Small-cap stocks are capturing investor attention in 2025, with several companies demonstrating remarkable performance. These stocks, often characterized by their market capitalizations under $2 billion, can offer substantial growth potential. Here’s an overview of some notable small-cap movers this year:
Top Performing Small-Cap Stocks
According to NerdWallet, the following small-cap stocks have delivered impressive one-year returns as of April 16, 2025:
- Nutex Health Inc. (NUTX): +2,479.86%
- Bright Minds Biosciences Inc. (DRUG): +2,396.85%
- United States Antimony Corp. (UAMY): +1,256.25%
- TSS Inc. (TSSI): +1,206.69%
- Alpha Technology Group Ltd. (ATGL): +1,205.31%
- AST SpaceMobile Inc. (ASTS): +995.67%
- Exodus Movement Inc. (EXOD): +978.31%
- GeneDx Holdings Corp. (WGS): +913.16%
- Monopar Therapeutics Inc. (MNPR): +903.44%
- Power Solutions International Inc. (PSIX): +896.64%
Noteworthy IPOs
Recent initial public offerings (IPOs) have also made significant strides:
- Loar Holdings: Specializing in aerospace and defense components, Loar Holdings’ stock surged nearly 7% after breaking past a $90.79 buy point. Analysts project a first-quarter earnings increase of 1,441%.
- Marex: A London-based trading and financial services firm, Marex has benefited from increased trading volumes amid market volatility. Its stock broke out from a $40.05 buy point and holds a strong IBD Composite Rating.
Investor Insights
Industry experts suggest that small-cap stocks may continue to outperform, especially as the market cycle shifts. Factors contributing to this outlook include potential interest rate cuts and a focus on domestic growth policies. Analysts anticipate robust earnings growth for small-cap companies, with projections of a 42% increase in 2025.
Considerations for Investors
While the potential for high returns is enticing, it’s essential to approach small-cap investments with caution:
- Volatility: Small-cap stocks can experience significant price fluctuations.
- Liquidity: These stocks may have lower trading volumes, affecting the ease of buying or selling shares.
- Research: Comprehensive due diligence is crucial, as smaller companies may have less publicly available information.
Investors interested in small-cap stocks should consider diversifying their portfolios and staying informed about market trends. Consulting with financial advisors and conducting thorough research can help navigate the dynamic landscape of small-cap investing.
