10 Promising SmallCap Stocks Under $1 Billion Market Cap

6. Exagen Inc. (NASDAQ:XGN)

Exagen Inc., trading at $7 as of 16th July, is a molecular diagnostics company focused on autoimmune conditions like lupus and rheumatoid arthritis.

Under the leadership of CEO John Aballi, Exagen has transformed into a near-profitable business, benefiting from pricing tailwinds, proprietary biomarkers, and Medicare reimbursement advantages. Innovations in T-cell markers and early kidney disease detection add further upside through improved margins and potential biopharma partnerships.

With strategic interest from players like Labcorp, limited analyst coverage, and multiple upcoming catalysts, Exagen is positioned for a significant re-rating. A conservative valuation suggests 2.5–3x upside, with limited downside given the company’s turnaround, differentiated assets, and strategic relevance in a fast-evolving diagnostic landscape.