As of July 20, the Russell 2000 index, commonly referred to as the index of small stocks, is up about 18% in 2026. That's nearly double the S&P 500's gains and evidence of a sector rotation in the market. The idea is that many investors looking for alternatives to tech stocks and their frothy valuations are turning to small-cap stocks.
It's not exactly a game of growth versus value. Small stocks often close the market for good reasons. In many cases, companies are not profitable and may have little cash flow. But that's not always the case, that's where the opportunity may lie.
Investors want options, and they may find them in small stocks. But like any group of stocks, it's important to know what you're buying. Here are three small stocks in different categories, each contributing to the short-term investment outlook.
The Boston Beer Revolution Story is a Work in Progress
Boston Beer Today
- 52 week interval
- $158.68
▼
$264.46
- Target Value
- $224.00
Alcohol stocks are facing several headwinds, including changing consumer preferences, GLP-1 drugs, and overall health and wellness trends. Boston beer NYSE: SAMknown for its signature Samuel Adams brand of craft beer, has seen better days. SAM has fallen more than 80% in the past five years and is trading at eight-year lows. Short interest at around 24% is not helpful.
This is not a balance sheet issue; it's about income. For Q1 2026, the company lowered its adjusted earnings per share (EPS) guidance to a range between $8.50 and $10.50. In the middle, it will be in line with the company's EPS for the whole of 2025.
The company's founder, Jim Koch, returned as CEO on Aug. 2025. However, that didn't do much for SAM in the short term. It's still early days, though. The consensus analyst price target is around $224, which would be more than 20% above its July 20 price. Otherwise, the stock has a consensus rating of Reduce, but that could change with the company's July 23 earnings report.
Why Opera's AI Growth Story May Have Another Top
Opera Today
As of 07/20/2026 04:00 PM Eastern
- 52 week interval
- $11.71
▼
$21.06
- Dividend Yield
- 3.98%
- The P/E ratio
- 15.54
- Target Value
- $21.50
The difference with a company like Boston Beer is that it plays on a broader market. Investors' money has shifted from consumer goods to technology, especially AI.
But is there enough upside left? Analysts give OPRA a consensus price of $21.50, about 10% higher than its price on July 20. The company also forecasts 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 situation, however, is a short interest of around 11% and two recent sales by the company's CEO. Two sales in a short period of time may seem concerning. But those are the only two sales coming up, so it's not time for investors to get too worried.
That aside, the chart looks solid; the company's financials suggest that OPRA is undervalued, including estimates for earnings growth of 24% over the next 12 months. In addition to that, the company pays a quarterly dividend that exceeds inflation by more than 4%. It also approved a $300 million share repurchase program. Those factors make OPRA a Buy in this group.
Lindblad Expeditions Stock: Has Luxury Travel's Growth Been Priced?
Lindblad Expeditions Today
Lindblad Expeditions
As of 07/20/2026 04:00 PM Eastern
- 52 week interval
- $11.37
▼
$30.00
- Target Value
- $30.50
LIND is up more than 110% over the past five years. The company has been consistently profitable, and analysts are predicting 110% earnings growth over the next 12 months. In the company's Q1 2026 earnings report, it cited strong commercial momentum, confirmed its 2026 booking pace and noted that its 2027 booking pace is increasing.
All of that makes for a good long-term view. But in the short term, LIND stock looks stretched relative to its valuation.
For buy-and-hold investors, the stock is worth holding; traders may want to cut their positions, and those who are not currently in the stock may find it better to wait for a pullback. It probably won't be huge, but somewhere in the middle of the 50-day moving average would provide a better entry point.
Before you consider Boston Beer, you'll want to hear this.
MarketBeat tracks Wall Street's top and most effective research analysts and the stocks they recommend to their clients every day. MarketBeat identified five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Boston Beer wasn't on the list.
Although Boston Beer currently has an Underweight rating among analysts, top analysts believe these five stocks are the best.
View Five Stocks Here
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