‘Small-Caps Set for Upside’: Goldman Sachs Suggests 2 Small-Cap Stocks for 2026

Let’s talk about small-cap stocks. Though they have largely been swimming under the radar during the past year – as mega-cap giants soaked up funds and headlines – small-caps still offer plenty of avenues for solid portfolio growth.Claim 70% Off TipRanks This Holiday SeasonUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential It’s important to note here that the Russell 2000, the benchmark index for small-cap investors, has gained in the mid-teens this year. While that slightly lags the S&P 500 (an 18% gain for 2025), it’s nothing to scoff at. Covering the small-cap companies, the Goldman Sachs portfolio strategy research team takes an upbeat view, writing, “Our baseline macro outlook is supportive for small-cap upside in early 2026. GS forecasts point to accelerating and above-consensus US economic growth alongside below-consensus inflation and continued Fed easing. We do not believe markets are fully pricing the likely strength of the US economy next year, and small-caps typically outperform during cyclical rallies. Futures positions and short interest also suggest upside risk for small-caps… Looking forward, cross-currents including changes in fiscal policy, rising corporate AI adoption, and increased M&A activity will create the potential for large idiosyncratic returns and generate opportunities for small-cap stock pickers in 2026.” Goldman analyst Eric Sheridan is running with that thesis. He’s picked out two small-cap stocks for 2026, shares that investors should look into a little more deeply. According to the TipRanks data platform, both of Sheridan’s choices are viewed positively on the Street; let’s dive in and find out why these small-caps could be set for upside. Opera, Ltd. (OPRA) The first small-cap stock we’ll look at is Opera, a Norwegian-based tech firm that has been around for three decades and sports an enterprise value around $1.28 billion. Since 2016, Opera’s majority owner has been Kunlun Tech, a Chinese tech company. The company makes clear that it abides by European privacy standards, and notes on its website that any data shared is stored in Europe. Opera’s browsers are built in Poland and Sweden, and are designed for faster, smarter, and safer web use. The company offers free browser downloads for personal computers and mobile devices. Opera announced in early December that the AI features on its browsers are now powered by Google. On the security side, Opera uses the open-source Chromium ecosystem, providing a robust infrastructure to protect users’ web activity and data. The system includes isolated processes, encrypted DNS protocols, secure add-ons, and regular security updates. Other features include ad and tracker blocking, VPNs, and security audits. We should note that Opera has been facing serious headwinds this year, in the form of increased operating expenses and decreased operating cash flows. Shares in OPRA are down by 20% year-to-date. That said, in the last reported quarter, 3Q25, Opera reported 23% year-over-year growth in revenue, which came in at $151.9 million. It exceeded the guidance range, and was $3.8 million better than the analysts had expected as well. The company’s EPS of 30 cents per share in non-GAAP measures missed the forecast by a penny. Eric Sheridan, in his write-up of Opera for Goldman, takes note of the good and the bad here, saying, “Despite positive fundamentals and continued operating momentum, the stock continues to be under pressure due to a combination of investor fears/debates around increased competition across AI-related browsers and an overall investor preference for larger over small capitalization names in our universe. That being said, (based on our updated fundamental work), the stock screens as one of the most asymmetric ideas across our coverage universe for compounded revenue growth and upward margin trajectory (coupled with steady shareholder returns) while innovating across key industry themes and executing on innovative aspects of AI, commerce, and gaming.” Ultimately, however, Sheridan remains upbeat: “We remain convinced that Opera is positively levered to long-term secular tailwinds within digital advertising and idiosyncratically benefiting from geographic & product mix shift dynamics as a driver of sustained double-digit % growth over the next several years.” These comments support the analyst’s Buy rating, and his $24.50 price target indicates room for a 69% upside potential in the coming year. (To watch Sheridan’s track record, click here) All four of the recent analyst reviews here are positive, making the Strong Buy consensus rating on this stock unanimous. OPRA is selling for $14.54 and its $26.75 average price target suggests that the stock has a 12-month upside potential of 84%. (See OPRA stock forecast)