5 Small Cap Stocks with the Highest Upside Potential

In this article, we will list the 5 Small Cap Stocks with the Highest Upside Potential. Please visit 7 Small Cap Stocks with the Highest Upside Potential to see the extended list and the methodology behind it.

5. Phoenix Education Partners Inc. (NYSE:PXED)

Average Upside Potential: 69.05%

Phoenix Education Partners Inc. (NYSE:PXED) is one of the small cap stocks with the highest upside potential. On April 7, Phoenix Education Partners reported financial results for FQ2 2026, recording net revenue of $222.5 million and a net income of $10.8 million, or $0.28 diluted EPS. While net revenue remained relatively stable compared to the previous year, the company saw a rise in Average Total Degreed Enrollment to 82,600 students. The decrease in net income from $16.1 million in the prior year’s quarter was attributed to share-based compensation costs linked to the company’s IPO.

The CEO highlighted the institution’s success in student satisfaction, noting that the University of Phoenix exceeded national benchmarks across 26 attributes in the Priorities Survey for Online Learners. The company also issued over one million digital badges to students and alumni to verify career-relevant skills. Strategically, the Board of Directors approved a new $50 million share repurchase program and declared a common stock cash dividend of $0.21 per share, payable on May 22.

As of February 28, the company maintained a strong liquidity position with $252.1 million in cash, equivalents, and marketable securities, supported by $80 million in cash generated from operating activities during H1. For FY26, Phoenix Education Partners Inc. (NYSE:PXED) projects net revenue to fall between $1,025 and $1,035 million, with Adjusted EBITDA to range from $244 to $249 million.

Phoenix Education Partners Inc. (NYSE:PXED) is a pioneer in online higher education for working adults. The company provides talent solutions for employers, using AI-powered tools and talent-sourcing platforms to align student skill profiles with internal development pathways and job opportunities.