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.
A close-up of a computer screen with a graph of the CRSP US Small Cap Value Index.
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.
8. Blend Labs, Inc. (NYSE:BLND)
Market Capitalization: $948.78 million
Number of Hedge Fund Holders: 33
Analyst Upside Potential: 36.87%
Blend Labs, Inc. (NYSE:BLND) is one of the 10 Best Small-Cap Growth Stocks to Buy According to Analysts. On June 9, Blend Labs, Inc. (NYSE:BLND) announced signing a definitive agreement with Covius Services to sell its Title365 Holding Co. Title365 is a national title insurance and settlement services company licensed in 43 states. It serves top lenders, servicers, capital market participants, and home equity originators.
After the acquisition, Title365 will continue partnering with Blend Labs, Inc. (NYSE:BLND) to provide title and closing services to Blend customers. Moreover, Kirby Hulbert, President of Title365 will join the Covius Settlement Services team. The transaction amount was not disclosed in the press release and is subject to certain required third-party consents and regulatory approvals. It is expected to close in the coming months.
This is an exciting next chapter for Blend, said Nima Ghamsari, CEO and Co-founder of Blend Labs, Inc. (NYSE:BLND). The CEO highlighted that partnering with leaders like Covius enables them to sharpen their focus on becoming a key player in the financial services industry.
Blend Labs, Inc. (NYSE:BLND) is a financial digital origination platform that helps banks, credit unions, and mortgage lenders streamline and automate the process of originating loans and opening deposit accounts.
7. Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT)
Market Capitalization: $1.69 billion
Number of Hedge Fund Holders: 41
Analyst Upside Potential: 43.99%
Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) is one of the 10 Best Small-Cap Growth Stocks to Buy According to Analysts. On June 10, Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) announced enrolling the first child in its Phase 2 clinical trials called INTEGUMENT-INFANT. The trial aims to test the safety and tolerability of an investigational topical treatment, ZORYVE cream 0.05% in infants aged 3 months to less than 24 months with mild to moderate atopic dermatitis.
There are currently very few approved topical or systemic therapies for infants with atopic dermatitis. Atopic dermatitis lifelong chronic condition in children that can impact the entire family by significantly disrupting sleep, increasing the risk of skin infections, and leading to developmental and emotional strain for both the child and caregivers, said Patrick Burnett, MD, PhD, FAAD, chief medical officer at Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT).
This INTEGUMENT-INFANT trial builds on previous positive results from the MUSE study, which also evaluated roflumilast cream 0.05% in infants with atopic dermatitis. ZORYVE cream contains roflumilast, a highly potent and selective phosphodiesterase-4 inhibitor designed for topical use.
Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) is a commercial-stage dermatology company focused on developing innovative treatments for immune-mediated skin diseases. It develops targeted topical therapies for major inflammatory skin conditions such as atopic dermatitis and alopecia areata.
6. Docebo Inc. (NASDAQ:DCBO)
Market Capitalization: $1.14 billion
Number of Hedge Fund Holders: 18
Analyst Upside Potential: 44.28%
Docebo Inc. (NASDAQ:DCBO) is one of the 10 Best Small-Cap Growth Stocks to Buy According to Analysts. On June 9, analyst Yi Fu Lee from Cantor Fitzgerald initiated coverage on Docebo Inc. (NASDAQ:DCBO) assigning an Overweight rating with a price target of $35 on the stock. This marks the first rating on the stock from Cantor Fitzgerald indicating firms’ confidence in the company’s potential and the overall industry condition.
Docebo Inc. (NASDAQ:DCBO) is a leading learning platform that uses AI and innovation as its backbone. The company announced results for its fiscal first quarter of 2025 on March 9. The subscription revenue grew 13% year-over-year to $54.2 million, representing 95% of the total revenue. Whereas the total revenue also grew 11% year-over-year to $57.3 million. Notably, net income came in at $1.5 million. Both the revenue and EPS exceed market expectations, with revenue beating the consensus by $0.2 million and EPS topped by $0.05.
Management is anticipating second-quarter revenue between $59.0 million and $59.2 million. It expects subscription revenue to grow about 1.5% higher than overall company revenue.
Docebo Inc. (NASDAQ:DCBO) provides an AI-powered learning platform that helps organizations create, manage, and deliver personalized training programs at scale. The company’s platform enables organizations to deliver advanced learning experiences for its employees to drive measurable growth.
5. Agios Pharmaceuticals, Inc. (NASDAQ:AGIO)
Market Capitalization: $1.95 billion
Number of Hedge Fund Holders: 33
Analyst Upside Potential: 50.68%
Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) is one of the 10 Best Small-Cap Growth Stocks to Buy According to Analysts. On June 9, Analyst Emily Bodnar of H.C. Wainwright maintained a Buy rating on Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) and reduced the price target from $61 to $56. The reiteration comes after the company announced its commercial and distribution agreement with Avanzanite for its drug Pyrukynd in Europe, Switzerland, and the UK.
The analyst said that the recent agreement of Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) with Avanzanite mirrors its previously successful collaboration in the Gulf region. The agreement will enable the company to concentrate on the US market while leveraging Avanzanite’s expertise in European rare disease markets. Moreover, Pyrukynd has already been approved for pyruvate kinase deficiency and is expected to receive FDA approval for thalassemia and potentially EMA approval in 2026.
Analyst Emily Bodnar lowered the price target due to the agreement’s revenue split which initially benefits Avanzanite. However, Bodnar views it as a capital-efficient way to accelerate Agios’ entry and revenue growth in Europe.
Agios Pharmaceuticals, Inc. (NASDAQ:AGIO) is a biopharmaceutical company specializing in developing innovative therapies for patients with rare diseases. Its main product, Pyrukynd (mitapivat), is the first disease-modifying treatment for adults with pyruvate kinase deficiency, a form of hemolytic anemia.
4. Red Cat Holdings, Inc. (NASDAQ:RCAT)
Market Capitalization: $800.05 million
Number of Hedge Fund Holders: 14
Analyst Upside Potential: 51.34%
Red Cat Holdings, Inc. (NASDAQ:RCAT) is one of the 10 Best Small-Cap Growth Stocks to Buy According to Analysts. On June 9, Red Cat Holdings, Inc. (NASDAQ:RCAT) publicly expressed its strong support for recent executive orders by the White House to boost US leadership in uncrewed aircraft systems (UAS). The orders focus on easing regulatory hurdles and modernizing federal approval processes to prioritize American-made drones.
Along with easing regulatory hurdles the order also emphasized expanding detection and mitigation authorities for drones. Moreover, it supported regulations to accelerate drone use in federal and commercial sectors. These executive orders send a clear signal that the U.S. is serious about enabling a secure domestic drone industry that supports mission-critical outcomes for the US and its allies, said Brendan Stewart, VP of Regulatory Affairs at Red Cat Holdings, Inc. (NASDAQ:RCAT). The company stands ready to meet this moment with its proven, electric Vertical Takeoff and Landing systems, added Stewart. The company’s electric Vertical Takeoff and Landing (eVTOL) uses advanced AI and computer vision technologies from partners like Palantir and Athena AI. These technologies enable the systems to be mission-ready for both military and government use.
Red Cat Holdings, Inc. (NASDAQ:RCAT) is a drone technology company that designs, develops, and sells advanced unmanned aerial systems. Its products include the Black Widow, used by the US Army, and other drones optimized for reconnaissance, public safety, and precision strike missions.
3. TechTarget, Inc. (NASDAQ:TTGT)
Market Capitalization: $548.32 million
Number of Hedge Fund Holders: 8
Analyst Upside Potential: 61.73%
TechTarget, Inc. (NASDAQ:TTGT) is one of the 10 Best Small-Cap Growth Stocks to Buy According to Analysts. On June 9, analyst Jason Kreyer from Craig-Hallum reiterated a Buy rating on TechTarget, Inc. (NASDAQ:TTGT) with a price target of $12. The reiterated bullish sentiment comes after the company announced its strategic partnership and integration with Outreach, a leading workflow-first sales execution platform.
The partnership will connect TechTarget, Inc.’s (NASDAQ:TTGT) Priority Engine platform with Outreach’s sales workflows. The Priority Engine is a proprietary purchase intent data platform that will allow Outreach to seamlessly identify and engage prospects who are actively researching relevant topics and solutions.
Roughly 9 out of 10 initial conversations with Business Development Representatives never progress through the sales cycle, said Jillian Coffin, Senior Vice President of Customer Enablement and Strategy, Informa TechTarget, Inc. (NASDAQ:TTGT). This new integration addresses the challenge by providing relevant and timely data to maximize conversions and pipeline impact, added Coffin.
TechTarget, Inc. (NASDAQ:TTGT) is a B2B technology marketing and data company. It provides purchase intent data and marketing services to help technology vendors identify and reach technology decision-makers. Its core offerings include the Priority Engine platform and BrightTALK platform which supports customers in creating and promoting webinars and virtual events.
2. Disc Medicine, Inc. (NASDAQ:IRON)
Market Capitalization: $1.84 billion
Number of Hedge Fund Holders: 43
Analyst Upside Potential: 70.53%
Disc Medicine, Inc. (NASDAQ:IRON) is one of the 10 Best Small-Cap Growth Stocks to Buy According to Analysts. On June 11, analysts from Raymond James resumed coverage of Disc Medicine, Inc. (NASDAQ:IRON) with a strong Buy rating and a price target of $89. The resumed coverage comes as the company released its research note on Biotech names.
The firm highlighted a favorable risk/reward profile in the biotech sector. It noted that while companies with a high probability of success for lead assets inspire higher conviction, investments in less de-risked assets like Disc Medicine, Inc. (NASDAQ:IRON) could yield the most outsized returns. The firm sees more than $1 billion potential for the company’s drug bitopertin, with an expected market penetration of about 30%-35%, owing to its disease-modifying agent capabilities X-linked protoporphyria.
Disc Medicine, Inc. (NASDAQ:IRON) is a clinical-stage biopharmaceutical company focused on discovering therapies for serious hematologic diseases. Its pipeline includes drug candidates like bitopertin for erythropoietic porphyrias and Diamond-Blackfan Anemia, DISC-0974 for anemia related to myelofibrosis and chronic kidney disease, and DISC-3405 for polycythemia vera and other blood disorders.
1. Exodus Movement, Inc. (NYSEAMERICAN:EXOD)
Market Capitalization: $837.60 million
Number of Hedge Fund Holders: 4
Analyst Upside Potential: 85.19%
Exodus Movement, Inc. (NYSEAMERICAN:EXOD) is one of the 10 Best Small-Cap Growth Stocks to Buy According to Analysts. On June 10, Exodus Movement, Inc. (NYSEAMERICAN:EXOD) released its treasury and monthly metrics update for May 2025. The company reported 2.2 million Monthly Active Users (MAUs) as of May 31, 2025, with 675,000 Passkey Wallets.
The MAUs grew significantly from 1.6 million at the end of Q1 2025. Passkeys Wallets represent a new, innovative wallet onboarding technology that allows users to create wallets quickly and securely without traditional passwords, enhancing user experience and scalability. JP Richardson, CEO Exodus Movement, Inc. (NYSE AMERICAN:EXOD) noted that the MAUs benefitted from promotions aimed at Passkeys Wallets. However, the company does not expect this growth to reoccur in June.
In addition, the company processed a total of $486 million in exchange volume during May 2025. Around $69 million or 14% of this volume came from XO Swap partners, indicating strong collaboration and integration within the crypto ecosystem.
Exodus Movement, Inc. (NYSEAMERICAN:EXOD) is a fintech company that provides secure and easy-to-use cryptocurrency software solutions for individuals and businesses. The company offers multi-asset, self-custodial wallets that give users full control over their digital assets. It also offers tools like Passkeys Wallet for seamless wallet onboarding and XO Swap for efficient crypto swap aggregation.
While we acknowledge the potential of EXOD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than EXOD and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
