Editor’s Note
This article outlines a strategic approach to identifying promising small-cap stocks in a volatile market, emphasizing resilience and growth potential as key screening criteria.
As February 2026 begins, the U.S. stock market has shown a strong start with major indices like the Dow Jones Industrial Average and S&P 500 ending sharply higher, reflecting a positive sentiment despite recent economic uncertainties such as delayed jobs reports and trade negotiations. In this dynamic environment, identifying undiscovered gems in the small-cap sector requires a keen eye for companies that demonstrate resilience and potential amidst broader market movements.
Ingles Markets, Incorporated operates a chain of supermarkets across the United States and has a market capitalization of approximately $1.61 billion.
Recent results highlight a sales increase to US$1,372.98 million for the first quarter of fiscal year 2026, up from US$1,288.12 million the previous year, while net income rose to US$28.13 million from US$16.59 million—reflecting strong performance despite past challenges in revenue growth over five years at -22%.
ASA Gold and Precious Metals Limited is a publicly owned investment manager with a market cap of $1.24 billion.
Despite having limited revenue at US$4 million, ASA’s Price-To-Earnings ratio stands attractively low at 1.9x compared to the broader US market’s 19.5x. However, a substantial one-off gain of US$667 million has notably influenced its recent financial outcomes, hinting that future earnings may stabilize without similar extraordinary items impacting results again soon.
Central Pacific Financial Corp. is the bank holding company for Central Pacific Bank, offering a variety of commercial banking products and services to businesses, professionals, and individuals in the United States, with a market cap of $926.35 million.
The bank’s strong foundation is built on low-risk funding sources, with customer deposits making up 97% of liabilities. It also maintains a sufficient allowance for bad loans at 0.3% of total loans. Recent developments include a share repurchase program worth US$55 million and an increased quarterly dividend to $0.29 per share, reflecting confidence in its financial health and future prospects amidst competitive pressures in Hawaii’s banking landscape. Central Pacific Financial’s expansion in wealth management and digital banking aims to diversify revenue streams.