Small-Cap Stocks Surge, Led by Communication Services
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 11 2026
0mins
Should l Buy UNIT?
Source: seekingalpha
- Strong Small-Cap Performance: Year-to-date in 2026, the iShares Core S&P Small-Cap ETF (IJR) has surged 10.9%, significantly outperforming the SPDR S&P 500 ETF Trust (SPY) which only rose 1.4%, indicating a potential shift in investor sentiment towards small-cap stocks after years of underperformance.
- Leading Communication Services: Uniti Group (UNIT) tops the list with a 16.09% price percentage above its 200-day simple moving average, showcasing its robust market performance and likely attracting increased investor interest in small-cap communication services.
- Notable Performers: Gray Media (GTN.A) and Sinclair (SBGI) follow closely with increases of 15.80% and 4.85%, respectively, highlighting the diversity and growth potential within the communication services sector, which may prompt investors to reassess the value of this industry.
- Market Trend Insights: The strong performance of small-cap stocks may lead investors to reconsider their portfolios, particularly in the communication services sector, which is expected to drive inflows into related ETFs like XLC and VOX, further enhancing market vitality.
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Analyst Views on UNIT
Wall Street analysts forecast UNIT stock price to fall
4 Analyst Rating
1 Buy
2 Hold
1 Sell
Hold
Current: 8.310
Low
6.00
Averages
6.88
High
8.00
Current: 8.310
Low
6.00
Averages
6.88
High
8.00
About UNIT
Uniti Group Inc. is a premier insurgent fiber provider dedicated to enabling mission-critical connectivity across the United States. It offers advanced communications services, including fiber-based broadband to residential and business customers, managed cloud communications and security services for enterprises and government entities and tailored wave and transport solutions for carriers, content providers and large cloud computing and storage service providers. Its segments include Kinetic, Uniti Solutions, and Fiber Infrastructure. Kinetic segment offers local and long-distance voice services and Web conferencing products. Uniti Solutions segment includes software solutions and network connectivity. Fiber Infrastructure segment offers network bandwidth to other telecommunications carriers, network operators, content providers and storage service providers. Its portfolio of services is offered through a suite of brands: Uniti Wholesale, Kinetic, Uniti Fiber, and Uniti Solutions.
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.
Uniti Wholesale Accelerates 2026 Expansion Plan with FastWaves Launch
- Network Expansion Investment: Uniti Wholesale plans a significant capital investment in 2026, adding approximately 20 new data center on-ramps and six major route upgrades, aimed at enhancing its nationwide Intelligent Converged Network (ICON) to meet the growing multi-terabit demands of the AI era.
- FastWaves™ Program Launch: The company is launching the FastWaves™ initiative to reduce delivery intervals for 100G and 400G wavelength services to less than three weeks, with Phase 1 set to activate 40 high-demand routes by March 1, further enhancing customer service experience.
- Customer Visualization Tool: Through the iconnect customer portal, clients can utilize the Route Creator tool to view available routes and place quotes and orders directly, increasing transparency in the delivery process while simplifying partner scaling across the U.S.
- Enhanced Service Commitments: The FastWaves program features competitive pricing and SLA-backed commitments, ensuring compensation if installations are not completed within three weeks, showcasing Uniti Wholesale's robust service assurance capabilities in the high-capacity transport market.
See More
UNITI GROUP: FASTWAVES PHASE 1 SET TO LAUNCH 40 HIGH-DEMAND ROUTES BY MARCH 1, WITH PHASE 2 ADDING 15 MORE ROUTES IN Q2
Phase 1 Activation: UNITI Group plans to activate 40 high-demand routes by March 1 as part of its Phase 1 strategy.
Phase 2 Expansion: In Q2, the company aims to add 15 more routes, further expanding its network.
See More
UNITI GROUP TO INVEST CAPITAL IN 2026 FOR EXPANSION OF DATA CENTER CONNECTIVITY IN THE U.S., INCLUDING 20 NEW ON-RAMPS AND SIX SIGNIFICANT ROUTE UPGRADES
- Investment Plans: UNITI is planning to make capital investments in 2026 to expand data center connectivity in the U.S.
- Infrastructure Enhancements: The investment will include the addition of 20 on-ramps and six major route upgrades.
See More
Arena Capital Advisors Fully Exits Diebold Nixdorf Position
- Complete Liquidation: Arena Capital Advisors disclosed on February 3, 2026, that it sold its entire position of 611,495 shares in Diebold Nixdorf for an estimated value of $34.9 million, indicating a shift in confidence regarding the stock.
- Portfolio Adjustment: Previously, Diebold Nixdorf represented 15% of Arena Capital's securities portfolio, and this liquidation aligns with a broader 31% reduction in the value of their disclosed holdings, reflecting a strategic repositioning.
- Market Performance: As of February 3, 2026, Diebold Nixdorf shares traded at $70.99, marking a 68.8% increase over the past year, significantly outperforming the S&P 500 by 53.4 percentage points, showcasing its strong market position.
- Investment Strategy: Arena Capital likely acquired Diebold Nixdorf at lower prices and opted to sell now to raise cash for investments in assets with better return prospects, indicating a strategic shift in their value investment approach.
See More
Small-Cap Stocks Surge, Led by Communication Services
- Strong Small-Cap Performance: Year-to-date in 2026, the iShares Core S&P Small-Cap ETF (IJR) has surged 10.9%, significantly outperforming the SPDR S&P 500 ETF Trust (SPY) which only rose 1.4%, indicating a potential shift in investor sentiment towards small-cap stocks after years of underperformance.
- Leading Communication Services: Uniti Group (UNIT) tops the list with a 16.09% price percentage above its 200-day simple moving average, showcasing its robust market performance and likely attracting increased investor interest in small-cap communication services.
- Notable Performers: Gray Media (GTN.A) and Sinclair (SBGI) follow closely with increases of 15.80% and 4.85%, respectively, highlighting the diversity and growth potential within the communication services sector, which may prompt investors to reassess the value of this industry.
- Market Trend Insights: The strong performance of small-cap stocks may lead investors to reconsider their portfolios, particularly in the communication services sector, which is expected to drive inflows into related ETFs like XLC and VOX, further enhancing market vitality.
See More
Uniti Group (UNIT) Prices $1B Senior Notes Offering at 8.625% Due 2032
- Upsized Offering: Uniti Group increased its senior notes offering from $500 million to $1 billion, reflecting strong market demand for its financing needs, which is expected to enhance the company's liquidity and financial flexibility.
- Interest Rate Setting: The notes carry an interest rate of 8.625% and are priced at 100.25%, indicating high investor demand for this debt instrument, which may impact the company's cost of capital.
- Clear Use of Proceeds: The net proceeds will be used to repay Uniti Services' senior secured first lien term loan due 2031, cover related fees, and allocate remaining funds for general corporate purposes, ensuring the robustness of the company's financial structure.
- Expected Closing Date: The offering is anticipated to close on February 4, 2026, marking an active positioning of the company in the capital markets, which supports its future strategic development.
See More
Uniti Wholesale Accelerates 2026 Expansion Plan with FastWaves Launch
- Network Expansion Investment: Uniti Wholesale plans a significant capital investment in 2026, adding approximately 20 new data center on-ramps and six major route upgrades, aimed at enhancing its nationwide Intelligent Converged Network (ICON) to meet the growing multi-terabit demands of the AI era.
- FastWaves™ Program Launch: The company is launching the FastWaves™ initiative to reduce delivery intervals for 100G and 400G wavelength services to less than three weeks, with Phase 1 set to activate 40 high-demand routes by March 1, further enhancing customer service experience.
- Customer Visualization Tool: Through the iconnect customer portal, clients can utilize the Route Creator tool to view available routes and place quotes and orders directly, increasing transparency in the delivery process while simplifying partner scaling across the U.S.
- Enhanced Service Commitments: The FastWaves program features competitive pricing and SLA-backed commitments, ensuring compensation if installations are not completed within three weeks, showcasing Uniti Wholesale's robust service assurance capabilities in the high-capacity transport market.
See More
UNITI GROUP: FASTWAVES PHASE 1 SET TO LAUNCH 40 HIGH-DEMAND ROUTES BY MARCH 1, WITH PHASE 2 ADDING 15 MORE ROUTES IN Q2
Phase 1 Activation: UNITI Group plans to activate 40 high-demand routes by March 1 as part of its Phase 1 strategy.
Phase 2 Expansion: In Q2, the company aims to add 15 more routes, further expanding its network.
See More
UNITI GROUP TO INVEST CAPITAL IN 2026 FOR EXPANSION OF DATA CENTER CONNECTIVITY IN THE U.S., INCLUDING 20 NEW ON-RAMPS AND SIX SIGNIFICANT ROUTE UPGRADES
- Investment Plans: UNITI is planning to make capital investments in 2026 to expand data center connectivity in the U.S.
- Infrastructure Enhancements: The investment will include the addition of 20 on-ramps and six major route upgrades.
See More
Arena Capital Advisors Fully Exits Diebold Nixdorf Position
- Complete Liquidation: Arena Capital Advisors disclosed on February 3, 2026, that it sold its entire position of 611,495 shares in Diebold Nixdorf for an estimated value of $34.9 million, indicating a shift in confidence regarding the stock.
- Portfolio Adjustment: Previously, Diebold Nixdorf represented 15% of Arena Capital's securities portfolio, and this liquidation aligns with a broader 31% reduction in the value of their disclosed holdings, reflecting a strategic repositioning.
- Market Performance: As of February 3, 2026, Diebold Nixdorf shares traded at $70.99, marking a 68.8% increase over the past year, significantly outperforming the S&P 500 by 53.4 percentage points, showcasing its strong market position.
- Investment Strategy: Arena Capital likely acquired Diebold Nixdorf at lower prices and opted to sell now to raise cash for investments in assets with better return prospects, indicating a strategic shift in their value investment approach.
See More
Small-Cap Stocks Surge, Led by Communication Services
- Strong Small-Cap Performance: Year-to-date in 2026, the iShares Core S&P Small-Cap ETF (IJR) has surged 10.9%, significantly outperforming the SPDR S&P 500 ETF Trust (SPY) which only rose 1.4%, indicating a potential shift in investor sentiment towards small-cap stocks after years of underperformance.
- Leading Communication Services: Uniti Group (UNIT) tops the list with a 16.09% price percentage above its 200-day simple moving average, showcasing its robust market performance and likely attracting increased investor interest in small-cap communication services.
- Notable Performers: Gray Media (GTN.A) and Sinclair (SBGI) follow closely with increases of 15.80% and 4.85%, respectively, highlighting the diversity and growth potential within the communication services sector, which may prompt investors to reassess the value of this industry.
- Market Trend Insights: The strong performance of small-cap stocks may lead investors to reconsider their portfolios, particularly in the communication services sector, which is expected to drive inflows into related ETFs like XLC and VOX, further enhancing market vitality.
See More
Uniti Group (UNIT) Prices $1B Senior Notes Offering at 8.625% Due 2032
- Upsized Offering: Uniti Group increased its senior notes offering from $500 million to $1 billion, reflecting strong market demand for its financing needs, which is expected to enhance the company's liquidity and financial flexibility.
- Interest Rate Setting: The notes carry an interest rate of 8.625% and are priced at 100.25%, indicating high investor demand for this debt instrument, which may impact the company's cost of capital.
- Clear Use of Proceeds: The net proceeds will be used to repay Uniti Services' senior secured first lien term loan due 2031, cover related fees, and allocate remaining funds for general corporate purposes, ensuring the robustness of the company's financial structure.
- Expected Closing Date: The offering is anticipated to close on February 4, 2026, marking an active positioning of the company in the capital markets, which supports its future strategic development.
See More
