John Rogers recommends Covista, Lazard and Knowles

John Rogers, founder and chief investment officer of Ariel Investments, recommended buying small-cap stocks Covista Holdings, Lazard and Knowles in a recent interview. He described the market as excessively expensive because of an ‘AI craze’ and said Ariel will shift its focus to overlooked small caps for the remainder of 2026.

On Covista Holdings (CVSA), Rogers pointed to the company’s for-profit education business that trains healthcare professionals. CVSA shares are up about 20% year-to-date. He cited a long-term shortage of doctors and nurses as a structural tailwind and praised CEO Stephen Beard for operational changes and steady enrollment. Rogers said scalable private-sector training can help address workforce gaps and that Covista has ‘a lot of room to run’ if valuation measures reset.

Rogers recommended Lazard (LAZ), whose stock has fallen roughly 20% this year. He said advisory activity remains active and could pick up in a deregulated environment. He commended CEO Peter Orszag for new perspectives and called Ray McGuire, the firm’s president and co-head of financial advisory, ‘a brilliant investor.’ Rogers noted Lazard’s asset-management business as an additional source of earnings.

Knowles Corporation (KN), a Chicago-area micro-acoustics supplier, has seen shares rise about 90% this year. Rogers pointed to demand for micro-mechanical microphones and specialized audio processing components. He said the company benefits from steady trends such as automation and upgrades in hearing health. Analysts currently rate Knowles ‘Overweight’ with price targets up to $50, implying more than 20% upside from current levels.

Rogers described these recommendations as part of Ariel’s focus on companies with predictable revenue and clear market positions. He said value managers have underperformed this year as capital moved into a small group of AI-focused mega-cap stocks, increasing concentration. He added that Ariel is positioning to benefit if investors rotate into smaller, fundamentally oriented companies.