Two Small-Cap Stocks to Sell and One to Watch: Yext, Kohl's, and MACOM

Yext (YEXT) has underwhelming ARR growth and projected sales growth of 4.4% for the next 12 months. Kohl's (KSS) has weak same-store sales trends and projected sales to tank by 5.2%. MACOM Technology Solutions (MTSI) has increased market share with 9.9% annual revenue growth over the last two years and projected revenue growth of 21.6% for the next 12 months.

SailPoint, Inc. (NASDAQ: SAIL) stock surged Wednesday following the company's fiscal first-quarter results announcement. The company reported quarterly revenue growth of 23% year-on-year (YoY) to $230.47 million, slightly missing analyst consensus estimates of $235.19 million [1]. The subscription revenue component grew by 27% to $215.32 million.

SailPoint's adjusted earnings per share (EPS) of 1 cent surpassed the consensus analyst estimate of a 1-cent loss. The company's annual recurring revenue (ARR) increased by 30% to $925 million, with the Software-as-a-Service (SaaS) ARR component growing by 39% to $574 million. The company expanded its customer base with more than $1 million in ARR by 62% YoY.

For the second-quarter of fiscal year 2026, SailPoint expects an ARR of $963 million-$967 million, representing 26% growth. The company anticipates quarterly revenue of $242 million-$244 million, a 22%-23% increase over the $231.96 million consensus estimate. SailPoint expects an adjusted EPS of 4 to 5 cents, which compares favorably to the consensus analyst estimate of a 1-cent loss per share.

For fiscal 2026, SailPoint projects an ARR of $1.095 billion-$1.105 billion, representing 25%-26% growth. The company expects revenue of $1.034 billion-$1.044 billion, a 20-21% increase over the $854.21 million analyst estimate. SailPoint now projects an adjusted EPS of 16-20 cents, raising its forecast from 14-18 cents and beating the consensus estimate of a 10-cent loss.

The stock price action reflects the positive sentiment, with SAIL trading higher by 11.0% to $21.80 premarket [1].

References:
[1] https://finance.yahoo.com/news/sailpoint-lifts-2026-forecast-reporting-125816887.html