Buy 5 Small-Cap Stocks on a Rally in 2025 Set for More Gains in 2026

Key Takeaways Small-cap stocks have rebounded in 2025 amid Fed rate cuts, lifting benchmarks like the Russell 2000. Lower borrowing costs support thin-margin small firms, boosting the growth potential of small businesses.Earnings estimates for ALLT, SHIP, ISBA, OWLT and IDN have risen, underscoring momentum heading into 2026.Small-cap stocks have rebounded this year supported by a low-interest-rate regime adopted by the Fed. The central bank reduced the benchmark lending rate by 1% in 2024 and another 0.5% ...