratio is very low at 3.8. Price-to-sales stands at 1.7, while price-to-book drops to 0.5. Price-to-cash flow is 2.7, and EV/EBITDA is 2.7. Value percentile of 1 makes DAC a very price-effective stock compared to peers.
Leggett & Platt Inc produces components used in bedding, furniture, and auto products. The stock trades at $11.05 with a market cap of $1.4 billion. PE ratio is 6.9, and the price-to-sales ratio is only 0.4. The price-to-book ratio is higher at 1.5, but cash flow remains stable. Price-to-cash flow is 4.3, and EV/EBITDA is 6.6. Value percentile of 2 keeps LEG on value investors’ radar.
Greenbrier Companies Inc builds railcars and also leases them to customers. The stock price is $47.07, and the market capitalization is $1.5 billion. PE ratio is 7.5, which looks fair. Price-to-sales stays at 0.5, and price-to-book is 1. Price-to-cash flow is at 4.7, and EV/EBITDA is 6.3. With a value percentile of 2, GBX shows high upside potential.
Sally Beauty Holdings Inc sells beauty products to professionals and regular customers. Its stock trades at $14.92, and its market cap is $1.5 billion. PE ratio is 7.9. The price-to-sales ratio is low at 0.4, while the price-to-book ratio is 1.8. Price-to-cash flow stays near 5, and EV/EBITDA is 5.1. A value percentile of 2 makes SBH a decent consumer stock.
Spectrum Brands Holdings Inc owns many home and personal care brands. The stock price is $60.37, and the market cap is $1.4 billion. PE ratio is higher at 15.4, but other ratios look cheap. Price-to-sales is 0.5, and price-to-book is 0.8. Price-to-cash flow is 7.1, and EV/EBITDA is 6.5. The 2% value percentile is still within the 2% rule for value investing and supports SPB for long-term growth.
Dole PLC is one of the largest fresh fruit and vegetable companies. Stock trades at $14.06 with a market capitalization of $1.3 billion. PE ratio is 11.1. The price-to-sales ratio is very low at 0.2, indicating the stock is undervalued. Price-to-book is 1, and price-to-cash flow is 5.6, while EV/EBITDA stands at 6.4. A value percentile of 1 makes DOLE a strong option for investors seeking high-potential stocks.
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Ziff Davis Inc runs digital media websites and subscription platforms. The stock trades at $33.80 with a market cap of $1.3 billion. PE ratio is 13.2. Price-to-sales is 0.9, and price-to-book is 0.8. Price to cash flow stands at 4.1, and EV/EBITDA is 4. Value percentile of 1 places ZD among the best value small-cap stocks.
The small-cap companies mentioned above offer low valuations with proven business models. Many of them work in essential industries such as shipping, food, consumer goods, and transport. Investors who focus on value and cash flow may find a good opportunity in these small-cap stocks. However, before making any decisions, traders should perform an in-depth analysis of potential firms’ order books and financial statements. This can help them lower their chances of monetary loss and increase growth opportunities.
1. What are Small-Cap Stocks?
Small-cap stocks are companies with smaller market capitalization, usually between $300 million and $2 billion, and they often offer higher growth potential.
2. Why are small-cap stocks attractive in 2026?
Many small-cap stocks trade at low valuations while still earning good profits, which can lead to higher upside over time.
3. Is Costamare Inc a good value stock?
Costamare looks attractive due to its low PE ratio, strong cash flow, and discounted price compared to its assets.
4. How does Nomad Foods Ltd fit into a portfolio?
Nomad Foods provides defensive exposure because people continue buying food even during weak economic periods.
5. What makes Danaos Corp stand out?
Danaos Corp stands out due to very low valuation ratios and long-term shipping contracts that support steady income.
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