Invest in 5 Small-Cap Stocks During the 2025 Rally for Increased Profits in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 08 2025
0mins
Should l Buy ALLT?
Source: NASDAQ.COM
Small-Cap Stock Performance: Small-cap stocks have seen a rebound in 2024, supported by a low-interest-rate environment, with the Russell 2000 and S&P 600 indices up 13% and 5.3% year-to-date, respectively.
Growth Potential of Small Businesses: Small businesses, reliant on affordable credit, benefit from declining interest rates, which can enhance their profitability and market capitalization, despite being more volatile than larger companies.
Highlighted Small-Cap Stocks: Five small-cap stocks recommended for growth in 2026 include Allot Ltd., Seanergy Maritime Holdings Corp., Isabella Bank Corp., Owlet Inc., and Intellicheck Inc., all holding a Zacks Rank #1 (Strong Buy).
Future Stock Recommendations: Zacks Investment Research plans to release its top 10 stock picks for 2026 on January 5, following a history of significant gains, with the previous top stocks outperforming the S&P 500 substantially.
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Analyst Views on ALLT
Wall Street analysts forecast ALLT stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 6.340
Low
12.50
Averages
14.63
High
18.00
Current: 6.340
Low
12.50
Averages
14.63
High
18.00
About ALLT
Allot Ltd is an Israel-based company engaged primarily in the software solutions for the communication sector. The Company is a provider of security solutions and network intelligence solutions for mobile, fixed and cloud service providers as well as enterprises worldwide. The Company's solutions are deployed globally for network-based security, including mobile security, distributed denial of service (DDoS) protection and Internet of Things (IoT) security, network and application analytics, traffic control and shaping, and more. The Company delivers a unified security service for individual consumers and small and medium-sized businesses (SMBs), at home, at work and on the go, with the Allot Secure product family.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Allot Ltd. Reports Strong Q4 2025 Earnings with Significant Growth in Cybersecurity Revenue
- Significant Revenue Growth: Allot Ltd. reported fourth-quarter revenue of $28.4 million, up 14% year-over-year, with total annual revenue reaching $102 million, reflecting an 11% increase, showcasing the company's strong performance in the cybersecurity sector.
- Expansion of Cybersecurity Services: Cybersecurity as a Service (SECaaS) revenue hit $8.1 million in Q4, a 70% year-over-year increase, comprising 28% of total quarterly revenue, indicating the company's competitive edge in this rapidly growing market.
- Improved Profitability: The company achieved a non-GAAP net income of $4.1 million in Q4, translating to $0.08 per diluted share, a 105% increase from the previous year, while non-GAAP gross margin rose to 71.9%, reflecting improvements in cost control and profitability.
- Optimistic Future Outlook: Management projects 2026 revenues between $113 million and $117 million, with SECaaS expected to drive continued double-digit growth, despite challenges from AI data center spending and supply chain pressures.
See More
Allot Reports Q4 Earnings with 14.1% Revenue Growth
- Earnings Highlights: Allot's Q4 earnings report reveals a non-GAAP EPS of $0.08, aligning with expectations, which indicates stable profitability and boosts market confidence in future performance.
- Revenue Growth: The company reported Q4 revenue of $28.4 million, marking a 14.1% year-over-year increase and exceeding market expectations by $0.5 million, showcasing Allot's competitive edge and growth potential in the industry.
- Significant ARR Increase: By December 2025, Allot's SECaaS annual recurring revenue (ARR) reached $30.8 million, up 69% year-over-year, reflecting strong demand and acceptance in the security-as-a-service market.
- Stock Price Reaction: Despite the positive earnings report, Allot's shares fell 1% in after-hours trading, possibly indicating market caution regarding future growth, prompting investors to monitor subsequent developments.
See More
Allot Reports Significant Revenue Growth in 2025 Financial Results
- Revenue Growth: Total revenues for 2025 reached $102 million, an 11% year-over-year increase, demonstrating strong performance in the SECaaS sector, with projections for 2026 revenue growth to between $113 million and $117 million, reflecting sustained market demand.
- Profitability Improvement: GAAP net income for 2025 was $3.7 million, or $0.08 per share, a significant turnaround from a loss in 2024, indicating a robust recovery in profitability that enhances investor confidence.
- Cash Flow Performance: Operating cash flow for 2025 was $17.8 million, a substantial increase from 2024, indicating improvements in financial management and operational efficiency, which will support future investments and expansion.
- SECaaS Business Growth: SECaaS annual recurring revenue (ARR) reached $30.8 million in 2025, a 69% year-over-year increase, showcasing the company's market leadership in cybersecurity solutions and expected to continue driving future growth.
See More
Allot Scheduled to Announce Q4 Earnings on February 25
- Earnings Announcement Schedule: Allot is set to release its Q4 earnings on February 25 before market open, with a consensus EPS estimate of $0.08 and revenue estimate of $27.9 million, indicating significant market interest in its performance.
- Performance Beat Record: Over the past two years, Allot has surpassed EPS estimates 88% of the time and revenue estimates 75% of the time, showcasing its consistent profitability and competitive position in the market.
- Expectation Revisions: In the last three months, Allot's EPS estimates have seen one upward revision with no downward adjustments, and revenue estimates have also experienced one upward revision, reflecting analysts' growing confidence in the company's future performance.
- Market Reaction Potential: As the earnings report approaches, investor interest in Allot is heightened, particularly given its track record of exceeding expectations, which could positively influence its stock price.
See More
Kanen Wealth Management Acquires Stake in Trex
- New Investment Update: Kanen Wealth Management LLC reported a new stake in Trex (TREX) of 250,000 shares in its SEC filing on February 18, 2026, with an estimated transaction value of $8.83 million, marking a new addition to the fund's portfolio and enhancing its investment diversity.
- Ownership Proportion Analysis: This acquisition gives Trex a 2.68% share of Kanen's reportable U.S. equity assets, indicating the fund's confidence in the company's growth potential, particularly amid the current sluggish housing market.
- Market Performance Assessment: As of February 18, 2026, Trex's share price stood at $41.89, reflecting a 37.3% decline over the past year, significantly trailing the S&P 500 by 49.6 percentage points, which highlights market caution regarding its future performance.
- Growth Potential Outlook: Despite a weak housing market, Trex's 25% sales contribution from new products and a 22% year-over-year growth rate demonstrate strong market adaptability, suggesting that Kanen's investment may signal optimism for future market recovery.
See More
Kanen Wealth Management Initiates Position in Trex
- New Investment Move: Kanen Wealth Management LLC reported a new stake in Trex (NYSE:TREX) of 250,000 shares in its SEC filing on February 18, 2026, with an estimated transaction value of $8.83 million, indicating confidence in the company.
- Asset Allocation Impact: This transaction positions Trex to represent 2.68% of Kanen's reportable 13F assets, although it does not make the top five holdings, it still signifies its importance within the portfolio.
- Market Performance Analysis: As of February 18, 2026, Trex's stock price stood at $41.89, down 37.3% over the past year, significantly trailing the S&P 500 by 49.6 percentage points, reflecting market caution regarding its future performance.
- Growth Potential Outlook: Despite a subdued housing market, Trex's 25% sales contribution from new products and a 22% year-over-year growth rate demonstrate its potential for benefiting from a housing recovery, suggesting Kanen's investment may be a strategic bet on this trend.
See More
Allot Ltd. Reports Strong Q4 2025 Earnings with Significant Growth in Cybersecurity Revenue
- Significant Revenue Growth: Allot Ltd. reported fourth-quarter revenue of $28.4 million, up 14% year-over-year, with total annual revenue reaching $102 million, reflecting an 11% increase, showcasing the company's strong performance in the cybersecurity sector.
- Expansion of Cybersecurity Services: Cybersecurity as a Service (SECaaS) revenue hit $8.1 million in Q4, a 70% year-over-year increase, comprising 28% of total quarterly revenue, indicating the company's competitive edge in this rapidly growing market.
- Improved Profitability: The company achieved a non-GAAP net income of $4.1 million in Q4, translating to $0.08 per diluted share, a 105% increase from the previous year, while non-GAAP gross margin rose to 71.9%, reflecting improvements in cost control and profitability.
- Optimistic Future Outlook: Management projects 2026 revenues between $113 million and $117 million, with SECaaS expected to drive continued double-digit growth, despite challenges from AI data center spending and supply chain pressures.
See More
Allot Reports Q4 Earnings with 14.1% Revenue Growth
- Earnings Highlights: Allot's Q4 earnings report reveals a non-GAAP EPS of $0.08, aligning with expectations, which indicates stable profitability and boosts market confidence in future performance.
- Revenue Growth: The company reported Q4 revenue of $28.4 million, marking a 14.1% year-over-year increase and exceeding market expectations by $0.5 million, showcasing Allot's competitive edge and growth potential in the industry.
- Significant ARR Increase: By December 2025, Allot's SECaaS annual recurring revenue (ARR) reached $30.8 million, up 69% year-over-year, reflecting strong demand and acceptance in the security-as-a-service market.
- Stock Price Reaction: Despite the positive earnings report, Allot's shares fell 1% in after-hours trading, possibly indicating market caution regarding future growth, prompting investors to monitor subsequent developments.
See More
Allot Reports Significant Revenue Growth in 2025 Financial Results
- Revenue Growth: Total revenues for 2025 reached $102 million, an 11% year-over-year increase, demonstrating strong performance in the SECaaS sector, with projections for 2026 revenue growth to between $113 million and $117 million, reflecting sustained market demand.
- Profitability Improvement: GAAP net income for 2025 was $3.7 million, or $0.08 per share, a significant turnaround from a loss in 2024, indicating a robust recovery in profitability that enhances investor confidence.
- Cash Flow Performance: Operating cash flow for 2025 was $17.8 million, a substantial increase from 2024, indicating improvements in financial management and operational efficiency, which will support future investments and expansion.
- SECaaS Business Growth: SECaaS annual recurring revenue (ARR) reached $30.8 million in 2025, a 69% year-over-year increase, showcasing the company's market leadership in cybersecurity solutions and expected to continue driving future growth.
See More
Allot Scheduled to Announce Q4 Earnings on February 25
- Earnings Announcement Schedule: Allot is set to release its Q4 earnings on February 25 before market open, with a consensus EPS estimate of $0.08 and revenue estimate of $27.9 million, indicating significant market interest in its performance.
- Performance Beat Record: Over the past two years, Allot has surpassed EPS estimates 88% of the time and revenue estimates 75% of the time, showcasing its consistent profitability and competitive position in the market.
- Expectation Revisions: In the last three months, Allot's EPS estimates have seen one upward revision with no downward adjustments, and revenue estimates have also experienced one upward revision, reflecting analysts' growing confidence in the company's future performance.
- Market Reaction Potential: As the earnings report approaches, investor interest in Allot is heightened, particularly given its track record of exceeding expectations, which could positively influence its stock price.
See More
Kanen Wealth Management Acquires Stake in Trex
- New Investment Update: Kanen Wealth Management LLC reported a new stake in Trex (TREX) of 250,000 shares in its SEC filing on February 18, 2026, with an estimated transaction value of $8.83 million, marking a new addition to the fund's portfolio and enhancing its investment diversity.
- Ownership Proportion Analysis: This acquisition gives Trex a 2.68% share of Kanen's reportable U.S. equity assets, indicating the fund's confidence in the company's growth potential, particularly amid the current sluggish housing market.
- Market Performance Assessment: As of February 18, 2026, Trex's share price stood at $41.89, reflecting a 37.3% decline over the past year, significantly trailing the S&P 500 by 49.6 percentage points, which highlights market caution regarding its future performance.
- Growth Potential Outlook: Despite a weak housing market, Trex's 25% sales contribution from new products and a 22% year-over-year growth rate demonstrate strong market adaptability, suggesting that Kanen's investment may signal optimism for future market recovery.
See More
Kanen Wealth Management Initiates Position in Trex
- New Investment Move: Kanen Wealth Management LLC reported a new stake in Trex (NYSE:TREX) of 250,000 shares in its SEC filing on February 18, 2026, with an estimated transaction value of $8.83 million, indicating confidence in the company.
- Asset Allocation Impact: This transaction positions Trex to represent 2.68% of Kanen's reportable 13F assets, although it does not make the top five holdings, it still signifies its importance within the portfolio.
- Market Performance Analysis: As of February 18, 2026, Trex's stock price stood at $41.89, down 37.3% over the past year, significantly trailing the S&P 500 by 49.6 percentage points, reflecting market caution regarding its future performance.
- Growth Potential Outlook: Despite a subdued housing market, Trex's 25% sales contribution from new products and a 22% year-over-year growth rate demonstrate its potential for benefiting from a housing recovery, suggesting Kanen's investment may be a strategic bet on this trend.
See More
