Small company stocks continue their upward march, with S&P SmallCap 600 returns over the trailing twelve months reaching 35.6% compared to 28.8% for the S&P 500.

Many small companies, especially those with quality metrics similar to those in the SmallCap Informer, have become attractive to investors fleeing over-extended mega-caps and diving into the small-cap pool. 

Recent beneficiaries of this market move have been semiconductor-related companies. Many of these were lifted still higher in April 2026 as demand for AI chips creates shortages, even as plans to build new data centers are increasingly being challenged by residents and local governments.

Investors continue to find opportunities in the industry, and SCI covered companies in the segment—Photronics, InTest, Nova, and Fabrinet—all saw share prices boosted in the month.

The P/E ratios of Fabrinet and Nova are now quite over-extended due to enthusiasm for these companies, good for current owners, but sad for those who did not take advantage of the openings to buy when they were presented.

It is too early to tell if small-caps will take over market leadership for the prolonged small-cap up cycle that many have been waiting for. For now, our coverage list includes a number of very reasonably-priced stocks for subscribers looking to invest.

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In this issue of the SmallCap Informer,  we introduce a new company in the fintech segment, a business that operates as a "neobank" utilizing AI and technology to provide vital services at reduced costs to strapped Americans

Stay the course!

— DOUG GERLACH

Subscribers can read Doug's complete commentary and the in-depth profile of our recommended small company stock in the current issue of the SmallCap Informer stock newsletter. Not a subscriber? Subscribe to the SmallCap Informer and get monthly small company stock recommendations and updated buy/sell prices for each of the ~40 high-quality small company stocks currently covered in the newsletter.