Top 5 ASX small-cap shares to watch in 2026

What are small-cap shares?

Small-cap shares are the stocks of publicly listed companies that have a market capitalisation of between A$250 million and A$2 billion – in the Australian market. In the US market, which is bigger, USD is used to denote the size of a company.

Market capitalisation (or market cap) is calculated by multiplying the current share price by the number of outstanding shares in the company.

While they involve greater risk than their large-scale peers, small-cap shares also bring the promise of more lucrative rewards, given their higher growth potential as modest-sized companies.

As a result of this smaller size, they’re often overlooked by both institutional and retail share traders – especially given that players such as mutual funds will only invest in companies that have exceeded a certain market cap threshold.

Small-cap stocks are also often overlooked by pundits and financial reporters, who prefer instead to focus on bigger companies with higher profiles and much larger market values.

Why trade ASX-listed small-cap shares?

Share traders should consider giving some attention to ASX-listed small-cap shares, given how their modest scale comes with potential advantages. By definition, they have far greater growth potential than large-scale companies that may have already maxed out in size. For this reason, small-cap shares have the potential to deliver greater capital gains.

The ASX is teeming with small-cap shares, such as in the resources, industrials, telecommunications, healthcare and real estate sectors.

The ASX 200 is heavily weighted toward Financials and Materials. If you only invest in large-cap shares, your portfolio is mostly banks and iron ore miners. The small-cap sector (often tracked by the Small Ordinaries Index) provides a much broader exposure to the Australian economy, including:

• Information technology: Australia has a thriving scene of smaller software and fintech firms that are not yet large enough for the main index
• Agriculture: Many listed agricultural and food production businesses sit in the small-cap bracket
• Consumer services: Local brands in travel, entertainment and specialised retail often call this sector home

Risks of trading ASX small-cap shares

Share traders should also remain aware of the risks that accompany the greater growth potential of small-cap shares. These include higher volatility during periods of market uncertainty and lower liquidity due to a smaller pool of interested buyers and sellers.

Smaller, fledgling companies can also be riskier as opposed to larger companies, given they may not have established markets or access to favourable financing terms.

Top 5 ASX small-cap shares to watch in 2026

Despite the comparative lack of attention given to them, most of the roughly 2,000 companies that are listed on the ASX are categorised as small-cap shares. The benchmark indicator for the ASX small-cap share market is the S&P/ASX Small Ordinaries Index (ASX: XSO), which is designed to measure companies included in the S&P/ASX 300 but not in the S&P/ASX 100.

Overview of the shares in this article

Through us, all the shares on this list can be traded via CFDs and share traded by buying the underlying stocks.

All figures are correct as of 31 March 2026.

1. Kogan.com Limited (ASX: KGN)

Industry: Retail trade

Market cap: A$350.61 million¹

Kogan is one of the most recognisable online retailers in Australia. Its business model is built on offering a huge variety of products ranging from televisions and mobile phones to household appliances and toys.

It makes money by selling these goods directly to consumers through its website. The company also has a popular membership programme where a customer pays a fee to get access to a special discount and free shipping which helps keep people coming back to shop.

In the past six months the company has focused on making its operations more efficient. It’s been working hard to manage its stock levels better, so it doesn’t have too much money tied up in unsold items.

There has also been a focus on growing its advertising platform which allows another brand to promote a product on the Kogan website. This shift toward service-based income is a key part of its recent strategy to improve its overall financial health.

Highlights:

• A CFD trader might find Kogan attractive because the share price can be quite sensitive to retail data and a consumer spending report
• A long-term share trader may like the company because it’s a leader in the digital shopping space. It’s a solid option for someone who believes that online retail will continue to take market share away from traditional physical stores
• Over the past six months, its share price has increased a modest 2.66%, but has offered plenty of short-term trading opportunities during that time²

2. Wagners Holding Co Limited (ASX: WGN)

Industry: Non-energy minerals

Market cap: A$800.89 million³

Wagners is a construction materials and services company based in Queensland. Its business model revolves around producing essential building blocks like cement, concrete or steel for large infrastructure projects. It also provides transport and heavy equipment services to the mining and construction industries.

One of its most innovative areas is the development of environmentally friendly concrete which uses less carbon during the manufacturing process compared to a traditional method.

Recently the company has seen success by securing several large infrastructure contracts. This has kept its core business busy as it supplies materials for bridges, roads or tunnels. It has also continued to promote its sustainable concrete product to an international market as more construction firms look for a way to reduce their impact on the environment. This focus on green technology has become a central part of its public identity over the last six months.

Highlights:

• This share could suit a share trader who wants exposure to the Australian building and infrastructure sector
• For a CFD trader, the stock can offer an opportunity when the company announces a major new contract win or a partnership. The share price often moves based on the outlook for the broader construction industry and a change in the cost of raw materials
• Its share price has risen by 59.77% over the past six months⁴

3. Superloop Limited (ASX: SLC)

Industry: Telecommunications

Market cap: A$1.65 billion⁵

Superloop is a telecommunications company that provides high-speed internet services across Australia and parts of Asia. Its business model involves owning and operating its own fibre-optic cable networks, which allows it to sell internet and data services to homes, businesses and other large companies.

By owning the infrastructure itself the company can often offer more competitive pricing and better control over the quality of the connection compared to a provider that has to rent space on other networks.

In the last six months, the company has made significant progress by winning massive new contracts with major Australian brands. This period of rapid growth has been a major focus for the business as it integrates these new users and scales up its operations to handle the increased demand for its data services. The expansion of its network reach has been a key theme for the business recently.

Highlights:

• For a CFD trader this share is often a popular choice because it can be quite sensitive to news about a new wholesale deal or partnership announcement. Such an event can trigger a quick price change that is useful for short-term trading
• A share trader may see value in the company because it is building a solid base of recurring income from its growing customer list. It is an option for those who want exposure to the essential and growing demand for digital connectivity
• It’s seen its fair share of volatility in its stock price over the past six months, with the value dipping by 8.71%, but up 24.52% year-to-date⁶

4. Metals X Limited (ASX: MLX)

Industry: Non-energy minerals

Market cap: A$1.14 billion⁷

Metals X focuses on the production and exploration of tin. Its business model involves operating a mine where it extracts the metal and then processes it to be sold to a global market. Tin is an important material because it’s used in solder for electronics like smartphones or EVs.

The company aims to run a low-cost operation so it can remain profitable even if the price of the metal fluctuates on the world market.

The last six months have been an active period for the company as it focused on increasing the efficiency of its main mining operation. It’s also been exploring a nearby area to try find more tin to extend the life of its mine. Because tin is so vital for modern technology the company has benefited from a general interest in a metal needed for the global transition to cleaner energy and advanced electronics.

Highlights:

• For a CFD trader Metals X is a classic choice because the share price is often tied directly to the daily price of tin
• A share trader might prefer this company due to the long-term demand for electronics and green tech. It’s a more focused way to invest in the mining sector without buying into a giant diversified firm
• It’s had a solid six-month history, hitting share price growth of 59.75% in this time to date⁸

5. Nanosonics Limited (ASX: NAN)

Industry: Health technology

Market cap: A$1.12 billion⁹

Nanosonics is a healthcare company that specialises in preventing infections in hospitals. Its business model centres on a unique device used to disinfect ultrasound probes. Instead of using old-fashioned manual cleaning methods, these machines provide a high-level automated disinfection process. This makes it much safer for patients and more efficient for hospital staff.

The company also makes a steady income by selling the special chemical and accessory that the machine needs to function every day.

Over the last six months, the company has focused on launching a new version of its technology and expanding into a new geographical region. It’s also been working on developing a new type of disinfection product that can be used for a different medical tool. This effort to diversify its product range aims to make the company less dependent on just one device and ensure it can grow over the long term as hospital standards improve.

Highlights:

• Share traders often view Nanosonics as a high-quality growth company because it has a dominant position in its specific market
• CFD traders might look for a price swing around the time of a major product launch or when the company releases an update on how many new machines it has installed globally
• Another one that has offered decent volatility in recent months; the share price has decreased by 13.39% over the past six months, but is up 13.64% over the past month¹⁰

How to trade small-cap shares with IG AU

CFDs

1. Open a CFD trading account with IG AU
2. Search for ASX small-cap shares 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

Share trading

1. Open a share trading account with IG AU
2. Search for ASX small-cap shares
3. Choose the shares you want to buy
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 shares 

Footnotes
 

1. TradingView, March 2026
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