In this article, we will look at the 11 Best Small-Cap Growth Stocks to Buy Right Now.
On August 14, Jonathan Krinsky of BTIG joined CNBC for an interview to discuss the sustainability of the recent small-cap rally. He noted that the current situation resembles July 2024, when small caps were mostly flat while the Nasdaq performed well, and after a better-than-expected CPI report, the small caps surged. The current situation is very similar as small-caps have again been flat year-to-date, while the Nasdaq remains strong, and a recent CPI report has pushed small caps higher. This becomes more relevant as the markets are priced in for a September rate cut too.
Krinsky noted that the recent breakout deserves attention; however, the key question remains regarding the sustainability of this momentum. He highlighted that after the last election, the small-caps rose for some time; however, the market lost steam quickly. Regardless, Krinsky continues to see potentially good opportunities in small-caps as the valuations remain low and investors remain heavily uninvested in this sector.
Krinsky also mentioned that the Russell 2000 is now above recent trading highs, around 2300, with a 52-week high near 2466. While this suggests a buying chance, he advises caution and to use tight stops since the setup is similar to last year’s.
With that, let’s take a look at the 11 best small-cap growth stocks to buy right now.
A close-up of an organized portfolio board, monitoring the performance of a diverse array of stocks.
Our Methodology
To curate the list of 11 best small-cap growth stocks to buy right now, we used the Finviz stock screener, CNN, and Yahoo Finance as our sources. Using the screener, we aggregated a list of small-cap growth stocks (market cap between $300 million and $2 billion) with analyst price targets showing more than 25% upside. Lastly, we cross-checked the market capitalization from Yahoo Finance and ranked the stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s Q1 2025 database. Please note that the data was recorded on August 18, 2025.
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).
11 Best Small-Cap Growth Stocks to Buy Right Now
11. Vericel Corporation (NASDAQ:VCEL)
Market Capitalization: $1.831 billion
Analyst Upside Potential: 51.60%
Number of Hedge Fund Holders: 14
Vericel Corporation (NASDAQ:VCEL) is one of the Best Small-Cap Growth Stocks to Buy Right Now. On August 4, Mike Kratky from Leerink Partners raised the firm’s price target on Vericel Corporation (NASDAQ:VCEL) from $50 to $57, while maintaining a Buy rating on the stock.
The analyst noted that the company missed revenue estimates for the fiscal second quarter slightly. However, management’s outlook and strategic plan suggest better results during the second half of the year. Kratky noted that the conversion rates for MACI Arthro, which refer to the percentage of patients who move from an initial biopsy to receiving a MACI implant using the less invasive arthroscopic technique, are aligning with the traditional methods. This indicates that the ongoing training and activations could drive growth in biopsies and implants through 2026.
Moreover, the analyst also finds that the current valuation of Vericel Corporation (NASDAQ:VCEL) is below its historic average and noted that management expects stable expenses for the rest of the year. Kratky finds the company’s risk/reward situation attractive.
Vericel Corporation (NASDAQ:VCEL) is a biopharmaceutical company that develops advanced therapies for sports medicine and severe burn care.
10. NetScout Systems, Inc. (NASDAQ:NTCT)
Market Capitalization: $1.611 billion
Analyst Upside Potential: 42.79%
Number of Hedge Fund Holders: 22
NetScout Systems, Inc. (NASDAQ:NTCT) is one of the Best Small-Cap Growth Stocks to Buy Right Now. On August 7, NetScout Systems, Inc. (NASDAQ:NTCT) released its fiscal first quarter results for 2026, with both revenue and EPS exceeding Wall Street estimates.
The company delivered $186.75 million in revenue, up around 7% year-over-year and ahead of estimates by $5.25 million. The EPS of $0.34 also exceeded expectations by $0.04. Management noted that this growth was driven by an increased product revenue, which makes up around 39% of the total revenue.
Moreover, NetScout Systems, Inc. (NASDAQ:NTCT) also grew its product backlog significantly to $30.9 million. Management expects full-year revenue between $825 million and $865 million.
NetScout Systems, Inc. (NASDAQ:NTCT) provides solutions for enterprise performance management, carrier service assurance, and cybersecurity.
