Our list today highlights the 10 Hottest SMID-Cap Stocks So Far In 2025.
SMID-caps, or Small- and mid-cap stocks, are often overlooked segments of the market. They are like those promising boxers training outside the ring while the heavyweight champions dominate the headlines. While many investors expect a rotation into SMID equities as large-cap valuations stretch to elevated levels, SMID stocks still lag their larger peers. Year-to-date, total returns for small caps (measured by the Russell 2500 Index) and mid-caps (measured by the S&P MidCap 400 Index) stand at approximately 3% and 1%, versus an over 12% return for the S&P 500 Index.
However, expectations for SMID-cap stocks remain constructive. In a November 12 CNBC interview, Scott Chronert, U.S. equity strategist at Citi, discussed why he favors small- and mid-cap equities. He noted that while the AI-related large-cap technology names have driven performance this year and should continue to contribute next year, investors are beginning to look further down the market-cap spectrum for incremental growth.
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Chronert pointed out that toward the end of the year, the market is increasingly focusing on 2026 earnings. He particularly highlighted that consensus forecasts call for small- and mid-cap companies to move from low-single-digit earnings growth this year to low-double-digit earnings growth in 2026. He connected this to developments during the third-quarter reporting season, where companies in this segment that exceeded expectations and raised guidance for the coming quarters outperformed even the S&P 500. This, as he sees it, suggests improving sentiment.
Chronert likes the SMID space partly because comparisons are easier after two years of earnings contraction. He also sees support from reduced policy uncertainty and potential additional rate cuts, as the smaller firms exhibit a greater economic sensitivity to such factors. Stable macro conditions and accommodative monetary policy could favor small- and mid-caps relative to large-caps.
Historically, some of the strongest rallies have begun when investors shift their focus beyond the market’s largest names and seek growth where expectations are still modest. Progress on the rate cut cycle should also be supportive. In a report published in mid-September 2025, Charlotte Daughtrey, Equity Investment Specialist, Federated Hermes Limited, highlighted:
“US SMID companies tend to outperform in environments where monetary policy is loosening. Historically, in the eight rate-cutting cycles since 1979, US small caps have outperformed their large-cap peers by an average of 6% in the 12 months following the first cut in rates – a powerful precedent for investors seeking cyclical upside.”
With that background, let’s explore the 10 hottest SMID-cap stocks so far in 2025.
Our Methodology
To identify the hottest SMID-cap stocks so far in 2025, we began by screening U.S.-based stocks with market capitalizations between $300 million and $10 billion and share prices above $5 to avoid penny stocks. From this pool, we selected stocks that have delivered year-to-date total returns exceeding 100%, are covered by more than five Wall Street analysts, and are held by at least 15 hedge funds, based on Insider Monkey’s Q2 2025 filings database. Finally, we shortlisted the top 10 stocks with the highest YTD returns and ranked them in ascending order of their respective returns. Additionally, we included data on hedge fund holdings in these companies to provide further insight into investor interest.
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).
Note: All pricing data is as of market close on November 20, 2025.
10 Hottest SMID-Cap Stocks So Far In 2025
10. Viasat Inc. (NASDAQ:VSAT)
Sector/Industry: Technology/Communication Equipment
YTD Total Returns: 257.9%
Market Cap: $4.1 Billion
Number of Hedge Fund Holders: 37
Viasat Inc. (NASDAQ:VSAT) is among the hottest SMID-cap stocks so far in 2025. On November 11, JPMorgan analyst Sebastiano Petti more than doubled his price target on Viasat Inc. (NASDAQ:VSAT) to $50 from $23 and upgraded his rating from Neutral to Overweight, according to TheFly.
Petti pointed to the company’s recent shareholder letter, which gave him more confidence in a potential strategic separation of ViaSat’s Defense and Advanced Technologies division. According to his latest research note, Viasat Inc. (NASDAQ:VSAT) appears to be actively exploring options to unlock shareholder value. However, the timing of such a move may be deferred by a few quarters as the company evaluates its options.
The analyst based his price target revision on a sum-of-the-parts valuation, which suggests that the individual components of ViaSat’s business may be worth more separately than as a whole. While Petti does not anticipate any immediate monetization of ViaSat’s spectrum assets, he believes they hold long-term value.
It should be noted that activist investor Carronade Capital Management had also suggested that Viasat Inc. (NASDAQ:VSAT) split its defence business in the first week of August this year, amid the company’s strategic review. In addition, the company announced its Q2 results the same week, and both pieces of news led to a 50% rally. Since then, the stock has risen 100%.
Overall, Viasat Inc. (NASDAQ:VSAT) stock is up an impressive 258% year to date (as of November 20), driven by strong results and further supported by deal announcements and joint ventures.
Viasat Inc. (NASDAQ:VSAT) is a global communications company that provides high-speed satellite broadband services and secure networking solutions. They serve commercial, government, and military customers worldwide, offering satellite internet, in-flight connectivity, and secure communication solutions.
9. Centrus Energy Corp. (NYSEAMERICAN:LEU)
Sector/Industry: Energy/Uranium
YTD Total Returns: 262.3%
Market Cap: $4.4 Billion
Number of Hedge Fund Holders: 27
Centrus Energy Corp. (NYSEAMERICAN:LEU) is among the hottest SMID-cap stocks so far in 2025. On November 10, Jeff Grampp, an analyst at Northland, maintained his bullish stance on the stocks, assigning an Outperform rating and raising his price target to $300 from $275, according to TheFly.
The company announced third-quarter results on November 5, but Grampp found them a non-event. However, he was somewhat disappointed, as he had expected more updates on the funding development for the domestic enrichment project. As per his analysis, the talks should have progressed in the third quarter.
Grampp also argued that the shutdown may have delayed the developments, and an announcement could come soon. He, therefore, remains bullish on the stock.
Centrus Energy Corp.’s (NYSEAMERICAN:LEU) stock has rallied by over 262% in 2025 (as of November 20), driven by several catalysts, the most significant of which was the Trump administration’s aggressive push to increase the country’s nuclear energy capacity, along with its support for domestic uranium mining and enrichment. When it reached its peak level in mid-October this year, the stock was up as much as 600%, but has since corrected by around 50% to settle at $241 as of November 20.
Centrus Energy Corp. (NYSEAMERICAN:LEU) boasts the American Centrifuge, the world’s most advanced gas centrifuge enrichment technology, which enables the enrichment of High-Assay, Low-Enriched Uranium (HALEU), the required fuel for most next-generation reactors. As of September 2025, the Company’s backlog stood at $3.9 billion, extending through 2040.
Centrus Energy Corp. (NYSEAMERICAN:LEU) is a supplier of nuclear fuel and services to the nuclear power industry. The company supports U.S. energy security through domestic enrichment capabilities and long-term supply agreements.
8. Opendoor Technologies Inc. (NASDAQ:OPEN)
Sector/Industry: Real Estate/Real Estate Services
YTD Total Returns: 285.0%
Market Cap: $5.9 Billion
Number of Hedge Fund Holders: 21
Opendoor Technologies Inc. (NASDAQ:OPEN) is among the hottest SMID-cap stocks so far in 2025. On November 10, BTIG’s Jake Fuller maintained a Hold rating on the company’s stock without assigning a price target. His rating was driven by the company’s new management’s updated strategy, which outlined a renewed push to accelerate home purchases and expand margins.
While Fuller thinks a renewed focus has “struck a chord” with investors, he emphasized that the margin of error is very narrow, and that management’s aggressive stance without the former safeguards “would only work” with extreme precision in pricing homes and correctly timing real-estate markets. This, in the analyst’s view, “feels like a lot to take on faith” and thus he maintained his cautious stance.
The analyst was also not aligned with Opendoor Technologies Inc.’s (NASDAQ:OPEN) current valuation. He stated that with his assumptions, even a return to peak 2022 volume levels at current margin goals “still only pencil us out to value for the stock in the ~$5/share range.” Moreover, he stressed that reaching today’s valuation would require either volumes well above prior peaks or a growth multiple more typical of software companies than “a low-margin, capital-intense business”.
For context, on November 6, new CEO Kaz Nejatian announced his strategy for “refounding Opendoor as a software and AI company.” He outlined a profitability roadmap which hinges on three factors: acquiring more homes to improve scale; boosting unit economics through faster resale cycles and sharper pricing; and holding fixed costs steady to unlock operating leverage. He further added:
“In my first month as CEO, we’ve made a decisive break from the past — returning to the office, eliminating reliance on consultants, and launching over a dozen AI-powered products and features that demonstrate our renewed velocity. Our business will succeed by building technology that makes selling, buying, and owning a home easier and more joyful — not from charging high spreads and hoping the macro saves us.”
Opendoor Technologies Inc. (NASDAQ:OPEN) operates a digital platform for residential real estate that simplifies the buying and selling of homes.
7. Nektar Therapeutics (NASDAQ:NKTR)
Sector/Industry: Healthcare/Biotechnology
YTD Total Returns: 295.1%
Market Cap: $1.1 Billion
Number of Hedge Fund Holders: 18
Nektar Therapeutics (NASDAQ:NKTR) is among the hottest SMID-cap stocks so far in 2025. On November 10, Oppenheimer analyst Jay Olson reaffirmed his Outperform rating on Nektar Therapeutics (NASDAQ:NKTR) and raised its price target to $98. His decision came after the company’s third-quarter update and the release of new clinical data. The analyst was encouraged by new insights from the Phase 2b REZOLVE-AD study, which were unveiled during a presentation at the American College of Allergy, Asthma, and Immunology (ACAAI) conference.
Olson noted that treatment with rezpeg resulted in significant improvements in ACQ-5 scores among patients with atopic dermatitis and a history of asthma. As a result, the new data further reinforces rezpeg’s unique therapeutic profile in the eczema space, as per the analyst.
Not only that, the analyst also notes that the favourable data from the December Phase 2 REZOLVE-AA trial targeting alopecia areata could prove to be a meaningful catalyst, as he believes this study has a “low bar for biologics in this untapped indication.”
The stock has appreciated by around 295% year-to-date, as of November 20. One of the most successful days during this period was June 24, when its share price skyrocketed by 156% after the company reported the successful Phase 2 REZOLVE-AD trial results for rezpegaldesleukin.
Nektar Therapeutics (NASDAQ:NKTR) is a biopharmaceutical company focused on discovering and developing innovative new medicines for cancer, autoimmune disease, and other chronic diseases.
6. Ventyx Biosciences Inc. (NASDAQ:VTYX)
Sector/Industry: Healthcare/Biotechnology
YTD Total Returns: 338.8%
Market Cap: $686 Million
Number of Hedge Fund Holders: 28
Ventyx Biosciences Inc. (NASDAQ:VTYX) is among the hottest SMID-cap stocks so far in 2025. On November 7, TheFly reported that Canaccord Genuity modestly increased its price target on the company’s stock from $14 to $16 while reiterating a Buy rating following the company’s Q3 results report a day earlier.
Canaccord is now factoring in lower operating expenses in the near term, which has led to the upward revision of the target. The firm trimmed its operating cost estimates based on its analysis of the latest results. Additionally, they expect a streamlined clinical development program with fewer ongoing trials than in the first half of 2025, which should also support lower operating expenses.
As per its Q3 results, Ventyx Biosciences Inc. (NASDAQ:VTYX) ended the quarter with $192.6 million in cash (down from $209 million in Q2 2025), providing operational funding into at least the second half of 2026. Management was able to curtail R&D and General & Administrative (G&A) expenses, which helped it narrow its net loss to $22.8 million, down from $35.2 million in the year-ago period.
The company continued to emphasize the progress it has made with its VTX3232 therapy throughout the year. It now expects Phase 2 topline readouts for VTX2735 in recurrent pericarditis in Q4 2025, which will be keenly watched.
Earlier in October, Ventyx Biosciences Inc. (NASDAQ:VTYX) reported positive Phase 2 Study results for VTX3232, which showed significant reductions in cardiovascular risk factors. Investors responded positively, as the share price skyrocketed 71% the day after the announcement. With that, the stock has rallied 339% year-to-date, as of November 20.
Ventyx Biosciences Inc. (NASDAQ:VTYX) is a clinical-stage biopharmaceutical company that focuses on developing oral therapies for patients with autoimmune, inflammatory, and neurodegenerative diseases.
5. Cogent Biosciences Inc. (NASDAQ:COGT)
Sector/Industry: Healthcare/Biotechnology
YTD Total Returns: 344.9%
Market Cap: $5.3 Billion
Number of Hedge Fund Holders: 37
Cogent Biosciences Inc. (NASDAQ:COGT) is among the hottest SMID-cap stocks so far in 2025. On November 13, H.C. Wainwright made a notable upward revision to its outlook on the company, more than doubling its price target from $21 to $50 while reaffirming a Buy rating, according to TheFly.
The investment firm’s increased confidence was driven by positive data from the company’s Phase 3 PEAK trial, which studied the combination of its therapy, bezuclastinib, with sunitinib. Following the announcement, the analysts believe that bezuclastinib plus sunitinib could emerge as the second-line standard of care in gastrointestinal stromal tumors (GIST).
Cogent Biosciences Inc. (NASDAQ:COGT) announced the trial results on November 10, and several analysts saw them as highly positive for the company’s outlook. The company said it plans to submit a new drug application (NDA) to the U.S. Food and Drug Administration (FDA) for bezuclastinib in GIST in the first half of 2026.
Cogent Biosciences Inc. (NASDAQ:COGT) shares skyrocketed 119% on the day of the announcement.
Sara Rothschild, Executive Director at the non-profit organization, The Life Raft Group, which supports GIST patients, stated:
“Imatinib-resistant or intolerant GIST patients have waited nearly 20 years for a new second-line treatment option. The remarkable results of the PEAK study suggest that wait has come to an end.”
Andrew Robbins, Cogent’s President and Chief Executive Officer, called it a historic day for Cogent Biosciences and the GIST patient community. He further stated:
“We are extremely excited to announce positive results from the Phase 3 PEAK trial of bezuclastinib plus sunitinib, which have far surpassed our expectations for the activity of this combination in patients with imatinib-resistant or intolerant GIST. With these incredible results, including a greater than seven-month improvement on mPFS – reducing the rate of progression or death by half – the bezuclastinib combination is poised to become the new standard of care for treatment of second-line GIST patients.”
Cogent Biosciences Inc. (NASDAQ:COGT) is a biotechnology company that develops precision therapies for patients with genetically defined diseases. Their primary focus is on targeting various forms of mastocytosis and gastrointestinal stromal tumors (GIST).
4. Terns Pharmaceuticals Inc. (NASDAQ:TERN)
Sector/Industry: Healthcare/Biotechnology
YTD Total Returns: 371.3%
Market Cap: $2.4 Billion
Number of Hedge Fund Holders: 28
Terns Pharmaceuticals Inc. (NASDAQ:TERN) is among the hottest SMID-cap stocks so far in 2025. On November 17, Evan Seigerman of BMO Capital Markets raised his price target on the stock from $22 to $30, while maintaining an Outperform rating.
The analyst noted that the market continues to underestimate the potential of the company’s drug candidate, TERN-701, in chronic myeloid leukemia (CML). He based this assertion on the Phase 1 CARDINAL data, which demonstrated clear differentiation from current treatment options.
Earlier, on November 3, Terns Pharmaceuticals Inc. (NASDAQ:TERN) announced Phase 1 results showing a 64% molecular response (MMR) rate by 24 weeks in patients with resistant or relapsed chronic myeloid leukemia (CML), a rate notably higher than that of current treatments. The company will present additional data at the 67th Annual Meeting of the American Society of Hematology (ASH) in Orlando, Florida, in December.
On the success, Amy Burroughs, chief executive officer of Terns, stated:
“We are pleased that data from our CARDINAL trial have been selected for oral presentation at ASH. These data further validate the potential of TERN-701 to be a new, game-changing therapy for CML,” She further added, “These emerging data strongly reinforce our conviction that TERN-701 has the potential to be a best-in-disease therapy, with broad opportunity across all CML treatment lines. We look forward to sharing additional data in December.”
The results prompted a strong investor response, as the stock skyrocketed nearly 95% between November 3 and 4.
Terns Pharmaceuticals Inc. (NASDAQ:TERN) is a clinical-stage biopharmaceutical company developing innovative therapies for cancer.
3. ThredUp Inc. (NASDAQ:TDUP)
Sector/Industry: Consumer Discretionary/Internet Retail
YTD Total Returns: 400.7%
Market Cap: $871 Million
Number of Hedge Fund Holders: 25
ThredUp Inc. (NASDAQ:TDUP) is among the hottest SMID-cap stocks so far in 2025. On November 4, Matt Koranda, an analyst at Roth MKM, reaffirmed his Buy rating on thredUP with an unchanged price target of $11. Notably, Koranda had initiated coverage of the stock on October 30, and this update confirms his conviction in the stock.
Koranda’s rating reaffirmation came after the company’s Q3 2025 results on November 3. For Q3, the company’s revenue surged 34% year over year to $82.2 million, which came in 6% ahead of the street estimate. Management attributed this strong topline growth to its recent investments in marketing and inbound processing, as well as to the launch of new customer-facing products.
With these efforts, the company witnessed a record 54% year-over-year growth in new buyers in the quarter and a 26% surge in trailing twelve-month active buyers. Higher average selling prices also led to a 10-basis-point improvement in gross margin to 79.4%. Adjusted EBITDA margin also expanded substantially to 4.6%, as compared to 0.5% in Q3 2024.
Management raised its revenue guidance, supported by positive business trends. Compared to their earlier guidance, they raised their Q4 revenue expectations by $3 million to $76-$78 million, which was ahead of the consensus of $74.7 million. As a result, FY 2025 revenue guidance was also raised to $307-$309 million from $298-$302 million earlier. This stood 2% above the consensus at the midpoint of the guidance range and reflected an 18% year-over-year growth. That said, management maintained their gross and EBITDA margin guidance.
ThredUp Inc. (NASDAQ:TDUP) stock has rallied over 400% year to date, as of November 20. Still, the strong Buy-rated consensus and the 1-year median price target upside of 80% indicate strong positioning for the company.
ThredUp Inc. (NASDAQ:TDUP) operates an online resale marketplace for apparel, footwear, and accessories, allowing consumers to buy and sell second-hand items.
2. Celcuity Inc. (NASDAQ:CELC)
Sector/Industry: Healthcare/Biotechnology
YTD Total Returns: 618.1%
Market Cap: $4.4 Billion
Number of Hedge Fund Holders: 15
Celcuity Inc. (NASDAQ:CELC) is among the hottest SMID-cap stocks so far in 2025. Following recent clinical progress, Wolfe Research initiated coverage on Celcuity on November 17, with an Outperform rating and a $110 price target, according to TheFly.
The firm highlighted the company’s strong momentum following the recent Phase 3 success for gedatolisib in second-line PIK3CA-WT breast cancer. With that success, it believes that the upcoming PIK3CA-mt readout should be a key catalyst in 2026. In addition, Wolfe Research believes that continued clinical progress has strengthened the company’s strategic value, positioning Celcuity as a compelling acquisition target for large pharmaceutical companies.
On the same day, November 17, the company announced that it had submitted its New Drug Application (NDA) to the U.S. Food and Drug Administration (“FDA”) for gedatolisib.
Earlier, on October 18, the company had announced detailed efficacy and safety results from the PIK3CA wild-type (“WT”) cohort of the Phase 3 VIKTORIA-1 clinical trial of gedatolisib at the European Society for Medical Oncology (ESMO) Congress. The data indicated a significant improvement through the therapy, with up to a 76% reduction in the risk of disease progression or death.
Celcuity Inc. (NASDAQ:CELC) is a clinical-stage biotechnology company pursuing the development of targeted therapies for oncology.
1. Cidara Therapeutics Inc. (NASDAQ:CDTX)
Sector/Industry: Healthcare/Biotechnology
YTD Total Returns: 716.8%
Market Cap: $6.9 Billion
Number of Hedge Fund Holders: 34
Cidara Therapeutics Inc. (NASDAQ:CDTX) tops our list of the hottest SMID-cap stocks so far in 2025 with a 717% share price surge year-to-date. Following the acquisition announcement by Merck & Co. Inc. (NYSE:MRK), Guggenheim analyst Seamus Fernandez downgraded his rating on Cidara Therapeutics from Buy to Neutral on November 17, according to TheFly. Before the deal, Fernandez had assigned a price target of $167, but after the downgrade, he raised it to the offer price of $221.5.
On November 14, Merck announced the acquisition of Cidara Therapeutics Inc. (NASDAQ:CDTX) in an all-cash deal at $221.5 per share, valuing the transaction at $9.2 billion. The offer price represented a 109% premium over the November 13 closing price of $105.99. Under the deal’s terms, a Merck subsidiary will acquire all of Cidara’s outstanding shares through a tender offer and is expected to close the deal in the first quarter of 2026, after receiving required approvals.
With this deal, Merck plans to expand its infectious disease portfolio with Cidara’s lead drug-Fc conjugates (DFC) candidate, CD388, a late-stage, long-acting antiviral designed to prevent influenza in people at high risk of complications. CD388 is currently in Phase 3 (ANCHOR Study) and has held Breakthrough Therapy and Fast Track designations following positive Phase 2b results.
According to reports, this addition should help Merck offset revenue declines from upcoming patent expirations of its key drug, Keytruda. Underpinning the importance of this deal, Merck CEO Rob Davis noted that CD388 is an “important driver of growth through the next decade.”
On the day of the announcement, Cidara Therapeutics Inc.’s (NASDAQ:CDTX) stock rallied by over 105% to close near the offer price. With that, the stock has rallied 717% year to date.
Apart from Guggenheim, analysts, including those from H.C. Wainwright, JPMorgan, and RBC Capital, also downgraded the stock to Hold. Morgan Stanley analyst Maxwell Skor expects the deal to sail through as per plans, and thus downgraded the stock to Equal Weight, raising his price target to the offer price of $221.5.
Cidara Therapeutics Inc. (NASDAQ:CDTX) is a clinical-stage biotechnology company. It develops anti-infectives for the treatment and prevention of fungal, bacterial, and viral pathogens.
While we acknowledge the potential of CDTX 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 CDTX and that has 100x upside potential, check out our report about this cheapest AI stock.
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