In this article, we will look at the 10 Best Small-Cap Growth Stocks to Buy According to Analysts.

Small Cap Outlook 2025

On March 26, Gabelli Funds released its small-cap 2025 outlook, highlighting the valuation discounts backing the small caps and the tailwinds from the macroeconomic backdrop. Charles LaRosa and Cameron Acito, investment team analysts at Gabelli, noted that small-cap stocks are trading at historically wide valuation discounts compared to large-cap stocks. This gap has grown due to the outperformance of mega-cap tech stocks and the dominance of passive investing, making small caps an attractive entry point for long-term, diversified investors.

The Russell 2000 index, which represents small-cap stocks, has generally traded at higher Forward P/E multiples from 2010 to 2017 compared to the Russell 1000. However, the valuation gap widened in favor of large caps since 2018, with significant premiums emerging from 2020 onwards. One of the key factors behind this divergence has been the heavyweight technology sector forming around 30% of the Russell 1000 index. The analysts highlighted this continued outperformance of large caps since 2015 and the persistent divergence suggests small-caps may be poised for an outperformance given the current valuation gaps.

Moreover, the report highlighted some macroeconomic tailwinds supporting small-cap stocks inducing Merger and Acquisitions, Reshoring, Insulation from Multinational Risks, Corporate Tax Cuts & Deregulation, and Declining Interest Rates. In addition, with Trump’s administration focusing on stronger US economic growth, fiscal stimulus, tax reforms, and deregulation, the economic outlook for small caps in 2025 remains robust.

With that let’s take a look at the 10 best small-cap growth stocks to buy according to analysts.

Our Methodology

To curate the list of the 10 best small-cap growth stocks to buy according to analysts, we used the Finviz stock screener and CNN as our sources. Using the screener we aggregated a list of small-cap stocks (Market Cap between $300 million to $2 billion), with more than 15% analyst upside potential. Next, we cross-checked the analyst upside potential from CNN and ranked the stocks in ascending order of this metric. We have also added hedge fund sentiment around each stock sourced from Insider Monkey’s Q1 2025 database. Please note that the data was recorded on June 11, 2025.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

10 Best Small-Cap Growth Stocks to Buy According to Analysts

10. Sabre Corporation (NASDAQ:SABR)

Market Capitalization: $1.15 billion

Number of Hedge Fund Holders: 32

Analyst Upside Potential: 18.24%

Sabre Corporation (NASDAQ:SABR) is one of the 10 Best Small-Cap Growth Stocks to Buy According to Analysts. On June 9, Sabre Corporation (NASDAQ:SABR) announced signing a 5-year renewal agreement with Vietravel Airlines to continue allowing the airline to use Sabre’s Radixx Passenger Service System.

The PSS is a cloud-based platform that offers end-to-end retailing, passenger servicing, and operational capabilities tailored for airlines. Vietravel Airlines will continue using the full suite of the solution that includes Radixx Res, Radixx EzyCommerce, Radixx Go, and Radixx Insight. This technology suite allows Vietravel Airlines to enhance passenger experience, scale operations efficiently, and access new revenue streams through Global Distribution System channels. This renewal is a testament to the strength and value of the Radixx platform, said Nico Stoman, Head of Radixx Sales and Account Management of Sabre Corporation (NASDAQ:SABR).

Sabre Corporation (NASDAQ:SABR) is a leading global technology company that powers the travel industry by providing advanced software solutions to airlines, hotels, travel agencies, and other travel partners. Its services include global distribution systems that connect travel suppliers with sellers in real-time.

9. GoodRx Holdings, Inc. (NASDAQ:GDRX)

Market Capitalization: $1.47 billion

Number of Hedge Fund Holders: 32.16%

Analyst Upside Potential: 30

GoodRx Holdings, Inc. (NASDAQ:GDRX) is one of the 10 Best Small-Cap Growth Stocks to Buy According to Analysts. On June 10, GoodRx Holdings, Inc. (NASDAQ:GDRX) announced launching a new subscription service focused on erectile dysfunction (ED) treatment. The new service aims to innovate access to ED care by addressing common barriers such as high costs, social stigma, long wait times, and inconvenience.

The key features of GoodRx Holdings, Inc.’s (NASDAQ:GDRX) new subscription service include an All-in-One Solution through which customers can book virtual consultations, get access to FDA-approved medicines, and also get discreet home deliveries. The subscription starts as low as $18 per month, with the final cost depending on the prescribed medication. We recognize that many men delay or entirely avoid treatment for ED due to stigma, costs, and the inconvenience of traditional healthcare pathways,” said Katelyn Pelak, VP and Head of Product at GoodRx Holdings, Inc. (NASDAQ:GDRX).

Moreover, the company also released its latest study on ED, revealing nearly 1 in 3 men in the United States report difficulties with erections, but fewer than 14% use any treatment, largely due to insurance coverage gaps and social stigma.

GoodRx Holdings, Inc. (NASDAQ:GDRX) is a leading US healthcare company that helps consumers save money on prescription medications by providing free access to drug price comparisons, digital coupons, and discounts at over 70,000 pharmacies nationwide. The company operates through a mobile app and website where users can get medications, access telemedicine services to consult doctors online and receive prescriptions without insurance.