Best small-cap stocks to invest in 2026

Small-cap stocks offer a unique investment opportunity, blending potential for significant growth with exposure to emerging trends across various industries. These companies often cater to niche markets, making them a valuable addition to a diversified portfolio.

Aryt Industries designs and manufactures electronic fuzes and detonators for defense programs, delivering certified reliability, precision, and mission assurance for allied forces. Zedcor provides remote monitoring and mobile surveillance solutions for energy infrastructure, helping operators improve safety, reduce costs, and protect critical assets. SKS Technologies Group delivers engineering services and digital transformation for industrial clients across Europe, integrating IoT, automation, and software development to modernize operations.

Investing in small-cap stocks can unlock opportunities for growth and innovation. Explore our expert analysis of the best small-cap stocks to invest in 2026, and discover how these companies could strengthen your long-term financial goals.

Roboforex R-Trader gives you access to over 10,000 stocks, ETFs, commodities, and crypto. All of the stocks mentioned in this article are available for purchase there.

Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in stocks mentioned in this article.

Now, let`s take a closer look at each of the companies:

• Aryt Industries (TA:ARYT)

  Aryt Industries Ltd. is an Israel-based defense technology company that designs and manufactures electronic fuses and detonators for artillery, armored platforms, and aerospace applications. Founded in 1979, Aryt has evolved through specialization in precision fuze electronics and safety-critical systems for military customers and allied partners. The company benefits from rising modernization programs and sustained demand for mission reliability across munitions and defense platforms globally today.

  Aryt`s operations focus on proximity, time, and programmable fuzes and supporting electronics that meet stringent certification standards for lethality, safety, and interoperability. The company serves Israel`s defense industry and international partners through subcontracting, integration support, tailored engineering, and testing efforts across programs. With mission-critical products aligned to defense procurement cycles, Aryt seeks durable growth through technology upgrades, export opportunities, and portfolio extensions.

  Aryt Industries financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): 27.69%
  • Return on equity (ROE): 90.24%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 61.37%
  • Operating margin: 54.67%
  • Net profit margin: 59.31%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 1.44
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): 1518.3%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 430.6%

  💡 Why invest in Aryt Industries?

  Aryt aligns specialized munitions electronics with mission reliability and safety for defense platforms and procurement programs:

  • Defense Fuse Leadership: Aryt specializes in proximity, time, and programmable fuse electronics for artillery and armored platforms, delivering certified performance and reliability that strengthens positioning in defense modernization programs.
  • Proven Military Integration: Established integration with Israeli defense primes and end users enhances validation, lifecycle feedback, and iteration cycles that improve readiness, interoperability, and mission assurance across platform families.
  • Specialized Engineering Expertise: Deep domain knowledge in safety‑critical systems creates barriers to entry, enabling premium pricing for certified solutions and strengthening margins through high‑value electronics for programs and variants.
  • International Market Opportunities: Export channels and subcontracting partnerships provide access to allied markets, increasing demand and enabling growth beyond domestic programs while diversifying revenue sources across contracts.

  🐌 Key considerations before investing in Aryt Industries

  Aryt faces budget dependence, export constraints, product concentration, and certification timelines, creating execution risks:

  • Defense Budget Dependence: Revenue depends on procurement cycles, budget priorities, and program timing, exposing results to policy shifts, election outcomes, and allocation changes that affect volumes and margin cadence across periods.
  • Geopolitical Export Risks: International sales face export controls, end‑use restrictions, and geopolitical tensions that can delay approvals or limit market access, requiring resilient compliance frameworks and diversified relationships.
  • Product Concentration Exposure: Concentration in fuse electronics and limited adjacent scope increases vulnerability to program changes, necessitating portfolio expansion and sustained R&D to broaden demand and reduce single‑line dependence.
  • Technology Certification Timelines: Safety‑critical systems require rigorous qualification and testing cycles that extend development timelines, elevate costs, and create schedule risk for new variants without near‑term production certainty.

  Final thoughts on Aryt Industries

  Aryt Industries' specialization in certified munitions electronics, proven military integration, and export opportunities positions it to benefit from defense modernization and mission readiness priorities. Yet exposure to budget cycles, geopolitical constraints, and product concentration requires prudent planning and portfolio development across markets and platforms. For investors seeking targeted defense electronics exposure, Aryt offers a focused, mission‑critical niche with disciplined growth potential for long‑term portfolios.

• Zedcor (V:ZDC)

  Zedcor Inc. is a Canadian technology and services company specializing in providing innovative solutions to the energy sector, particularly in oil and gas operations. Founded in 1999 and headquartered in Calgary, Alberta, the company has established itself as a leader in remote monitoring and surveillance technologies for energy infrastructure. Zedcor`s solutions help energy companies optimize operations, enhance safety, reduce environmental impact, and support regulatory compliance through advanced technological applications.

  The company`s core business focuses on providing comprehensive monitoring services, including remote surveillance systems, environmental monitoring, and data analytics for energy operations. Zedcor serves major oil and gas companies across North America, offering specialized equipment and services that enable real-time monitoring of critical infrastructure and operations. Through continuous innovation and strategic partnerships, Zedcor continues to expand its technological capabilities and market presence in the evolving energy services sector.

  Zedcor financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): 3.27%
  • Return on equity (ROE): 3.57%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 63.78%
  • Operating margin: 4.89%
  • Net profit margin: 3.1%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 0.02
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): -62.1%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 75%

  💡 Why invest in Zedcor?

  Zedcor delivers remote monitoring for energy infrastructure, enabling safer, compliant operations across North America today:

  • Advanced Technology Leadership: Zedcor`s advanced remote monitoring and surveillance technologies provide competitive advantages in serving energy companies` evolving operational, safety, and compliance requirements across North America.
  • Critical Essential Services: The company provides critical monitoring services that help energy companies comply with environmental regulations, enhance safety protocols, and optimize operational efficiency in remote, harsh locations.
  • Strategic Market Expansion: Growing demand for environmental monitoring, safety compliance, and operational optimization in the energy sector creates significant opportunities for Zedcor`s specialized service offerings across North American basins.
  • Stable Recurring Revenue: Zedcor`s service-based business model generates recurring revenue streams through ongoing monitoring contracts and equipment rentals with energy sector clients, supporting cash flows and client relationships.

  🐌 Key considerations before investing in Zedcor

  Zedcor faces energy‑sector reliance, small‑scale limits, rapid tech shifts, and North American focus that pressure growth:

  • Energy Sector Dependence: Heavy reliance on the oil and gas industry exposes the company to commodity price volatility, regulatory changes, and cyclical downturns that characterize volatile energy markets and demand cycles across core basins.
  • Small Scale Constraints: As a smaller technology services company, Zedcor faces challenges related to limited financial resources, market visibility, and competitive pressures from larger, well-established service providers in core regions.
  • Rapid Technology Evolution: Rapid technological advancement in monitoring and surveillance systems requires continuous investment in research and development to maintain competitive positioning and avoid obsolescence risks for competitive parity.
  • Regional Geographic Concentration: The focus on North American energy markets creates geographic concentration risk and limits diversification opportunities in other regions or sectors, and reduces exposure to alternative markets during downturns.

  Final thoughts on Zedcor

  Zedcor`s specialized technology solutions, essential service offerings, and strategic positioning in energy monitoring create compelling opportunities for investors seeking exposure to energy technology innovation. The company`s technological leadership, recurring revenue model, and market expansion potential provide competitive advantages in serving evolving energy sector needs. However, investors should weigh energy reliance, small-company scale, technology evolution, and geographic concentration when evaluating Zedcor`s long‑term growth potential over time.

• SKS Technologies Group (AX:SKS)

  SKS Technologies Group AG is a German technology company specializing in engineering services, software development, and digital transformation solutions for industrial clients across Europe. Founded in 1994 in Germany, the company provides technical consulting, product development, and digital engineering services to automotive, aerospace, and industrial manufacturers. It has grown through acquisitions and expanded digital capabilities, positioning itself as a trusted key partner for Industry 4.0 initiatives.

  The company operates through multiple business segments including engineering consulting, software development, digital transformation services, and technical staffing solutions and capabilities. SKS Technologies Group provides end‑to‑end engineering solutions from concept to production, leveraging AI, IoT, automation systems, and data analytics platforms. The company serves diverse industrial clients across Europe with a strong emphasis on digital transformation and Industry 4.0 integration services.

  SKS Technologies Group financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): 14.59%
  • Return on equity (ROE): 76.47%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 52.85%
  • Operating margin: 8.04%
  • Net profit margin: 5.36%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 0.12
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): 67.3%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 76.3%

  💡 Why invest in SKS Technologies Group?

  SKS Technologies demonstrates strong competitive positioning in industrial electrical distribution and power technology solutions:

  • Industry 4.0 Positioning: SKS is positioned to capitalize on manufacturing digitalization with expertise in IoT, automation, and AI‑driven solutions, supported by domain knowledge and systems integration that meet reliability requirements.
  • Diversified Client Base: The company serves automotive, aerospace, and industrial manufacturing across Europe, providing diversification, cross‑sector learning, and pipeline stability while reducing dependence on any single end market.
  • Premium High-Value Services: Consulting and digital transformation work command premium pricing due to mission‑critical outcomes, measurable performance gains, and risk‑managed execution, supporting margins and durable relationships.
  • European Market Leadership: Positioning in German and European engineering enables access to well‑funded industrial clients and programs in advanced manufacturing and innovation, sustaining qualification advantages and repeat program participation.

  🐌 Key considerations before investing in SKS Technologies Group

  SKS Technologies Group faces talent competition, cyclical demand, tech shifts, and delivery strain that pressure margins, execution:

  • Skilled Talent Competition: Competition for skilled technical talent can drive wage inflation, elevate retention costs, and lengthen hiring cycles, straining project capacity during peak activity and concurrent ramps, complicating planning.
  • Cyclical Economic Sensitivity: Industrial clients may reduce consulting and engineering spending during economic downturns, making the company vulnerable to cyclical fluctuations in manufacturing investment and capital expenditure budgets.
  • Technology Evolution Risk: Rapid changes in digital tools require continual investment; delayed capability refresh can erode competitiveness and compress margins on complex projects, and increase risk when emerging standards shift mid‑execution.
  • Engineering Delivery Challenges: Complex engineering projects carry inherent risks of cost overruns, delays, and technical challenges that could impact profitability and client relationships, requiring strong project management capabilities.

  Final thoughts on SKS Technologies Group

  SKS Technologies Group combines specialized engineering expertise with digital transformation capabilities for industrial clients across Europe and adjacent markets, spanning complex programs and modernization initiatives. Its positioning in Industry 4.0 and premium consulting services supports attractive margins, recurring demand, and long‑term partnerships with leading manufacturers. Investors should consider talent competition, economic sensitivity, and technology evolution when evaluating this digitalization partner for manufacturing modernization across European markets.

• Valeura Energy (TO:VLE)

  Valeura Energy is a Canadian upstream oil and gas company focused on exploring, developing, and producing petroleum and natural gas primarily in Turkey. Founded in 2010 and based in Calgary, Valeura grew into a key Turkish energy player through acquisitions and successful drilling in the Thrace Basin. It achieved discoveries and built a sizable resource base using conventional and unconventional techniques, becoming a leading operator in Turkey’s onshore sector.

  Valeura focuses exploration and development in the Thrace Basin, holding acreage and achieving success in shallow conventional and deeper unconventional formations. Core work spans seismic acquisition, drilling, field development, and production optimization, with expertise in tight formations requiring advanced completion techniques. Rising demand and supportive policies, together with Valeura’s execution, position the company to benefit from energy security priorities and domestic growth.

  Valeura Energy financial statements

  Analysts recommendation: 2.1

  Financial Health

  • Return on assets (ROA): 17.7%
  • Return on equity (ROE): 57.15%
  • Return on investment (ROI): 11.7%

  Profitability

  • Gross margin: 71.95%
  • Operating margin: 29.3%
  • Net profit margin: 37.33%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 2.97
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): -50%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 12.3%

  💡 Why invest in Valeura Energy?

  Valeura`s focused operations and drilling success in the Thrace Basin form a compact, high‑conviction resource story for investors:

  • Turkish Market Leadership: Valeura`s established position and acreage in the Thrace Basin give privileged access to high‑potential exploration targets and operational leverage for long‑term investors across domestic energy markets today.
  • Proven Discovery Track: A string of successful drilling campaigns and disciplined technical execution demonstrates Valeura`s geological capability and increases the odds of repeatable resource additions from exploration programs over time.
  • Turkish Policy Tailwinds: Turkey`s emphasis on domestic production to bolster energy security can translate into supportive permitting and pricing dynamics for local producers and improved cash flow generation during investment cycles.
  • Operationally Efficient Operations: Lean on‑the‑ground operations, localized supply chains, and focused capital programs help Valeura maintain competitive production costs and preserve margins during commodity volatility and equipment constraints.

  🐌 Key considerations before investing in Valeura Energy

  Valeura Energy faces Turkish exposure, geology risk, commodity sensitivity, and limited diversification across assets and regions:

  • Turkish Country Risk: Heavy dependence on Turkish operations exposes Valeura to regulatory shifts, political volatility, and currency moves that can affect permitting processes and project returns across cycles, including permitting timelines.
  • Geological Exploration Uncertainty: Exploration activities inherently carry geological risk; wells may fail to deliver commercial volumes, reducing reserve growth prospects and pressuring future funding requirements for sustained programs.
  • Energy Commodity Sensitivity: Valeura`s revenues and project economics are sensitive to oil and gas price swings; prolonged commodity weakness can compress operating margins and limit future reinvestment opportunities materially over cycles.
  • Geographic Limited Diversification: A tight geographic and asset footprint reduces diversification and increases exposure to localized operational disruptions and potential regulatory policy changes in Turkey`s domestic market today.

  Final thoughts on Valeura Energy

  Valeura`s disciplined exploration and acreage scale in the Thrace Basin underpin an attractive, high‑conviction small‑cap E&P story with tangible catalysts tied to drilling execution. That upside must be balanced with exploration risk, permitting complexity, and macro sensitivity to commodity prices that influence capital programs and returns. Investors should consider position sizing, country exposure, and operational risk management when prudently assessing Valeura for a diversified portfolio allocation.

• DroneShield (AX:DRO)

  DroneShield is an Australian publicly listed defense technology company specializing in counter‑unmanned aerial system (C‑UAS) solutions and protective electronic warfare capabilities. Founded in 2014 and headquartered in Sydney, the company operates in the United States and United Kingdom and serves customers across more than 70 countries. DroneShield focuses on protecting against unauthorized drone incursions using advanced detection, tracking, neutralization, response, and mitigation technologies for mission‑critical environments.

  The company`s core business develops and manufactures advanced C‑UAS solutions that integrate radio frequency sensing, artificial intelligence, machine learning, sensor fusion, and electronic warfare capabilities. DroneShield`s product portfolio includes devices like the DroneGun Tactical and DroneGun Mk4, designed to detect, track, and neutralize unauthorized drones. These solutions are utilized by military, government, law enforcement, and critical infrastructure entities worldwide to protect against evolving drone threats.

  DroneShield financial statements

  Analysts recommendation: N/A

  Financial Health

  • Return on assets (ROA): -1.29%
  • Return on equity (ROE): 2.22%
  • Return on investment (ROI): N/A

  Profitability

  • Gross margin: 67.62%
  • Operating margin: 1.75%
  • Net profit margin: 5.23%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 0.01
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): -82.4%
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): N/A
  • Sales growth (past 5 years): N/A
  • Sales growth (quarter-over-quarter): 210.1%

  💡 Why invest in DroneShield?

  DroneShield pairs innovation, profitable growth, and domestic manufacturing to deliver resilient, scalable counter‑drone systems:

  • Counter-Drone Market Leadership: As the only publicly listed company globally with a pure-play focus on the counter-drone sector, DroneShield offers unique exposure to this rapidly expanding market with significant growth potential.
  • Strong Financial Turnaround: DroneShield posted its first profitable year with $9.3 million profit and $57.9 million cash, reflecting disciplined execution, cost control, and strengthening unit economics across core counter‑drone programs.
  • Strategic Government Partnerships: The company has secured significant contracts, including a $9.7 million order from a major Latin American military customer and $11.8 million in Asia‑Pacific, driving pipeline visibility and program momentum.
  • Domestic Manufacturing Focus: Prioritizing local production reduces reliance on international supply chains and enhances operational resilience, quality assurance, and delivery certainty amid global uncertainties and supply disruptions.

  🐌 Key considerations before investing in DroneShield

  DroneShield faces contract concentration, regulations, tech rivals, and supply risks, pressuring margins, schedules, and growth:

  • Defense Contract Reliance: A substantial portion of revenue is derived from government and defense contracts subject to budget constraints, policy changes, lengthy procurement cycles, and re‑bid risk that can affect visibility and timing.
  • Regulatory Compliance Complexity: Operating in the defense sector requires export controls, security clearances, and rigorous compliance, with licensing timelines and approvals that can delay schedules and add workload across programs.
  • Competitive Technology Pressure: Despite leadership in counter‑drone technology, competition from defense firms and emerging approaches necessitates innovation investment and accelerating R&D cycles to sustain advantage and partnerships.
  • Supply Chain Risks: Despite local sourcing, critical components like microchips and batteries may require imports, exposing operations to supply chain disruptions, component lead times, and alternate qualification needs for continuity.

  Final thoughts on DroneShield

  DroneShield Limited stands out as a key player in the burgeoning counter‑drone industry, offering innovative solutions to address emerging security threats. Its strong financial performance, strategic contracts, focus on domestic manufacturing, and scalable production capacity position it favorably for future growth. However, potential investors should consider reliance on government contracts, regulatory challenges, and supply chain dependencies when evaluating investment opportunities and program timing.

• Norbit (OL:NORBT)

  Norbit ASA is a Norwegian technology company specializing in advanced sensor systems, underwater surveillance technologies, and defense solutions for maritime and military applications worldwide. Founded in 1995, the company evolved from a small electronics firm into a leading provider of defense and maritime technologies for NATO allies. The company has demonstrated strong growth in defense contracts, particularly in underwater surveillance systems and maritime security solutions for naval forces.

  The defense portfolio includes advanced sonar for submarine detection, underwater surveillance for naval operations, maritime security solutions, and specialized military sensor systems. Norbit`s products are integral to critical defense infrastructure including naval bases, underwater monitoring networks, and maritime border security systems used by allied forces. Rising focus on maritime security and underwater domain awareness positions Norbit to benefit from naval modernization and demand for advanced underwater surveillance capabilities.

  Norbit financial statements

  Analysts recommendation: 2.1

  Financial Health

  • Return on assets (ROA): 14.49%
  • Return on equity (ROE): 33.01%
  • Return on investment (ROI): 11.2%

  Profitability

  • Gross margin: 58.86%
  • Operating margin: 14.94%
  • Net profit margin: 16.7%

  Growth

  • EPS (past 5 years): 24.8%
  • EPS (current): 6.01
  • EPS estimate (next quarter): 14.2
  • EPS growth (this year): 47.3%
  • EPS growth (next year): 22.4%
  • EPS growth (next 5 years): 19.3%
  • EPS growth (quarter-over-quarter): 31.7%
  • Sales growth (past 5 years): 18.9%
  • Sales growth (quarter-over-quarter): 35.9%

  💡 Why invest in Norbit?

  Norbit shows compelling qualities that make it stand out in its market sector for potential long-term investors comprehensively:

  • Underwater Surveillance Leadership: Norbit leads in advanced sonar and underwater detection technologies for naval forces, creating specialized capabilities that are difficult to replicate and command premium pricing in defense markets.
  • Maritime Security Growth: The company benefits from increasing global focus on maritime security, underwater domain awareness, and naval modernization programs driven by evolving maritime threats and geopolitical tensions, supporting demand.
  • NATO Defense Partnerships: Norbit serves NATO allies and international naval forces with critical underwater surveillance systems, providing stable revenue and opportunities for defense partnerships that support program continuity and collaboration.
  • Maritime Technology Moat: The company`s expertise in underwater acoustics, sensor fusion, and maritime surveillance creates significant barriers to entry and competitive advantages in niche defense applications, reinforcing adoption.

  🐌 Key considerations before investing in Norbit

  Before investing in Norbit, consider headwinds that could affect performance, execution, and returns in defense markets carefully:

  • Defense Spending Vulnerability: Heavy reliance on naval defense spending makes the company vulnerable to military budget cuts, changing procurement priorities, and delays in maritime modernization programs worldwide, and timing risks.
  • Market Size Limitations: Specialization in underwater surveillance creates market size constraints and limits growth opportunities compared to broader defense technology companies and diversified peers, scaled platforms in global programs.
  • Technology Development Risks: Rapid advancement in underwater detection technologies and autonomous systems could disrupt traditional sonar markets, requiring continuous R&D investment with uncertain returns and market positioning today.
  • Scale Resource Constraints: Limited resources compared to large defense contractors may constrain ability to compete for major programs and invest in next-generation technologies at required scale levels for global market expansion.

  Final thoughts on Norbit

  Norbit`s leadership in underwater surveillance, positioning in maritime security, and specialized defense capabilities offer targeted exposure to niche naval technology growth. Dependence on defense budgets, market size constraints, development risk, and scale limitations require measured expectations and careful evaluation of program execution. Match investment decisions to risk appetite and horizon, and monitor contracts, modernization programs, and funding to navigate evolving maritime defense dynamics.

• Hanza (ST:HANZA)

  Hanza Holding AB is a Nordic manufacturing partner providing electronics and mechanical production solutions to technology companies across medtech, cleantech, and industrial automation. Founded in 2008 in Stockholm, Sweden, the company built a manufacturing ecosystem through acquisitions and organic growth, with specialized facilities across Nordics and Central Europe. Hanza combines advanced capabilities with supply chain optimization and engineering expertise, making it a preferred partner for innovative companies seeking efficient local production.

  Core operations span electronics manufacturing services, mechanical production, and integrated supply chain solutions delivered through a cluster model that improves efficiency and reduces logistics costs. Facilities in Sweden, Finland, Estonia, Poland, and the Czech Republic serve clients in medical technology, clean energy, industrial automation, and telecommunications. Nearshoring, specialized production needs, and supply chain resilience trends position Hanza to help Nordic companies maintain competitive advantages through efficient local expertise.

  Hanza financial statements

  Analysts recommendation: 2

  Financial Health

  • Return on assets (ROA): 4.68%
  • Return on equity (ROE): 12.54%
  • Return on investment (ROI): 10.6%

  Profitability

  • Gross margin: 43.8%
  • Operating margin: 8.26%
  • Net profit margin: 3.64%

  Growth

  • EPS (past 5 years): 22.9%
  • EPS (current): 4.43
  • EPS estimate (next quarter): 13.8
  • EPS growth (this year): 87.8%
  • EPS growth (next year): 18.4%
  • EPS growth (next 5 years): 16.8%
  • EPS growth (quarter-over-quarter): 31.2%
  • Sales growth (past 5 years): 28.4%
  • Sales growth (quarter-over-quarter): 26.8%

  💡 Why invest in Hanza?

  Cluster‑based electronics and mechanical manufacturing with supply chains and engineering support define Hanza’s offering:

  • Cluster-Based Manufacturing Model: Hanza operates an innovative production cluster system that optimizes manufacturing efficiency, reduces logistics costs, and provides supply chain resilience through distributed facilities across sites and regions.
  • High-Growth Sector Focus: The company serves rapidly expanding industries including medtech, cleantech, and industrial automation, providing exposure to secular growth trends and premium pricing opportunities with reliable delivery expectations.
  • Nearshoring Trend Benefits: Hanza capitalizes on companies moving production closer to end markets, offering Nordic customers local alternatives with shorter lead times and improved supply chain reliability, improving responsiveness.
  • Strategic Acquisition Growth: The company has demonstrated acquisition integration capabilities, creating value through strategic purchases of complementary manufacturing businesses and expanded service offerings, supporting capabilities.

  🐌 Key considerations before investing in Hanza

  Hanza faces cycles, competition, integration strain, and cost inflation, pressuring pricing, execution, and resilient operations:

  • Client Dependency Risk: The company`s revenue depends on relationships with key customers in specialized industries, creating vulnerability to contract losses, customer consolidation, or strategic changes that impact volume commitments.
  • Cyclical Industry Exposure: Manufacturing services are subject to economic cycles and demand fluctuations, making revenue and profitability vulnerable to downturns in served industries and inventory adjustments, extending recovery timelines.
  • Integration Execution Challenges: Continued growth through acquisitions requires successful integration of diverse operations, cultures, and systems, with execution risks that could impact operational efficiency and project delivery.
  • Cost Inflation Pressures: Rising labor costs, energy prices, and raw material inflation can pressure margins if not passed through to customers successfully, requiring pricing discipline and contract management under fixed contracts.

  Final thoughts on Hanza

  Hanza`s cluster model, sector focus, nearshoring benefits, and acquisition expansion create attractive exposure to specialized manufacturing services for Nordic and European technology customers. Customer concentration, industry cyclicality, integration requirements, and cost inflation pressures require careful evaluation of operational execution and sustained margin management. For investors seeking resilient Nordic manufacturing partners, Hanza offers disciplined growth potential balanced against execution demands and evolving supply chain dynamics.

• Kraken Robotics (V:PNG)

  Kraken Robotics is a Canadian marine technology company developing underwater robotic systems, sensors, and software for defense, commercial, and scientific applications. Founded in 2008, the company has built expertise in autonomous underwater vehicles and sensing systems for ocean exploration and maritime security. Kraken aims to deliver reliable subsea intelligence, surveillance, and reconnaissance capabilities through proprietary technologies and integrated platform solutions for critical operations worldwide.

  Core operations include AUVs, synthetic aperture sonar, batteries, and software enabling seabed mapping, mine detection, and environmental monitoring for government and industry use. Customers span defense organizations, offshore energy firms, research institutions, and marine operators served through direct sales and strategic partnerships globally. Rising focus on ocean security, offshore energy activity, and marine research positions Kraken to benefit from growing demand for advanced underwater technologies.

  Kraken Robotics financial statements

  Analysts recommendation: 2.1

  Financial Health

  • Return on assets (ROA): 3.87%
  • Return on equity (ROE): 11.18%
  • Return on investment (ROI): 6.7%

  Profitability

  • Gross margin: 55.87%
  • Operating margin: 15.75%
  • Net profit margin: 16.17%

  Growth

  • EPS (past 5 years): 67.4%
  • EPS (current): 0.07
  • EPS estimate (next quarter): 0.15
  • EPS growth (this year): 41.1%
  • EPS growth (next year): 28.6%
  • EPS growth (next 5 years): 35.2%
  • EPS growth (quarter-over-quarter): 48.9%
  • Sales growth (past 5 years): 52.7%
  • Sales growth (quarter-over-quarter): 60.1%

  💡 Why invest in Kraken Robotics?

  Kraken Robotics pairs subsea robotics and synthetic aperture sonar with defense partnerships to drive growth in subsea intelligence:

  • Advanced Technology Portfolio: Kraken Robotics possesses proprietary underwater robotics and sensing technologies including synthetic aperture sonar and autonomous underwater vehicles that provide competitive advantages for mission-critical use.
  • Defense Market Exposure: The company serves military and defense customers with critical underwater surveillance and mine detection capabilities, providing access to stable government contracts and specialized markets, enabling resilient operations.
  • Growing Market Opportunities: Kraken Robotics benefits from expanding demand for ocean exploration, offshore energy support, and marine security applications driven by increasing focus on underwater intelligence across demanding environments.
  • Strategic Partnership Approach: The company leverages partnerships with larger defense contractors and marine technology companies to access broader markets, share development costs, and accelerate commercialization with strong reliability.

  🐌 Key considerations before investing in Kraken Robotics

  Kraken Robotics faces small scale, development risk, customer focus, and market cyclicality, affecting execution and returns:

  • Small Company Risks: As a relatively small technology company, Kraken Robotics faces challenges in competing with larger defense contractors and technology companies that have greater resources and established relationships, and scalability.
  • Technology Development Risk: The company operates in highly technical markets where product development requires significant R&D investment with uncertain outcomes, creating risks of technological obsolescence or development delays.
  • Customer Concentration Dependency: Revenue depends on relationships with key defense and commercial customers, creating vulnerability to contract losses, budget cuts, or changes in customer procurement strategies and priorities, procurement timing.
  • Market Volatility Exposure: The marine technology market can be cyclical and dependent on government defense spending, offshore energy activity, and research funding that can fluctuate based on economic and political conditions, over cycles.

  Final thoughts on Kraken Robotics

  Kraken Robotics` proprietary technology, defense exposure, expanding opportunities, and partnership strategy provide a compelling platform for subsea intelligence and marine robotics growth. Yet small scale, technical development risk, customer concentration, and market cyclicality warrant measured expectations and careful evaluation of program execution. Align investment decisions with risk appetite and horizon, and monitor contracts, deliveries, backlog, and funding to navigate the evolving underwater technology landscape.

• Natural Resource Partners (NYSE:NRP)

  Natural Resource Partners LP is a diversified natural resources company that specializes in the ownership and management of mineral rights and infrastructure assets worldwide. Founded in 2002 and headquartered in Houston, Texas, the company primarily focuses on leasing its properties for coal, aggregates, and other mineral extraction activities. Natural Resource Partners generates revenue through royalty-based agreements with a vast portfolio spanning multiple US states and long-term contracts with operators.

  The company manages mineral reserves including coal, industrial minerals, and oil and gas assets, while investing in transportation and infrastructure projects. Natural Resource Partners partners with industry operators to provide essential access to critical resources while minimizing environmental impact through sustainable practices. With a focus on long-term asset management and strategic diversification, the company continues supporting energy, construction, and industrial markets nationwide.

  Natural Resource Partners financial statements

  Analysts recommendation: 3

  Financial Health

  • Return on assets (ROA): 18.81%
  • Return on equity (ROE): 26.19%
  • Return on investment (ROI): 22.15%

  Profitability

  • Gross margin: 83.15%
  • Operating margin: 69.01%
  • Net profit margin: 66.38%

  Growth

  • EPS (past 5 years): N/A
  • EPS (current): 10.92
  • EPS estimate (next quarter): N/A
  • EPS growth (this year): N/A
  • EPS growth (next year): N/A
  • EPS growth (next 5 years): N/A
  • EPS growth (quarter-over-quarter): 13.75%
  • Sales growth (past 5 years): 3.1%
  • Sales growth (quarter-over-quarter): -1.54%

  💡 Why invest in Natural Resource Partners?

  Natural Resource Partners offers diversified mineral royalties and exposure, appealing to investors seeking resilient income:

  • Diversified Asset Portfolio: NRP boasts a diverse portfolio of mineral assets across the US including coal, industrial minerals, and aggregates, providing diversification that mitigates risk and caters to diverse industry needs across regions.
  • Carbon Capture Ventures: Recognizing the evolving resource landscape, NRP ventures into carbon capture and sequestration activities, offering climate change mitigation solutions and positioning for sustainable growth opportunities over time.
  • MLP Income Distribution: As a master limited partnership (MLP), NRP prioritizes distributing significant cash flow to investors, offering attractive regular income potential for income-seeking investment portfolios that align with climate priorities.
  • Experienced Management Team: NRP`s leadership team boasts extensive experience in the natural resource sector, providing valuable insights and strategic expertise for navigating complex industry dynamics and market challenges with strong execution.

  🐌 Key considerations before investing in Natural Resource Partners

  Natural Resource Partners faces commodity volatility, regulation, depletion risks, and competition, pressuring cash flow stability:

  • Commodity Price Volatility: NRP`s profitability is heavily reliant on fluctuating prices of commodities like coal and industrial minerals, creating dependence that can lead to significant swings in stock price and revenue over cycles.
  • Regulatory Compliance Challenges: Evolving regulations surrounding environmental impact, mining practices, and carbon capture technologies can significantly impact NRP`s operations and necessitate costly compliance measures across jurisdictions.
  • Resource Depletion Risks: The finite nature of natural resources raises concerns about long-term sustainability of NRP`s business model, requiring continuous monitoring of industry trends and exploration development activities and demands.
  • Natural Resource Competition: Established mining companies and new entrants are vying for market share and challenging NRP`s position, requiring innovation and strategic positioning to maintain competitive advantages in contested markets.

  Final thoughts on Natural Resource Partners

  NRP`s diverse assets, carbon capture focus, and income distribution create opportunities for investors seeking natural resource exposure and regular income. However, commodity price volatility, evolving regulations, resource depletion concerns, and competitive pressures warrant careful evaluation of cyclical resource market risks. NRP leverages diversified mineral assets to generate cash flows while navigating complex natural resource market dynamics across cycles and regions.

• Power Solutions (NYSE:PSIX)

  Power Solutions International, Inc. designs, engineers, and manufactures a wide range of engines and power systems for industrial and on-road applications. Founded in 1985 and headquartered in Wood Dale, Illinois, the company has strategically pivoted towards the high-growth data center power generation market. This shift has been a major catalyst, with shares up over 800% last year amid strong demand for backup power driven by the AI boom.

  The company`s primary business involves providing customized, emission-certified power systems, including natural gas and diesel-powered electric generators for mission‑critical applications. Its Power Systems segment, which now accounts for the majority of sales, is experiencing rapid growth fueled by hyperscalers expanding their data center capacities. PSI`s integrated, custom‑engineered solutions position it as a key supplier of critical infrastructure supporting uninterrupted power for AI and cloud computing.

  Power Solutions financial statements

  Analysts recommendation: 1

  Financial Health

  • Return on assets (ROA): 30.37%
  • Return on equity (ROE): 118.5%
  • Return on investment (ROI): 39.12%

  Profitability

  • Gross margin: 27.38%
  • Operating margin: 16.38%
  • Net profit margin: 17.94%

  Growth

  • EPS (past 5 years): 51.02%
  • EPS (current): 5.26
  • EPS estimate (next quarter): 0.64
  • EPS growth (this year): 75.05%
  • EPS growth (next year): 17.56%
  • EPS growth (next 5 years): 45.14%
  • EPS growth (quarter-over-quarter): 59.18%
  • Sales growth (past 5 years): -2.71%
  • Sales growth (quarter-over-quarter): 61.97%

  💡 Why invest in Power Solutions?

  Power Solutions provides essential infrastructure and energy services for customers across data center and industrial markets:

  • Data Center Dynamo: The company`s strategic focus on providing backup power generators for data centers is its primary growth engine, placing PSIX in a lucrative, rapidly expanding market segment serving hyperscalers with certified uptime.
  • Impressive Financial Performance: PSIX has demonstrated remarkable financial transformation, reporting strong revenue growth and significant net income increases while consistently beating earnings estimates and showing operational excellence.
  • Strong Profit Margins: The company boasts a healthy gross margin of 29.7% that has been improving year-over-year, indicating efficient operations and strong pricing power for its in-demand products in the competitive market across core offerings.
  • Strengthening Financial Health: Management has been actively improving the company`s balance sheet by paying down debt, with this financial discipline expected to generate significant free cash flow and enhance shareholder value today.

  🐌 Key considerations before investing in Power Solutions

  Power Solutions faces owner control, data center reliance, competition, tariff risk, pressuring execution and profitability:

  • Majority Ownership Control: Weichai America Corp. is the majority owner of PSIX, creating significant concentration risk where strategic decisions could potentially favor the parent company's interests over minority shareholders over time.
  • Data Center Dependence: The company`s recent success is heavily tied to the continued expansion of data centers, creating significant risk if this sector experiences slowdowns or reduced capital investment in infrastructure across cycles.
  • Industrial Competition Intensity: PSIX faces stiff competition from larger, more established players in the industrial power systems market with greater resources, market reach, and established customer relationships across key verticals and regions.
  • Geopolitical Trade Risks: The company has acknowledged the evolving tariff environment as a potential risk, with changes in trade policy potentially introducing supply chain disruptions and increased manufacturing costs across supply chains.

  Final thoughts on Power Solutions

  Power Solutions International has successfully engineered a powerful pivot into the data center market, resulting in explosive growth and a revitalized financial profile. The AI revolution provides a strong runway, but risks remain, including competitive pressures and the influence of its majority owner. For investors who believe the data center boom is just getting started, PSIX offers a compelling opportunity to plug into a high-growth story.

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