In this article, we will look at the 10 Small-Cap Stocks With Huge Growth Potential.
On February 19, Ben Snider, Goldman Sachs chief U.S. equity strategist, appeared on CNBC’s ‘Money Movers’ to talk about his playbook for equities, among other things. He was of the view that the circumstances are quite as expected, as the economic data has been solid, and we are wrapping up the fiscal Q4 earnings season, which was solid as well. The big surprise, looking at the markets, is the effect of AI uncertainty on large parts of the S&P. It is pretty remarkable, according to him, given the strength of large parts of the equity market, the S&P is about flat year to date. He thinks this is because the AI narrative has shifted from being pure optimism to a balance of optimism and disruption.
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He further stated that purely from a compositional perspective, the large weight in tech has been a major tailwind for the index in the past few years, even as the economy was maybe not as strong as many investors had hoped. Now, that large tech component is acting as a bit of a drag, so if you look at the equal-weight S&P, for example, that is up about 5% or 6%, you have about 350 out of 500 S&P stocks up on the year, seeing a pretty good market. But in aggregate, the tech weight is becoming a little bit of a headwind.
With these market trends in view, let’s look at the best small-cap stocks with huge growth potential.
Our Methodology
We sifted through the Finviz stock screener to compile a list of the best small-cap stocks that analysts are bullish on (with over 50% upside) and selected the top 10 most popular among elite hedge funds as of Q3 2025. We sourced the hedge fund data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on February 24.
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 Small-Cap Stocks With Huge Growth Potential
10. Intapp (NASDAQ:INTA)
Intapp (NASDAQ:INTA) is one of the best small-cap stocks with huge growth potential. On February 23, Intapp (NASDAQ:INTA) and Harvey announced a strategic partnership to bring industry-standard ethical wall enforcement directly into Harvey’s platform.
Management reported that the partnership combines two complementary AI platforms, bringing Harvey, a generative AI platform for legal professionals, together with Intapp, which applies AI to the business of law. The integration can allow the two companies to address the central challenge that is being faced by every film deploying AI at scale: ensuring that AI-generated work respects the same professional responsibility obligations that govern all other firm activity.
Intapp (NASDAQ:INTA) further reported that under the partnership, Intapp Walls for AI will ensure that compliance obligations are respected in interactions within Harvey’s enterprise AI deployments. It added that with the integration, the existing Intapp Walls for AI policies would automatically sync with Harvey’s access and sharing controls across Assistant, Vault, and Workflows. According to management, the firms deploying Harvey with Intapp Walls can be confident that every AI interaction is auditable, permissioned, and compliant with applicable ethical walls and firm policies.
Intapp (NASDAQ:INTA) provides information technology services, with its offerings including industry-specific, cloud-based software solutions for the professional and financial services industry globally.
9. Grail Inc. (NASDAQ:GRAL)
Grail Inc. (NASDAQ:GRAL) is one of the best small-cap stocks with huge growth potential. On February 20, Baird cut the price target on Grail Inc. (NASDAQ:GRAL) to $82 from $113 while maintaining an Outperform rating on the shares. The rating update came after the announcement that its NHS study missed its primary endpoint.
The same day, Canaccord also cut the price target on Grail Inc. (NASDAQ:GRAL) to $80 from $105 while maintaining a Buy rating on the shares. The firm told investors that although it is disappointed with the company’s NHS-Galleri top-line results and acknowledges that the path forward may be less certain, it still believes that the after-hours selloff, nearly 50%, is an overreaction. It thus remains confident in the NHS Galleri results despite missing the primary endpoint.
The rating updates came after Grail Inc. (NASDAQ:GRAL) reported its fiscal Q4 and full year 2025 results on February 19, with the total revenue in fiscal Q4 growing 14% year-over-year to $43.6 million and the U.S. Galleri revenue growing 31% year over year to $41.3 million. Total revenue for the full year rose 17% year over year to $147.2 million, while the U.S. Galleri revenue grew 26% year over year to $136.8 million.
Grail Inc. (NASDAQ:GRAL) is a commercial-stage healthcare company that develops a technology for the early detection of cancer. The company employs software, machine learning, and automation for the identification and detection of multiple deadly cancer types in earlier stages.
8. Upwork Inc. (NASDAQ:UPWK)
Upwork Inc. (NASDAQ:UPWK) is one of the best small-cap stocks with huge growth potential. On February 11, Goldman Sachs cut the price target on Upwork Inc. (NASDAQ:UPWK) to $27 from $28 while maintaining a Buy rating on the shares. The firm told investors in a research note that management produced a solid set of operating results with revenue and adjusted EBITDA at or slightly above the high end of its previously given range of guidance in its fiscal Q4 report and forward commentary.
In another development, Scotiabank also cut the price target of Upwork Inc. (NASDAQ:UPWK) to $15 from $17 on February 10, maintaining a Sector Perform rating on the shares. It stated that it is awaiting evidence that AI is expanding the user base instead of just deepening engagement.
Upwork Inc. (NASDAQ:UPWK) also received a rating update from RBC Capital the same day, with the firm bringing the price target on the stock down to $20 from $24 while maintaining a Sector Perform rating on the shares. It was of the view that while the company’s fiscal Q4 print showed some encouraging directional indicators, the shape of the year looking steeper will drive some investor uncertainty on how achievable the company’s big picture turnaround looks.
Upwork Inc. (NASDAQ:UPWK) operates an online working marketplace that connects professionals and agencies with businesses. Its marketplace offers are specialized for clients looking to hire.
7. Braze Inc (NASDAQ:BRZE)
Braze Inc (NASDAQ:BRZE) is one of the best small-cap stocks with huge growth potential. Stifel cut the price target on Braze Inc (NASDAQ:BRZE) to $40 from $45 on February 9 and maintained a Buy rating on the shares, telling investors that a flurry of announcements from model providers and AI-natives have recently driven Braze Inc (NASDAQ:BRZE) sentiment sharply lower. Stifel, however, sees the company as a potential AI winner and believes that it is “a prime example of a company with an overlooked moat”.
In a separate development, Piper Sandler cut the price target on Braze Inc (NASDAQ:BRZE) to $30 from $50 on February 2, reiterating an Overweight rating on the shares after a transfer of coverage. The firm told investors that it downgraded three names and cut price targets across the platforms and apps group, stating that “seat-compression and vibe coding narratives could set a ceiling on multiples.”
Braze Inc (NASDAQ:BRZE) also received a rating update from Goldman Sachs on January 28, with the firm lowering the price target on the stock to $45 from $55 while maintaining a Buy rating on the shares.
Braze Inc (NASDAQ:BRZE) operates a customer relationship management platform for mobile applications, with the application combining messaging, audience segmentation, analytics, and user support in a single integrated solution. The company offers push notifications, in-app messages, email, and news feed services.
6. Extreme Networks, Inc. (NASDAQ:EXTR)
Extreme Networks, Inc. (NASDAQ:EXTR) is one of the best small-cap stocks with huge growth potential. On January 29, UBS cut the price target on Extreme Networks, Inc. (NASDAQ:EXTR) to $17 from $21 and maintained a Neutral rating on the shares, telling investors that it is remaining on the sidelines amid “mixed” Q2 metrics.
In a separate development, B. Riley Securities reiterated a Buy rating on Extreme Networks, Inc. (NASDAQ:EXTR) on January 28, setting a price target of $26.00. The rating updates came after Extreme Networks, Inc. (NASDAQ:EXTR) announced its fiscal Q2 2026 financial results on January 28, with revenue for the quarter reaching $317.9 million, up 14% year-over-year and up 2.5% quarter-over-quarter. SaaS ARR was $226.8 million, up 25.2% year-over-year and 4.9% quarter-over-quarter. Management further reported that the GAAP diluted EPS for the quarter reached $0.06, compared to $0.06 last year and $0.04 last quarter.
Kevin Rhodes, Executive Vice President and Chief Financial Officer, stated that the company’s fiscal Q2 results exceeded expectations for profitability and revenue, and reflected the leverage in its business model, where earnings growth exceeds revenue growth by 10 percentage points.
Extreme Networks, Inc. (NASDAQ:EXTR) is involved in the development and marketing of network infrastructure equipment and related software. It designs, develops, manufactures wired, wireless, and software-defined wide area-network infrastructure equipment, software, and cloud-based network management solutions.
5. Nuvation Bio Inc. (NYSE:NUVB)
Nuvation Bio Inc. (NYSE:NUVB) is one of the best small-cap stocks with huge growth potential. Nuvation Bio Inc. (NYSE:NUVB) announced on February 9 the finalization of a protocol amendment to the ongoing global SIGMA study of safusidenib that expands it to a Phase 3 trial. Safusidenib is a novel, oral, potent, brain-penetrant targeted inhibitor of mutant IDH1, and SIGMA is involved in the evaluation of the efficacy and safety of safusidenib versus placebo for the maintenance treatment of patients with high-risk or high-grade IDH1-mutant astrocytoma following standard-of-care.
Nuvation Bio Inc. (NYSE:NUVB) stated that the new protocol expands patient eligibility in the registrational portion of the trial and includes those with grades 2 and 3 IDH1-mutant astrocytoma with high-risk features and grade 4 IDH1-mutant astrocytoma, after standard-of-care radiation or chemoradiation and adjuvant temozolomide.
In a separate development, Truist lifted the price target on Nuvation Bio Inc. (NYSE:NUVB) to $13 from $11 on January 27, maintaining a Buy rating on the shares. The update came as part of a broader research note previewing fiscal Q4 earnings in biotech. The firm stated that it believes the Ibtrozi franchise has shown robust opportunity out of the gate, with stronger-than-anticipated uptake positioning Ibtrozi as the ROS1 agent of choice versus competitors despite seasonal headwinds.
Nuvation Bio (NYSE:NUVB) is a biopharmaceutical company that develops therapeutic and differentiated candidates to tackle the gaps in oncology. It is advancing several clinical-stage candidates, including a bromodomain and extra-terminal (BET) inhibitor, a ROS1 inhibitor, a mutant isocitrate dehydrogenase 1 (mIDH1) inhibitor, and a drug-drug conjugate (DDC).
4. Alphatec Holdings, Inc. (NASDAQ:ATEC)
Alphatec Holdings, Inc. (NASDAQ:ATEC) is one of the best small-cap stocks with huge growth potential. On TD Cowen cut the price target on Alphatec Holdings, Inc. (NASDAQ:ATEC) to $20 from $27 on January 26, maintaining a Buy rating on the shares after a transfer of coverage. The firm sees the company’s “growth vectors” as not being fully appreciated in Street expectations, which creates potential upside to estimates.
Alphatec Holdings, Inc. (NASDAQ:ATEC) also received a rating update from Lake Street on January 20, reiterating a Buy rating on the shares and setting a price target of $25.
In its preliminary financial results for fiscal Q4 and the full-year ended December 31, 2025, Alphatec Holdings, Inc. (NASDAQ:ATEC) announced that the preliminary total revenue rose approximately 25% in the full year 2025. Management stated that strong surgeon adoption drove full-year 2025 surgical revenue growth of 26%, with surgical volume growth of 24% and average revenue per procedure growth of 2%.
Strong revenue growth is continually driving leverage, with the company reaffirming its full-year 2025 adjusted EBITDA guidance of $91 million. Alphatec Holdings, Inc. (NASDAQ:ATEC) also provided a financial outlook for full year 2026, stating that it expects full-year 2026 total revenue of $890 million.
Alphatec Holdings, Inc. (NASDAQ:ATEC) designs, develops, and markets spinal fusion technology products and solutions to treat spinal disorders. The company’s offerings include intra-operative information and neuromonitoring technologies, fixation systems, access systems, interbody implants, and various biologics offerings.
3. Payoneer Global Inc. (NASDAQ:PAYO)
Payoneer Global Inc. (NASDAQ:PAYO) is one of the best small-cap stocks with huge growth potential. Payoneer Global Inc. (NASDAQ:PAYO) announced on February 17 plans to launch a suite of stablecoin capabilities embedded within the Payoneer platform. The new capabilities would be powered by Bridge, a leading stablecoin infrastructure platform and a Stripe company, allowing businesses to securely receive, send, and hold stablecoins as part of their day-to-day global financial operations. Payoneer Global Inc. (NASDAQ:PAYO) stated that it partnered with Bridge for the inclusion of complete, end-to-end stablecoin workflows directly embedded in the Payoneer platform.
In a separate development, Payoneer Global Inc. (NASDAQ:PAYO) announced on January 29 the expansion of its global payment platform with new collection capabilities in Indonesia and enhanced local collection services in Mexico. Through the additions, customers would be able to transact and receive funds from local buyers and e-commerce platforms faster and more cost-effectively, thereby allowing businesses across new growth markets as global trade flows continue to evolve.
Payoneer Global Inc. (NASDAQ:PAYO) is a financial technology company that enables small and medium-sized businesses (SMBs) to do business, transact, and grow globally. Its financial stack offers a suite of cross-border accounts receivable (AR) and accounts payable (AP) capabilities, including multicurrency account capabilities, and includes services such as working capital and funds management.
2. The GEO Group, Inc. (NYSE:GEO)
The GEO Group, Inc. (NYSE:GEO) is one of the best small-cap stocks with huge growth potential. On February 17, Noble Capital cut the price target on The GEO Group, Inc. (NYSE:GEO) to $28 from $35 while maintaining an Outperform rating on the shares. The firm stated that it is lowering its price target to take into account the slower-than-expected growth after the company reported fiscal Q4 results and delivered 2026 guidance.
JonesResearch also cut the price target on The GEO Group, Inc. (NYSE:GEO) to $33 from $37 on February 13, maintaining a Buy rating on the shares and telling investors that it is remaining bullish on all segments, especially the ISAP opportunity. However, it also stated that the ISAP ramp may continue to face headwinds until 100,000 detention capacity is full.
The rating updates came after The GEO Group, Inc. (NYSE:GEO) reported fiscal Q4 and full year 2025 results on February 12, announcing total revenues of $707.7 million in fiscal Q4. Net income for the quarter reached $31.8 million, with an adjusted EBITDA of $126.0 million. Total revenues for the full year 2025 reached $2.6 billion, with a net Income of $254.3 million and adjusted net income of $0.86 per diluted share. Adjusted EBITDA for the year reached $464.4 million.
The GEO Group, Inc. (NYSE:GEO) designs, finances, develops and supports services for processing centers, secure facilities, and community re-entry facilities. Its operations are divided into the following segments: US Secure, Electronic Monitoring and Supervision, Re-entry, and International Services. The US Secure Services segment comprises the US-based public-private partnership correction and detention segment, while the Electronic Monitoring and Supervision Services segment offers services in the US. The International Services segment offers public-private partnership secure services operations in South Africa and Australia, and the Re-entry Services Segment comprises various community-based and re-entry services.
1. BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX)
BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX) is one of the best small-cap stocks with huge growth potential. On February 18, Evercore ISI resumed coverage of BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX) with a Buy rating and set a price target of $17.00. BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX) also received a rating update from Bank of America Securities on January 27, which reaffirmed a Buy rating on the stock with a price target of $15.
In a separate development, BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX) announced on January 23 the completion of its acquisition of Astria Therapeutics, Inc., which was initially announced on October 14, 2025. Management stated that the transaction bolsters the company’s position as a leader in hereditary angioedema (HAE) and boosts its long-term growth trajectory.
BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX) adds navenibart, which is a late-stage, long-acting plasma kallikrein inhibitor currently in Phase 3 clinical development, to its HAE portfolio, which is positioned to considerably improve the treatment experience for HAE patients due to its potential to be the first HAE therapy with every-three and every-six month dosing and a high level of attack control. BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX) also obtained Astria’s early-stage program for atopic dermatitis, STAR0310, for which it has plans to pursue strategic alternatives.
BioCryst Pharmaceuticals Inc. (NASDAQ:BCRX) is a biotechnology company that provides structure-guided drug design to develop oral small-molecule and protein therapeutics to target difficult-to-treat rare diseases.
While we acknowledge the potential of BCRX 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 BCRX and that has 100x upside potential, check out our report about this cheapest AI stock.
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