Are you searching for the best growth stocks for 2026? Look no further than the Small Cap Improvers portfolio, a dynamic strategy designed to uncover undervalued stocks with high potential in the small-cap space. With a focus on value investing and capital appreciation, this portfolio targets companies showing significant improvement in fundamentals, offering a compelling sector ETF alternative for investors eyeing outsized returns. Boasting a diversification score of 86.9/100 across 12 holdings, it balances risk while targeting growth in key sectors like healthcare stocks (24%), industrials (18%), and energy (16%) for the Q1 2026 market outlook.
The stock selection in Small Cap Improvers highlights promising names like Fathom Holdings Inc (FTHM) in real estate, Armstrong World Industries Inc (AWI) in industrials, and China Natural Resources Inc (CHNR) in basic materials, each holding around 10% of the portfolio. Other top picks include Align Technology Inc (ALGN) and Alkermes Plc (ALKS) in the healthcare sector, Vaalco Energy Inc (EGY) and Dorian LPG Ltd (LPG) in energy, and Aeries Technology Inc (AERT) in industrials. These companies are chosen for their current valuation upside, innovative approaches, and potential to outperform in the 2026 market outlook, making them some of the best small-cap stocks to buy now. However, investors should note the inherent volatility of small-cap investments and sector-specific risks, such as regulatory changes in healthcare or commodity price swings in energy and basic materials.
Tailored for aggressive growth investors and those seeking alternatives to passive income portfolios, Small Cap Improvers is ideal for anyone looking to build wealth over the medium term. Whether you’re a beginner investor or a seasoned player, this portfolio offers a unique chance to tap into undervalued growth stocks before they surge in 2026.