In this article, we will look at the 15 Best Small Cap Stocks to Buy for 10x Potential.
On May 11, Dan Niles, Niles Investment Management founder, appeared on CNBC’s ‘The Exchange’ to talk about his view on equity markets while conducting a comparison with the prior periods. He was of the view that if we go back to the time of internet buildout, we had the Netscape Navigator come out at the end of 1994, and the Nasdaq was uP 109% over the next three years. The fourth year, though, the Nasdaq was up 40%, and in year 5, which was 1999, it was up 86%.
READ ALSO: 10 Best Healthcare Stocks to Buy for the Long Term AND Why These 7 “Blue Chip” Stocks Were Suddenly On Fire in April.
If we look at ChatGPT, which came out at the end of 2022, three years into it, Nasdaq is up 122%. Therefore, he thinks this is going to be a great year as well. We had two more great years back during the time of the internet buildout, and we at least have one more great year this time, according to him. Niles further believes that you can be in a bubble, and still have it inflate a lot more before you get to the end of that.
With these broader market trends in view, let’s look at the best small cap stocks to buy for 10x potential.
Our Methodology
We sifted through relevant threads on Reddit and posts on social media to compile a list of the best small-cap stocks that people believe have high potential. We then selected the top 15 stocks that were the most popular among elite hedge funds as of Q4 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The stocks are ranked in ascending order of hedge fund sentiment.
Note: All data was recorded on May 11.
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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
15 Best Small Cap Stocks to Buy for 10x Potential
15. Astrana Health, Inc. (NASDAQ:ASTH)
Number of Hedge Fund Holders: 14
Astrana Health, Inc. (NASDAQ:ASTH) is one of the best small cap stocks to buy for 10x potential. On May 8, Baird lifted the price target on Astrana Health, Inc. (NASDAQ:ASTH) to $45 from $40, maintaining an Outperform rating on the shares. The firm updated its model on the stock after it released its fiscal Q1 2026 financial results, stating that the story is strengthening and the MA margin upside is taking shape. The company also received a rating update from Needham the same day, with the firm lifting the price target on Astrana Health, Inc. (NASDAQ:ASTH) to $41 from $30 and reaffirming a Buy rating on the shares.
In its financial results for fiscal Q1 2026 released on May 7, Astrana Health, Inc. (NASDAQ:ASTH) reported total revenue of $965.1 million, reflecting a 56% year over year growth. It also reported adjusted EBITDA of $66.3 million, up 82% year over year, and free cash flow of $64.1 million, up 372% year over year.
Astrana Health, Inc. (NASDAQ:ASTH) is a physician-centric, technology-powered, risk-bearing healthcare management company that operates as an integrated healthcare delivery platform. It provides services including Multi-Specialty Care, Primary Care, Radiology, Immediate Care, and Laboratory.
14. Innovex International, Inc. (NYSE:INVX)
Number of Hedge Fund Holders: 16
Innovex International, Inc. (NYSE:INVX) is one of the best small cap stocks to buy for 10x potential. Innovex International, Inc. (NYSE:INVX) received a rating update from Barclays on May 7. The firm lifted the price target on the stock to $26 from $24 and maintained an Equal Weight rating on the shares, telling investors in a research note that it adjusted ratings and price targets in the energy services group as the sector faces its best setup in 20 years.
It also upgraded its industry view to Positive from Neutral, adding that once the “supply shock” ends, oil prices would be structurally higher, with upstream spending accelerating in 2027 and 2028. Barclays views this as driving an earnings-revision cycle and a potential re-rating of stocks. The firm also believes that the events in the Middle East would result in structurally higher oil prices and an ensuing multi-year upstream spending cycle to drive outperformance of the energy services sector. It upgraded six names while downgrading two.
Innovex International, Inc. (NYSE:INVX) provides solutions for both offshore and onshore applications within the oil and gas industry.
13. Omnicell, Inc. (NASDAQ:OMCL)
Number of Hedge Fund Holders: 19
Omnicell, Inc. (NASDAQ:OMCL) is one of the best small cap stocks to buy for 10x potential. Omnicell, Inc. (NASDAQ:OMCL) received several rating updates following the release of its financial results for fiscal Q1 2026 on April 28. Craig-Hallum lifted the price target on the stock to $55 from $53 on April 29, reiterating a Buy rating on the shares and stating that following the company’s beat and raise quarter, the firm believes there still exists room for shares to run. The firm further stated that it wants investors to focus on how Omnicell, Inc. (NASDAQ:OMCL) is positioning itself for the long term.
The company has raised its available units three times, given the strong demand for demos, and the firm believes this would allow more customers to see/feel the benefits of Titan. Craig-Hallum also believes that continued innovation around OmniSphere and other services should drive enterprise-wide adoption of the company’s solutions in the coming periods. The same day, KeyBanc also raised the price target on Omnicell, Inc. (NASDAQ:OMCL) to $70 from $60 while maintaining an Overweight rating on the shares.
Omnicell, Inc. (NASDAQ:OMCL) provides medication management automation solutions and adherence tools for healthcare systems and pharmacies. The company’s solutions include central pharmacy dispensing, intelligence, platform, interoperability, medication adherence, population health, and point of care automation.
12. Pediatrix Medical Group, Inc. (NYSE:MD)
Number of Hedge Fund Holders: 21
Pediatrix Medical Group, Inc. (NYSE:MD) is one of the best small cap stocks to buy for 10x potential. Mizuho lifted the price target on Pediatrix Medical Group, Inc. (NYSE:MD) to $24 from $21 on May 8, maintaining a Neutral rating on the shares. The rating update came after the company announced financial results for fiscal Q1 2026, reporting earnings of $0.36 per share for the three months ended March 31, 2026. On a non-GAAP basis, adjusted EPS came up to $0.44.
Pediatrix Medical Group, Inc. (NYSE:MD) also reported that net income came up to $30 million and adjusted EBITDA was $58 million. Net revenue was $476 million for the quarter compared to $458.4 million for the prior-year period, with the increase reflecting growth in same-unit revenue of 2.8%, and to a lesser extent, growth in non-same unit activity. Management attributed this to recent acquisitions and was partially offset by practice dispositions. In addition, Pediatrix Medical Group, Inc. (NYSE:MD) reported that same-unit revenue from net reimbursement-related factors rose by 4.4% for fiscal Q1 2026, as compared to the prior-year period.
Pediatrix Medical Group, Inc. (NYSE:MD) provides physician services, including neonatal care, maternal fetal care, and other pediatric subspecialty care.
11. A10 Networks, Inc. (NYSE:ATEN)
Number of Hedge Fund Holders: 21
A10 Networks, Inc. (NYSE:ATEN) is one of the best small cap stocks to buy for 10x potential. BWS Financial lifted the price target on A10 Networks, Inc. (NYSE:ATEN) to $30 from $28 on April 29, reiterating a Buy rating on the shares. The firm told investors in a research note that the company’s fiscal Q1 revenue grew by 13% primarily due to a large order from an existing customer. It attributed the post-earnings selloff to the company not raising its annual guidance and also cited the potential for its sales growth to top the outlook for the target bump.
A10 Networks, Inc. (NYSE:ATEN) also received a rating update from BTIG the same day. The firm lifted the price target on the stock to $30 from $22, reiterating a Buy rating on the shares. The firm released the rating update after the company reported very strong fiscal Q1 results, stating that A10 Networks, Inc. (NYSE:ATEN) is benefiting from an AI infrastructure buildout cycle and increased traffic volumes, which, in turn, is raising the significance of latency, throughput, and concurrency within network architectures. BTIG further told investors in a research note that it believes customers are buying more capacity because AI traffic and attack volumes are rapidly increasing and driving refresh activity.
A10 Networks, Inc. (NYSE:ATEN) provides networking solutions, offering security, hybrid cloud, vertical solutions, service providers, and mobile carriers. The company’s operations are divided into the following geographical segments: Americas, Asia-Pacific and Japan (APJ), and Europe, the Middle East, and Africa (EMEA).
10. Vermilion Energy Inc. (NYSE:VET)
Number of Hedge Fund Holders: 22
Vermilion Energy Inc. (NYSE:VET) is one of the best small cap stocks to buy for 10x potential. Vermilion Energy Inc. (NYSE:VET) announced financial results for fiscal Q1 2026 on May 6, reporting that it generated $232 million ($1.52/basic share) of fund flows from operations and $98 million of free cash flow, fully funding $135 million of exploration and development capital expenditures. It also stated that the cost structure of controllable expenses reduced by 25% in Q1 2026 from Q1 2025, while reducing net debt by $50 million to $1.29 billion at March 31, 2026, and bringing net debt reduction to $770 million over the past 12 months.
Vermilion Energy Inc. (NYSE:VET) returned $27 million to shareholders through dividends and share buybacks, which includes $21 million in dividends and the repurchase and cancellation of 0.4 million shares. It also offered insight into production, reporting that production averaged 125,618 boe/d (72% natural gas), increasing 4% quarter-over-quarter and 22% from fiscal Q1 2025. This comprised 99,746 boe/ from Canadian assets and 25,872 boe/d from International assets.
Vermilion Energy Inc. (NYSE:VET) acquires, explores, develops, and produces oil and natural gas. The company operates through the following geographical segments: Canada, the United States of America, France, the Netherlands, Germany, Ireland, Australia, and Corporate.
9. Sionna Therapeutics, Inc. (NASDAQ:SION)
Number of Hedge Fund Holders: 23
Sionna Therapeutics, Inc. (NASDAQ:SION) is one of the best small cap stocks to buy for 10x potential. Wedbush initiated coverage of Sionna Therapeutics, Inc. (NASDAQ:SION) with an Outperform rating on May 4, setting a price target of $53. The firm told investors in a research note that the company is continually focusing on the development of the next-generation CFTR modulators that stabilise the NBD1 domain. Wedbush believes that Sionna Therapeutics, Inc.’s (NASDAQ:SION) summer data readouts are on track, including the Phase 2a PreciSION for SION-719 and Phase 1 SION-451 data, and it sees “strong rationale” for targeting the NBD1 domain.
Sionna Therapeutics, Inc. (NASDAQ:SION) also received a rating update from JonesResearch on April 28. The firm lifted the price target on the stock to $63 from $52 and maintained a Buy rating on the shares. The rating update came after the company announced the completion of enrollment in the Phase 2a PreciSION study, with data expected this summer. It told investors in a research note that the attainment of additive sweat chloride reduction on SION-719 versus Trikafta alone will establish the potency of NBD1 stabilization, while also validating the predictive power of Sionna’s CFHBE assay and boosting confidence in SION-451 combos.
Sionna Therapeutics, Inc. (NASDAQ:SION) is a clinical-stage biopharmaceutical company involved in the research, development, and commercialization of novel medicines for cystic fibrosis.
8. Intapp, Inc. (NASDAQ:INTA)
Number of Hedge Fund Holders: 25
Intapp, Inc. (NASDAQ:INTA) is one of the best small cap stocks to buy for 10x potential. Intapp, Inc. (NASDAQ:INTA) received several rating updates following the release of its financial results for fiscal Q3 2026 on May 5. Barclays lifted the price target on the stock to $25 from $20 on May 7, reaffirming an Underweight rating on the shares. The same day, Citi also lifted the price target on Intapp, Inc. (NASDAQ:INTA) to $29 from $26 and reaffirmed a Neutral rating on the shares.
In its financial results for fiscal Q3 2026, Intapp, Inc. (NASDAQ:INTA) reported SaaS revenue of $107.9 million, up 27% year-over-year compared to fiscal Q3 2025. Total revenue reached $146.0 million, reflecting a 13% year-over-year growth compared to the prior year period. Cloud ARR also rose 31% year-over-year to $459.3 million in the quarter. Cloud ARR represented 82% of total ARR as of March 31, 2026, compared to 77% as of March 31, 2025. Total ARR grew 23% year-over-year to $559.9 million.
Intapp, Inc. (NASDAQ:INTA) provides information technology services, offering industry-specific, cloud-based software solutions for the professional and financial services industry across the globe.
7. Inhibrx Biosciences, Inc. (NASDAQ:INBX)
Number of Hedge Fund Holders: 26
Inhibrx Biosciences, Inc. (NASDAQ:INBX) is one of the best small cap stocks to buy for 10x potential. Inhibrx Biosciences, Inc. (NASDAQ:INBX) announced on May 11 positive interim results from the randomized, first-line Phase 2 portion of the HexAgon study, with the trial evaluating the safety and efficacy of INBRX-106, a hexavalent OX40 agonist, in combination with pembrolizumab versus pembrolizumab monotherapy in first-line patients with treatment-naïve, PD-L1-positive metastatic or unresectable recurrent Head and Neck Squamous Cell Carcinoma. It reported that the interim analyses showed that INBRX-106 + pembrolizumab attained a 44.0% confirmed Objective Response Rate. In addition, the responding patients in the combination arm exhibited deeper overall tumor reductions, with the majority attaining target lesion shrinkage that exceeded 50%. Three patients also notably achieved a complete radiographic response.
In a separate development, Inhibrx Biosciences, Inc. (NASDAQ:INBX) received a rating update from Stifel on April 22. The firm lifted the price target on the stock to $300 from $150 and maintained a Buy rating on the shares.
Inhibrx Biosciences, Inc. (NASDAQ:INBX) is a clinical-stage biopharmaceutical company with a pipeline of novel biologic therapeutic candidates that were developed through proprietary modular protein engineering platforms. The company’s clinical pipeline of therapeutic candidates includes INBRX-109 and INBRX-106.
6. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Number of Hedge Fund Holders: 32
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is one of the best small cap stocks to buy for 10x potential. Taysha Gene Therapies, Inc. (NASDAQ:TSHA) announced financial results for fiscal Q1 2026 on May 6, reporting that it reaffirmed U.S. Food and Drug Administration (FDA) alignment on the planned pathway to a Biologics License Application (BLA) submission for TSHA-102. This came after a recent initial breakthrough therapy Type B multidisciplinary meeting with the FDA and includes pivotal trial design and endpoints, and BLA submission scenarios, including the potential to submit for approval based on the six-month interim analysis from the REVEAL pivotal trial.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) also reported that it further advanced dosing in the REVEAL pivotal trial, with multiple patients dosed across several clinical trial sites. Furthermore, enrollment in the ASPIRE trial is ongoing across several clinical trial sites, and TSHA-102 is continuing to be generally well-tolerated. Taysha Gene Therapies, Inc. (NASDAQ:TSHA) also initiated a BLA-enabling PPQ campaign for TSHA-102 using a commercial manufacturing process in April 2026.
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) is a clinical-stage biotechnology company that develops and commercializes adeno-associated virus (AAV) based gene therapies to treat monogenic diseases of the central nervous system. The company is also involved in the development of multiple gene therapy platforms, including AAV9 Discovery, Novel Capsid, and AAV Redosing.
While we acknowledge the potential of TSHA 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 TSHA and that has 100x upside potential, check out our report about the cheapest AI stock.
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