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.
Hedge Fund Resource Center