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News  ›  Investing.com

Small-Cap Stocks to Watch in 2026 as Investors Rotate Out of Big Tech

Investing.com Logo Investing.com By Chris Markoch
Small-Cap Stocks to Watch in 2026 as Investors Rotate Out of Big Tech

The Russell 2000 small-cap index is up 11% year-to-date, with analysts expecting strong performance in 2026 as investors rotate away from overvalued mega-cap tech stocks. Five small-cap stocks are highlighted as potential opportunities: Gorman-Rupp (pump systems), Ultra Clean Holdings (semiconductor supplies), Select Water Solutions (water management), Evolv Technologies (AI security), and Wolverine World Wide (footwear).

Insights
SAP   neutral

Mentioned as part of a new integration, with no specific positive or negative context


GRC   positive

Up 29% in 2025 with steady YOY revenue and earnings growth expected to accelerate in 2026. Analysts forecast 13.6% earnings growth with 19% upside potential. Dividend King status with 52 consecutive years of dividend increases.