In this article, we will look at the 10 Fast-Growing Small Cap Stocks to Buy According to Analysts.
On October 1, Francis Gannon, Co-Chief Investment Officer and Managing Director at Royce Investment Partners, released a report analyzing small-cap performance during the third quarter of 2025. During the third quarter, the highest returns were generated by the smallest stocks, as the Russell 2000 index gained 12.4%, outperforming the 8% gain of the Russell 1000 index. Notably, the micro-caps gained the most as the Russell Micro-cap Index rose 17% during the same time. Gannon attributed this long-overdue outperformance to lower rates and a resilient US economy.
Gannon highlighted that usually small-cap growth stocks do better than small-cap value stocks in the early part of a market upswing. However, in Q3 2025, the small-cap value stocks actually returned slightly more (12.6%) than small-cap growth stocks (12.2%). Looking at the returns from April 8, the small-cap growth rose 43.2%, outperforming the 35.3% rise of the small-cap value stocks.
In addition, on November 11, Lauren Romeo, CFA, Portfolio Manager, Principal at Royce Investment Partners, released another report discussing why high-quality small-caps may be poised to reassert leadership in the months. Endorsing the analysis of Gannon, Romeo noted that the initial rebound of the small-caps was led by low-quality/growth stocks. He highlighted that all previous small-cap leadership phases started in a similar fashion, with growth stocks taking the major share in the start, followed by higher-quality/ value companies taking over leadership in the longer term.
With that, let’s take a look at the 10 Fast-Growing Small Cap Stocks to Buy According to Analysts.
Stocks
Our Methodology
To curate the list of 10 Fast-Growing Small Cap Stocks to Buy According to Analysts, we used the Stock Analysis screener, Seeking Alpha, WSJ, CNN, and Insider Monkey’s Q2 2025 hedge funds database as our sources. Using the screener, we aggregated a list of small-cap stocks (Market Cap between $300 million and $2 billion) with at least 50% year-over-year revenue growth, 30% 3-year revenue growth, and more than 30% upside potential. After shortlisting the stocks that fit our criteria, we ranked the stocks in ascending order of the analysts’ upside potential. Lastly, we have also added hedge fund sentiment around each stock sourced from Insider Monkey’s database. Please note that the data was recorded on November 15, 2025.
Note: For the purpose of this article, we excluded clinical-stage companies from the list, focusing only on companies with organic revenue growth.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10 Fast-Growing Small Cap Stocks to Buy According to Analysts
10. Amprius Technologies, Inc. (NYSE:AMPX)
Market Capitalization: $1.47 billion
Year-over-year Revenue Growth: 234.14%
3-Year Revenue Growth: 129.48%
Number of Hedge Fund Holders: 11
Analyst Upside Potential: 37.29%
Amprius Technologies, Inc. (NYSE:AMPX) is one of the Fast-Growing Small Cap Stocks to Buy According to Analysts. On November 12, Amprius Technologies, Inc. (NYSE:AMPX) announced the establishment of Amprius Korea Battery Alliance to strengthen its global partnerships, increase its collaboration with supply chain partners, and diversify its manufacturing network.
This announcement comes at a critical time as the company’s total worldwide contract manufacturing capacity has exceeded 2 GWh. Management noted that the initial members of the alliance include suppliers, battery manufacturers, equipment makers, cell component producers, and important members from South Korea’s investment community.
Through this partnership, Amprius Technologies, Inc. (NYSE:AMPX) aims to advance its joint business development efforts, gain access to advanced technologies, and support the members of the industry through its technical and commercial efforts.
In addition to strengthening its global partnerships, Amprius Technologies, Inc. (NYSE:AMPX) on November 6, announced results for its fiscal Q3 2025. The company grew its revenue by 172.77% year-over-year to $21.43 million, surpassing estimates by $4.62 million. The EPS of negative $0.03 also topped the consensus by $0.03. Management attributed revenue growth to more than four times year-over-year growth in its second-generation SiCore battery shipments.
Following the release, on November 7, Ryan Pfingst from B. Riley Securities raised the firm’s price target on the stock from $11 to $16 and maintained a Buy rating.
Amprius Technologies, Inc. (NYSE:AMPX) develops, manufactures, and markets lithium-ion batteries for mobility applications, focusing on aviation, EVs, and LEVs.
9. Innodata Inc. (NASDAQ:INOD)
Market Capitalization: $1.82 billion
Year-over-year Revenue Growth: 73.57%
3-Year Revenue Growth: 44.57%
Number of Hedge Fund Holders: 16
Analyst Upside Potential: 44.21%
Innodata Inc. (NASDAQ:INOD) is one of the Fast-Growing Small Cap Stocks to Buy According to Analysts. On November 11, BWS Financial analyst Hamed Khorsand maintained a Buy rating on Innodata Inc. (NASDAQ:INOD) with a price target of $110. Earlier on November 7, George Sutton from Craig-Hallum had also maintained a Buy rating on the stock with a price target of $80.
The reiterated positive outlook follows the company’s fiscal Q3 2025 results, announced on November 6. The company grew its revenue by 19.77% to $62.55 million, surpassing estimates by $2.77 million. Moreover, the EPS of $0.24 also topped the consensus by $0.10. Management attributed the growth in revenue and increased profitability to its strategic focus on deepening its relationship with high-dollar value leading tech companies and AI innovation labs.
Notably, management highlighted optimism for further growth in 2026 by announcing verbal confirmations of deal expansion with its largest customer, which could potentially result in substantial revenue. It also announced another verbal confirmation of a deal with another big tech, which could result in $6.5 million annualized revenue run rate.
Hamed Khorsand of BWS Financial noted that the Q3 results depict the company’s ability to broaden its customer base effectively. He highlighted that the existing contracts of the company are expected to drive further revenue growth of at least 45%. Khorsand anticipates a 26% increase in 2026 revenue, considering the current growth trajectory of the company.
Innodata Inc. (NASDAQ:INOD) is a global data engineering company that provides services and platforms for AI data preparation, annotation, transformation, and model deployment.
