In this article, we will take a look at some of the best small company stocks to invest in.
Most of the time, a company is overlooked because of its mere capitalization. However, such enterprises are similar to a seed that is small in size but can turn into a big tree, only under the right environment. Not weighed down by fame or fortune, but by a quick and focused breakthrough moment, these stocks are creative yet underestimated.
In simple language, small company stocks, also known as small-cap stocks, are shares of smaller-sized publicly traded companies usually with a market capitalization between $300 million and $2 billion. The common features of these stocks include, but are not limited to, high growth potential, away from the investor eye, innovation, and volatility. But it takes a skilled investor to spot the hidden gem.
As the analysts at Research Affiliates highlight,
“With asset owners now exploring various avenues to diversify their equity allocations, small-cap stocks have emerged as more than just a diversification tool – they represent a compelling investment opportunity.”
A closeup of investor hands holding a small-cap investment security.
Our Methodology
We have scanned a list of 10 best small-cap stocks to invest in using Finviz screener while filtering for market capitalization between $300 million and $2 billion. These stocks have upside potential and are among analysts’ favorites. These are then ranked according to the upside potential, determined via the one-year price targets by analysts at Yahoo Finance, in an ascending order.
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. SmartStop Self Storage REIT, Inc. (NYSE:SMA)
Market Capitalization: $1.13 billion
Upside potential as of June 18, 2025: 9.81%
On Wednesday, analysts at Raymond James raised the price target for SmartStop Self Storage REIT, Inc. (NYSE:SMA) to $44.00, up from $42.00, while upgrading to Strong Buy from Outperform. This confidence is driven by the company’s high-quality portfolio and operating platform.
Over the last few months, SmartStop Self Storage REIT, Inc. (NYSE:SMA) has returned quite impressive returns. While the market’s year-to-date return stands at merely 1.72%, the company reported an impressive 9.24%. This shows that the giant is just getting started.
From higher organic growth potential and margin upside to external growth impact because of its smaller size, the firm highlighted various reasons for a turnaround. The company has witnessed a revenue growth of 5.34% in the last twelve months, and with analysts anticipating 9% growth for the current fiscal year, SMA seems to be a hidden gem.
SmartStop Self Storage REIT, Inc. (NYSE:SMA) is a California-based company that owns and operates self-storage facilities in the United States and Canada. This self-managed REIT has a fully integrated operations team of around 590 self-storage professionals. With 220 operating properties in 23 states, the company is committed to delivering value to its investors and customers.
9. Array Technologies, Inc. (NASDAQ:ARRY)
Market Capitalization: $1.14 billion
Upside potential as of June 18, 2025: 19.81%
Oppenheimer, a leading global financial institution, reaffirmed its Outperform rating on Array Technologies, Inc. (NASDAQ:ARRY) with a price target of $13.00, citing the company’s latest APA Solar acquisition.
The announcement came as investors pursue exposure to utility-scale solar activity, a sector poised to grow following the Senate’s budget news on Monday. This racking and pilings company is set to be acquired at a valuation of 7.6x trailing twelve-month EBITDA, excluding 45X tax credits, allowing Array Technologies, Inc. (NASDAQ:ARRY) to expand its geographic footprint, mainly in colder and rockier regions where APA Solar is well-positioned.
Additionally, the agreement will also bring fixed tilt solutions to the company’s offerings, establishing Array Technologies, Inc. (NASDAQ:ARRY) as a full-spectrum provider of ground mount infrastructure solutions for solar developers. What’s truly exciting is that the company expects to realize at least $31 million in tax savings, with additional synergies across both the supply chain and sales operations.
Array Technologies, Inc. (NASDAQ:ARRY) is a New Mexico-based provider of solar tracking technology products with two main segments: Array Legacy Operations and STI Operations. Incorporated in 1987, the company’s core offerings include DuraTrack HZ v3, Array STI H250, Array OmniTrack, Array SkyLink, and SmarTrack.