Small-cap stocks are one of the last places regular investors still have an edge.
They’re too small for the BlackRocks and Berkshires of the world to take meaningful positions—so the market’s biggest players often ignore them.
That creates a window of opportunity for individual investors to get in early… before these companies graduate to mid-cap status and the rest of the world takes notice.
We’ve identified five small-cap stocks that meet Buffett-style quality standards—but are still off the radar for large funds.
Here’s what’s inside the free report:
- One company grew revenue 120% in the last year and just secured contracts with 5 Big Tech firms
- Another just received the greenlight to build a $204 million infrastructure project in the U.S.
- One stock is profiting from the growth of ad-supported streaming—its clients include Disney and Netflix
- Another just partnered with AWS to roll out AI-driven analytics
- And one is betting big on automation to disrupt the restaurant business
You don’t need to gamble on penny stocks or guess on moonshots.
These are real businesses with real momentum—and they’re still priced for value.
👉Click here to get your free copy of this report
Don’t wait until they’re too big for Buffett… and too expensive for you.
Can Analog Devices Really Hit $400 This Year?
Submitted by Thomas Hughes. First Published: 2/18/2026.
Key Points
- Analog Devices has a strengthening tailwind from end-market normalization and data center demand.
- Guidance is of "wow" quality and is likely to be cautious.
- Analysts are lifting price targets, pointing to fresh highs this year.
Analog Devices’ (NASDAQ: ADI) share price could easily top $400 this year, driven by a rapidly swelling outlook after a fiscal Q1 2026 earnings report that strengthened investor confidence.
End-market normalization is turning into a strong tailwind as AI boosts datacenter and broader semiconductor demand. For ADI investors, that translates into sustained, accelerating growth, wider margins, and improved cash flow to support its healthy capital return program.
Analog Devices Reports 4th Quarter of Accelerating Growth: Guidance Wows
ALERT: Drop these 5 stocks before the market opens tomorrow! (Ad)
The Wall Street Journal is asking whether a stock market crash is coming. Research from Weiss Ratings suggests the first half of 2026 could be very tough for certain stocks as a radical shift hits the market. Some of America's most popular names could take serious damage. Analysts have identified five stocks you should consider avoiding before this event plays out. If these are in your portfolio, you'll want to review your positions carefully.
See the five stocks to avoid and learn what's driving this shift.Analog Devices reported a strong quarter, with growth across all end markets. The company posted $3.16 billion in net revenue, a 30.6% year-over-year (YOY) increase that outpaced consensus by 130 basis points. Segmentally, Industrial and Communications (which houses the data-center business) led with gains of 38% and 63%, respectively.
Automotive was the weakest link, up 8%, but it is expected to strengthen over time. Consumer grew by an impressive 27%.
Margin performance was a highlight. The company materially widened both GAAP and adjusted margins: adjusted gross margin improved by 240 basis points and adjusted operating margin improved by 500 basis points, driving a 52% increase in adjusted earnings and robust free cash flow.
Operating cash flow improved by 43% on a trailing 12-month basis, while free cash flow rose 39% to more than $4.5 billion.
The strength in free cash flow is critical because it enables reinvestment and capital returns while maintaining a healthy balance sheet.
Guidance was also robust and drove the market reaction. The company’s forecast for Q2 revenue and earnings came in significantly above consensus at the low end of the range, suggesting at least a 500-basis-point outperformance in the upcoming quarter and more than 1,000 basis points at the high end. Based on the results and clear momentum, the company is likely to perform at the high end of its range or even outperform guidance.
Analog Devices Capital Return Is Dialing in on Dividend Aristocrat Status
Analog Devices' capital return program is notable for its history of dividend increases. The company announced its 22nd consecutive annual increase alongside its fiscal Q1 release, sustaining a low-double-digit distribution CAGR and putting it on track to become a Dividend Aristocrat by decade’s end. (Note that the company's fiscal reporting period does not align with the calendar year.)
Inclusion in the Dividend Aristocrats index would likely increase buy-and-hold ownership and reduce volatility. Until then, the dividend appears sustainable at less than 50% of the earnings outlook and yields a market-average 1.15% at the pre-release close.
Share repurchases are also significant. Q1 buybacks reduced the share count by about 1.4% year over year in the quarter and are expected to continue at a similar pace. The balance sheet shows no red flags: cash and current assets increased, long-term debt declined, and equity remained steady. Leverage is modest, with cash up roughly 16% year-to-date, long-term debt about 2.5x the cash balance and about 0.2x equity.
Analysts Trends Drive Analog Devices’ Market Sentiment
The initial analysts’ response to Analog Devices’ fiscal Q1 report has been broadly bullish, sustaining the trend. Price-target increases from Stifel Nicolaus and Cantor Fitzgerald pushed the stock toward the high end of the target range, with Cantor’s $400 target aligning with the current high. That target implies roughly 18% upside from the pre-release high and could be reached before the second half of the year.
MarketBeat data reveals strong coverage, with 29 analysts tracked—up from the prior year—alongside a firming Moderate Buy rating and rising price targets.
Institutional activity also looks constructive. While institutional selling increased over the past 12 months, the quarterly balance remained positive throughout the year and continued to trend bullish in early 2026.
In the first six weeks of 2026, buyers acquired more than $1.50 for each $1 of sales, a tailwind for the stock given its roughly 87% institutional ownership rate.
Short sellers do not appear to pose a major risk. Short interest is low—below 2%—and was declining as of early February.
Analog Devices Rockets Higher on Strong Results
Analog Devices’ stock surged more than 5% in premarket trading following the release, reflecting investor surprise at the results and guidance. The move suggests the rally could continue, though a risk remains that profit-taking could cap near-term gains. In that case, ADI may consolidate at new highs or experience a modest pullback before attempting to set fresh highs.
This email communication is a sponsored email for TradingTips, a third-party advertiser of MarketBeat. Why did I receive this email message?.
If you have questions about your newsletter, please email MarketBeat's South Dakota based support team at contact@marketbeat.com.
If you would no longer like to receive promotional emails from MarketBeat advertisers, you can unsubscribe or manage your mailing preferences here.
© 2006-2026 MarketBeat Media, LLC. All rights protected.
345 N Reid Place #620, Sioux Falls, South Dakota 57103-7078. United States of America..
No comments:
Post a Comment