In this article, we will look at the 11 Best Small Cap Stocks with the Highest Upside.
On October 16, Victoria Greene, Chief Investment Officer of G Squared Private Wealth Management, appeared on CNBC and talked about how small cap companies are showing lasting strength.
She stated that small caps show possibility, as a lot of them are rate sensitive, a little bit more levered, and are helped by lower rates, which is why there has been a lot of momentum behind small caps.
READ ALSO: 9 Best Healthcare Stocks with the Highest Upside and 8 Large Cap Stocks With More Than 50% Upside.
While there have been times when the small cap breakout was followed by them eventually lagging behind their large cap peers, Greene stated that this time they appear to have momentum and a sustained breakout, which is why small caps may be sticking around to stay, especially if the market gets another 50 basis points of cuts.
With these trends in view, let’s look at the best small cap stocks with the highest upside.
Our Methodology
We used stock screeners to make a list of small cap stocks with high analyst upside potential. We selected the top 11 that were the most popular among hedge funds, as of Q2 2025, and sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of upside potential.
Note: All data was sourced on October 16.
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).
11 Best Small Cap Stocks with the Highest Upside
11. NextDecade Corp. (NASDAQ:NEXT)
Analyst Upside: 61.81%
Market Cap: $1.60 billion
Number of Hedge Fund Holders: 26
NextDecade Corp. (NASDAQ:NEXT) is one of the best small cap stocks with the highest upside. On October 16, NextDecade Corp. (NASDAQ:NEXT) announced a positive final investment decision (FID) on Train 5 at Rio Grande LNG, stating that it closed financial transactions to fully fund Train 5 and related infrastructure. The company also issued “full notice to proceed to Bechtel under the Company’s lump-sum, turnkey engineering, procurement, and construction (EPC) contract for Train 5 and related infrastructure”.
NextDecade Corp. (NASDAQ:NEXT) reported that Train 5 has expected LNG production capacity of around 6 million tonnes per annum (MTPA), which brings the total anticipated LNG production capacity under construction at Rio Grande LNG to around 30 MTPA.
It added that Train 5 is “commercially supported by 4.5 MTPA of 20-year LNG Sale and Purchase Agreements (SPAs) with JERA, EQT Corporation, and ConocoPhillips”. NextDecade Corp. (NASDAQ:NEXT) expects the guaranteed substantial completion date for Train 5, along with the “date of first commercial delivery (DFCD) under the Train 5 LNG SPAs”, in the first half of 2031.
Management further reported that the expected project costs for Train 5 and related infrastructure are around $6.7 billion, including EPC costs, owner’s costs, financing fees and interest during construction, contingencies, and other costs.
NextDecade Corp. (NASDAQ:NEXT) is a development company with a focus on liquefied natural gas (LNG) export projects and associated pipelines. The company manages and develops floating and land-based liquefied natural gas projects in the Gulf Coast, with a focus on the Rio Grande LNG.
10. DoubleVerify Holdings Inc. (NYSE:DV)
Analyst Upside: 63.34%
Market Cap: $1.78 billion
Number of Hedge Fund Holders: 43
DoubleVerify Holdings Inc. (NYSE:DV) is one of the best small cap stocks with the highest upside. On October 14, DoubleVerify Holdings Inc. (NYSE:DV) received a rating update from Goldman Sachs analyst Eric Sheridan who slashed the firm’s price target on the stock to $13.50 from $18.50 while keeping a Neutral rating on the shares.
The analyst told investors in a research note that the rating update came as part of a broader research note previewing Q3 results in Digital Advertising names. Sheridan stated that the firm is cautious on revenue growth estimates amid a continued uncertain macro environment.
He added that on expenses, Goldman Sachs is reducing its forward margin estimates to coincide with the company’s expectations for continued investment in key growth initiatives.
DoubleVerify Holdings Inc. (NYSE:DV) develops software platforms for digital media measurement, analytics, and data. The company’s software, Pinnacle, is integrated across the entire digital advertising ecosystem, including social media channels, programmatic platforms, and digital publishers.
9. Vericel Corporation (NASDAQ:VCEL)
Analyst Upside: 63.74%
Market Cap: $1.69 billion
Number of Hedge Fund Holders: 14
Vericel Corporation (NASDAQ:VCEL) is one of the best small cap stocks with the highest upside. On October 15, Truist lowered the price target on Vericel Corporation (NASDAQ:VCEL) to $41 from $46 while keeping a Buy rating on the shares. The rating update was released as part of a broader research note that previewed Q3 results in MedTech.
The firm told investors that while it anticipates “healthy” Q3 revenue and earnings across its coverage, it is also bracing for “stock volatility”, with new money feeling absent from the space.
Truist further stated that, like Q2, fund and specialist positioning may result in excessive reactions on anything counter to crowded positioning, which is why it is tilting towards “cleaner” names that have less perceived controversy going into the quarter.
Vericel Corporation (NASDAQ:VCEL) is involved in product development, research, manufacturing, and distribution of patient-specific, expanded cellular therapies that help treat diseases. The company’s product portfolio includes Epicel and MACI.
Epicel covers skin replacement for patients with deep dermal or full-thickness burns, while the MACI portfolio is FDA-approved for the process of tissue engineering for cell growth on scaffolds using healthy cartilage tissue derived from the patient’s own knee.
8. CoreCivic, Inc. (NYSE:CXW)
Analyst Upside: 64.07%
Market Cap: $1.92 billion
Number of Hedge Fund Holders: 31
CoreCivic, Inc. (NYSE:CXW) is one of the best small cap stocks with the highest upside. CoreCivic, Inc. (NYSE:CXW) reported on October 2 that it will announce its fiscal Q3 2025 results on November 5, after the market closes.
Ahead of earnings, Noble Financial analyst Joe Gomes reiterated a bullish stance on CoreCivic, Inc. (NYSE:CXW) on October 13, assigning a price target of $28.
In a separate development, CoreCivic, Inc. (NYSE:CXW) announced on October 1 that it has been awarded a new contract under an Intergovernmental Services Agreement (IGSA) between the US Immigration and Customs Enforcement (ICE) and the Oklahoma Department of Corrections (OKDOC).
The contract allows it to resume operations at the company’s 2,160-bed Diamondback Correctional Facility, which has been idle since 2010. Management reported that the commencement date for the new contract is September 30 for a term of five years, and may be extended through bilateral modification.
CoreCivic, Inc. (NYSE:CXW) further reported that the agreement provides for a “fixed monthly payment plus an incremental per diem payment based on detainee populations”. Management expects the total annual revenue to be around $100 million once the facility is fully operational. The company expects to begin receiving detainees in fiscal Q1 2026, and the full ramp is expected to be complete in fiscal Q2 2026.
CoreCivic, Inc. (NYSE:CXW) is a government solutions company involved in the management and development of prisons and other correctional facilities. The company’s operations are divided into the following segments: Safety, Community, and Properties.
7. Immunocore Holdings plc (NASDAQ:IMCR)
Analyst Upside: 81.74%
Market Cap: $1.73 billion
Number of Hedge Fund Holders: 24
Immunocore Holdings plc (NASDAQ:IMCR) is one of the best small cap stocks with the highest upside. Immunocore Holdings plc (NASDAQ:IMCR) received a rating update from H.C. Wainwright analyst Patrick Trucchio on October 15, who assigned the stock a Buy rating with a price target of $100.
Additionally, Immunocore Holdings plc (NASDAQ:IMCR) was initiated with a Neutral rating by Guggenheim on September 17. The firm told investors in a research note that Immunocore Holdings plc (NASDAQ:IMCR) is a pioneer of the TCR therapeutics domain and has a strong commercial foundation in Kimmtrak, which is the only FDA-approved systemic therapy for metastatic uveal melanoma.
The drug has consistently surpassed Wall Street expectations since its launch in 2022, the firm added. However, it also stated that it sees fewer means of commercial outperformance for the drug in the next leg of growth, contributing to the neutral rating.
Immunocore Holdings plc (NASDAQ:IMCR) is a commercial-stage biotechnology company that develops a novel class of TCR bispecific immunotherapies called ImmTAX (Immune mobilizing monoclonal TCRs Against X disease). The company’s lead product is KIMMTRAK, which is a TCR therapeutic to treat patients with unresectable or metastatic uveal melanoma, in the United Kingdom, the United States, the European Union, Canada, and Australia. Immunocore Holdings plc’s (NASDAQ:IMCR) product pipeline includes IMC-F106C, IMC-F115C, IMC-F119C, IMC-F117C, IMC-F113V, IMC-I109V, IMC-SII8AI, among others.
6. PROCEPT BioRobotics Corporation (NASDAQ:PRCT)
Analyst Upside: 83.65%
Market Cap: $1.88 billion
Number of Hedge Fund Holders: 26
PROCEPT BioRobotics Corporation (NASDAQ:PRCT) is one of the best small cap stocks with the highest upside. On October 15, Truist slashed the price target on PROCEPT BioRobotics Corporation (NASDAQ:PRCT) to $50 from $64 while maintaining a Buy rating on the shares.
The rating update came as part of a broader research note previewing the fiscal Q3 results in the MedTech sector. The firm told investors that it expects to see “healthy” Q3 earnings and revenue across the firms in its coverage, but is also bracing for “stock volatility”.
Truist is more inclined towards “cleaner” names that have less perceived controversy heading into this quarter.
PROCEPT BioRobotics Corporation (NASDAQ:PRCT) is a commercial-stage surgical robotics company that develops transformative solutions for urology. The company manufactures and sells the AquaBeam Robotic System, which is an image-guided, surgical robotic system used in minimally invasive urologic surgery.
5. Rezolve AI PLC (NASDAQ:RZLV)
Analyst Upside: 92.31%
Market Cap: $1.76 billion
Number of Hedge Fund Holders: 8
Rezolve AI PLC (NASDAQ:RZLV) is one of the best small cap stocks with the highest upside. Roth MKM analyst Rohit Kulkarni maintained a Buy rating on Rezolve AI PLC (NASDAQ:RZLV) on October 13 and set a price target of $12.40.
The rating followed Rezolve AI PLC (NASDAQ:RZLV)’s confirmation on October 10 that its recently completed acquisitions of Subsquid and Smartpay were carried out for around “$10 million in total cash consideration and one million Rezolve shares, at closing (assuming no post-closing payments are made)”. Management stated that the confirmation reflects the company’s “commitment to shareholder value” and “disciplined approach to M&A.”
Rezolve AI PLC (NASDAQ:RZLV) also stated that, according to Cantor Fitzgerald’s October 9 report, the two acquisitions “complete the foundational layers to enable Agentic Commerce and digital payments.
Rezolve AI PLC (NASDAQ:RZLV) operates in the mobile commerce industry and develops AI-based mobile commerce and engagement solutions. The company has an innovative engagement platform powered by machine learning and AI. It allows brands, retailers, and manufacturers to develop connections with consumers across desktop and mobile devices.
4. Vera Therapeutics, Inc. (NASDAQ:VERA)
Analyst Upside: 109.68%
Market Cap: $1.98 billion
Number of Hedge Fund Holders: 40
Vera Therapeutics, Inc. (NASDAQ:VERA) is one of the best small cap stocks with the highest upside. BofA initiated coverage of Vera Therapeutics, Inc. (NASDAQ:VERA) with a Buy rating and a $48 price target on October 16.
The firm told investors that it sees potential upside in the company’s shares because of its lead drug, atacicept, a novel biologic investigational therapeutic launching into a multibillion-dollar market.
The firm also stated that its $3 billion nominal peak sales estimation for 2037 shows atacicept’s potential as a favorable treatment option in several autoimmune disorders, pending future clinical data validation.
Vera Therapeutics, Inc. (NASDAQ:VERA) is a clinical-stage biotechnical company that develops and commercializes transformative treatments for immunological diseases.
3. Celldex Therapeutics, Inc. (NASDAQ:CLDX)
Analyst Upside: 112.14%
Market Cap: $1.81 billion
Number of Hedge Fund Holders: 32
Celldex Therapeutics, Inc. (NASDAQ:CLDX) is one of the best small cap stocks with the highest upside. Barclays initiated coverage of Celldex Therapeutics, Inc. (NASDAQ:CLDX) with an Underweight rating on October 13, assigning a $25 price target to the shares. The rating came as part of the firm’s launch of eight companies across rare diseases, inflammation and immunology, and oncology.
The firm told investors in a research note that although there is binary risk to small and mid-cap biotechnology names, investments supported by de-risked mechanisms of action and previous clinical data represent risk-reward skewed to the upside.
Barclays also told investors that the market is favorable towards new mechanisms and modes of action that potentially improve dosing frequency and compliance.
It contended that although Celldex Therapeutics, Inc. (NASDAQ:CLDX) is continually exhibiting encouraging clinical data for its lead molecule barzolvolimab, the shares fail to offer meaningful upside through 2026 because of safety liabilities and a competitive landscape.
Celldex Therapeutics, Inc. (NASDAQ:CLDX) develops, manufactures, and commercializes novel therapeutics for human health care. The company’s pipeline includes Varlilumab, CDX-1140, CDX-301, and CDX-3379.
2. Janux Therapeutics, Inc. (NASDAQ:JANX)
Analyst Upside: 161.67%
Market Cap: $1.70 billion
Number of Hedge Fund Holders: 39
Janux Therapeutics, Inc. (NASDAQ:JANX) is one of the best small cap stocks with the highest upside. Janux Therapeutics, Inc. (NASDAQ:JANX) was initiated with a Buy rating at Truist Financial on October 7.
The firm assigned a $100 price target to the stock and cited its proprietary platforms, TRACTr and TRACIr, stating that it believes them to have the potential to overcome the historical limitations of T-cell engagers in solid tumors by improving safety and efficacy via tumor-activated masking.
Truist also cited Janux Therapeutics, Inc.’s (NASDAQ:JANX) lead asset, JANX007, as holding best-in-class potential in prostate cancer treatment, adding that several readouts anticipated in 2025 make a catalyst-rich year ahead for the company.
The firm anticipates key data updates to be released in H2 2025, believing that they could drive meaningful upside for investors in Janux Therapeutics, Inc. (NASDAQ:JANX).
Janux Therapeutics, Inc. (NASDAQ:JANX) is a preclinical stage biopharmaceutical company that develops therapeutics based on the Tumor Activated T Cell Engager platform technology. The company develops tumor-activated immunotherapies for cancer through two bispecific platforms: Tumor Activated T Cell Engagers (TRACTr) and Tumor Activated Immunomodulators (TRACIr).
1. Edgewise Therapeutics, Inc. (NASDAQ:EWTX)
Analyst Upside: 165.69%
Market Cap: $1.65 billion
Number of Hedge Fund Holders: 38
Edgewise Therapeutics, Inc. (NASDAQ:EWTX) is one of the best small cap stocks with the highest upside. H.C. Wainwright analyst Joseph Pantginis maintained a buy rating and $42 price target on Edgewise Therapeutics, Inc. (NASDAQ:EWTX) on October 13, supporting the optimistic rating with the company’s promising developments in the treatment of Becker muscular dystrophy (BMD).
The analyst stated that Edgewise Therapeutics, Inc.’s (NASDAQ:EWTX) investigational drug, sevasemten, is highlighted as a potential first-in-class therapy to prevent muscle damage in BMD patients. The condition does not have any currently approved treatments, and the drug’s progress, which was highlighted at the 2025 International Annual Congress of the World Muscle Society, reflects its potential to address the unmet needs for BMD.
Therefore, sevasemten’s promising clinical results, especially in improving functional outcomes, support the analyst’s bullish outlook for Edgewise Therapeutics, Inc. (NASDAQ:EWTX).
Edgewise Therapeutics, Inc. (NASDAQ:EWTX) is a clinical-stage biopharmaceutical company that develops, discovers, and commercializes innovative treatments for serious, rare muscle disorders with considerable unmet medical needs and severe cardiac conditions. Its lead product candidate is sevasemten (EDG-5506), an orally administered skeletal myosin inhibitor in late-stage clinical trials in Becker and Duchenne muscular dystrophies.
While we acknowledge the potential of EWTX 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 EWTX and that has 100x upside potential, check out our report about this cheapest AI stock.
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