Top small-cap stocks to watch in 2026

What are small-cap stocks?

Small-cap stocks are the shares of companies with a market capitalisation of between US$250 million and US$2 billion.

They’re smaller than mid-cap and large-cap companies, and often represent businesses in the early stages of their growth – and those in emerging industries.

Advantages of small-cap stocks

There are numerous pros to trading small-cap shares. Here are a few of the more important ones:

• Growth potential: Smaller companies have greater room for expansion
• Diversification: Small-cap businesses tend to operate in up-and-coming sectors, offering stock traders a good way to diversify their portfolios. This also means you have access to innovation
• Potentially higher returns: Small-cap stocks can be a high-risk, high-return strategy
• Undervalued opportunities: Because analysts and institutional investors tend to spend less time looking at small-cap stocks compared to larger ones, you might find a good opportunity with an undervalued stock

Disadvantages of small-cap stocks

There aren’t just benefits to trading small-cap stocks. Here are some of the pitfalls to watch out for:

• Higher volatility: Unlike their larger, more established counterparts, small-cap stocks tend to be quite a lot more volatile. This is often due to their limited resources, so what they choose to spend these on greatly affects their performance and share price
• High risk: Because they’re not yet established, small-cap stocks pose a higher risk for stock traders
• Lower liquidity: Small-cap shares tend to be less frequently traded, which makes them less liquid than larger companies 

Top 5 small-cap stocks to watch in 2026

We’ve chosen our five stocks to stretch across sectors – AI in healthcare, oil and natural gas, banking, real estate and investment trusts, as well as for:

• Expansion and evolution into new markets, indicating excellent potential for future growth
• High-growth sectors, such as AI
• Long-term contracts that provide recurring business – offering some degree of predictability in cash flow
• Companies in sectors that can withstand economic downturns

Overview of the stocks in this article

All five stocks are available to trade via CFDs with IG UAE, whereas all stocks except Ho Bee Land can be traded via non-leveraged stock trading with us.

All figures are accurate as of 25 February 2026.

1. Ho Bee Land Limited (SGX: H13)

Industry: Real estate investment trusts

Market cap: S$1.66 billion¹

Ho Bee Land Limited is a Singapore-based real estate developer and investor that creates residential, commercial and industrial properties across Asia, Europe and Australia.

Its projects range from luxury homes in Singapore’s Sentosa Cove to Grade A office developments and biomedical life-sciences facilities in key global cities. The company earns money by selling newly built properties and collecting rent from investment properties.

Over the past six months, Ho Bee’s stock price has shown resilience despite wider market uncertainties in real estate. Its assets in Singapore and London continue to generate rental income, and activities such as issuing green bonds and strategic property stake sales suggest the company is managing its capital prudently.

Why stock traders might like it:
Stock traders might like Ho Bee for its diversified property portfolio, exposure to several fast-growing real estate markets and a record of developing high-quality projects that attract long-term tenants and buyers. Those qualities can support steady returns over time.

Why CFD traders might like it:
CFD traders might find Ho Bee appealing because property stocks can show clear reactions to macroeconomic factors, such as interest rate changes, property cycles and foreign investment flows, offering short-term trading opportunities.

Highlights:

• Appealing to long-term stock traders for income and capital potential and to CFD traders for volatility linked to market trends
• Its stock price has increased by 12.50% over the past six months²

2. East West Banking Corp (PSE: EW)

Industry: Regional banks

Market cap: ₱30.15 billion³

East West Banking Corporation is one of the Philippines’ leading universal banks, offering a broad range of financial services, including savings and current accounts, personal and business loans, credit cards, treasury and trust solutions, and digital banking services. It serves retail clients, corporates and small- and medium-sized enterprises.

In the past six months, the bank has reported steady growth in core earnings and expansion of its loan book, with revenues and net income rising on the back of strong consumer lending and deposit growth. It has also maintained a healthy capital base and improved operational efficiency, reflecting resilience in a competitive banking landscape.

Why stock traders might like it:
Stock traders might be drawn to East West due to its consistent profitability, solid return on equity, dividend potential and exposure to the Philippines’ expanding economy, where growing consumer demand for credit can support long-term earnings growth.

Why CFD traders might like it:
For CFD traders, East West’s share price movements tend to reflect changes in local economic conditions, interest rate expectations and banking sector sentiment. These factors can produce tradable price swings on shorter timeframes.

Highlights:

• Well-established bank with improving financial metrics, attractive to buy-and-hold stock traders for income and growth prospects, and to CFD traders for the potential trading opportunities driven by macroeconomic and sector developments
• Its stock price has grown by 12.71% over the past six months⁴

3. PrimeEnergy Resources Corporation (Nasdaq: PNRG)

Industry: Oil and gas production

Market cap: US$300.38 million⁵

PrimeEnergy Resources Corporation is a Philippines-based energy company focused on the exploration, development and production of oil and natural gas.

Its core assets are offshore service contracts, where it works with partners to extract hydrocarbons used for power generation and industrial activity. The company plays a role in supporting domestic energy supply, which is particularly important for a country that relies heavily on imported fuel.

Over the past six months, PrimeEnergy’s stock price has reflected shifting sentiment around energy security, commodity prices and project developments. Like many smaller energy producers, it has moved in response to oil and gas price trends as well as news related to production levels and government policy. Volatility has been a noticeable feature of its recent trading pattern.

Why stock traders might like it:
Stock traders might be interested in PrimeEnergy for its exposure to domestic gas production in a region where energy demand continues to grow.

If production remains stable and commodity prices are supportive, the company could benefit from stronger revenues and cash flow.

It also offers targeted exposure to the Philippine energy sector, which may appeal to those seeking regional diversification.

Why CFD traders might like it:
CFD traders may find PrimeEnergy attractive because energy stocks often react quickly to changes in global oil and gas prices, geopolitical developments and local regulatory updates. These factors can create short-term price swings that active traders look to capture.

Highlights:

• Offers focused exposure to Philippine oil and gas production, with potential upside tied to energy prices and domestic demand, alongside the volatility that can suit short-term trading strategies
• Its stock price has climbed 20.80% over the past six months⁶

4. Augmentum Fintech PLC (LSE: AUGM)

Industry: Investment trusts/mutual funds

Market cap: £146.20 million⁷

Augmentum Fintech PLC is a UK-based investment company that backs early-stage and growth-stage fintech businesses. Rather than operating a single business itself, it invests in a diversified portfolio of technology-driven financial services companies such as digital banks, payment platforms and specialised fintechs.

In the past six months, the performance of Augmentum’s portfolio has been mixed, reflecting the varied progress of the underlying companies it holds. Some portfolio companies have delivered strong commercial traction and growth, while others have required restructuring or seen slower progress, leading to a varied impact on the company’s valuation.

Why stock traders might like it:
Stock traders might like Augmentum because it offers exposure to high-growth fintech opportunities that are hard to access individually. Its diversified approach can spread risk across multiple promising fintech businesses.

Why CFD traders might like it:
CFD traders may be interested in the company because its share price can react significantly to news about fundraisings, exits, regulatory shifts in fintech or performance updates from its portfolio companies – creating potential volatility for trading.

Highlights:

• Fintech investor offering diversified exposure to innovative financial technology ventures, appealing to long-term growth-oriented investors and to CFD traders looking for cyclical moves linked to startup and tech-sector developments
• Its share price has increased by 23.58% over the past six months⁸

5. SOPHiA GENETICS SA (Nasdaq: SOPH)

Industry: Packaged software

Market cap: US$308.03 million⁹

SOPHiA GENETICS SA is a healthcare technology company headquartered in Switzerland.

It develops cloud-based software that helps hospitals and research institutions analyse genomic data to support cancer and rare disease diagnosis. By combining AI with genetic testing data, the company aims to improve clinical decision-making and personalise treatment for patients around the world.

Over the past six months, it’s experienced uneven share price performance, reflecting broader market sentiment towards growth stocks and health technology companies. Updates on partnerships, new customer wins and product development have influenced trading, as stock traders weigh the company’s long-term potential against near-term challenges.

Why stock traders might like it:
Stock traders may be drawn to the company because of its exposure to the fast-growing field of precision medicine. As genomic testing becomes more common in healthcare systems, demand for advanced data analysis tools could increase.

The company’s recurring revenue model and expanding global footprint may also appeal to those looking for structural growth themes.

Why CFD traders might like it:
For CFD traders, SOPHiA GENETICS can offer volatility linked to earnings announcements, regulatory developments and news in the biotechnology and AI sectors. Smaller growth companies in innovative industries often see sharper price reactions to company updates.

Highlights:

• Sits at the intersection of healthcare and AI, offering long-term growth potential for stock traders and dynamic price movements that may suit active CFD traders
• Its stock price has grown by 34.32% over the past six months¹⁰

How to trade small-cap stocks with IG UAE

CFDs

1. Open a CFD trading account with IG UAE
2. Search for small-cap stocks on the IG platform
3. Decide whether to go long (buy) or short (sell)
4. Choose your position size
5. Set stop-loss and limit orders
6. Place your trade and monitor it

Stock trading

1. Open a stock trading account with IG UAE
2. Search for small-cap stocks
3. Choose the stock you want to buy – try our stock screener
4. Determine how many shares you want to purchase
5. Place your order
6. Monitor your investment and collect any dividends

FAQs about small-cap stocks

Footnotes
 

1. TradingView, February 2026
2. TradingView, February 2026
3. TradingView, February 2026
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10. TradingView, February 2026