Wall Street is increasing its bet on small-cap stocks, suggesting that the sector will potentially outperform in 2025. The reasons behind this are simple. While stable rates will be one of the biggest tailwinds for small-cap names, analysts also expect stronger valuations and solid earnings growth from the sector in the year ahead. Most importantly, with expectations tied to the market broadening, investors and analysts are excited to see how the market conditions pan out for small caps.
Ten companies in diverse sectors such as the financials, healthcare, technology, and energy industries, locked in overall positive market gains due to supportive market conditions, macroeconomic environment, and growth potential. That said, let’s take a look at the 10 small-cap stocks that happen to be skyrocketing.
To come up with the 10 names, we only considered stocks with a market capitalization between $1 billion and $10 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the top 10 with the highest 30-day return from December 16, 2024, to January 16, 2025.
A financial analyst looking at a monitor displaying the stocks of the public company.
Why These 10 Small-Cap Stocks Are Skyrocketing
10. Banco BBVA Argentina S.A. (NYSE:BBAR)
30-day Return as of January 16, 2024: 22%
BBAR’s stock jumped by nearly 22% in the past 30 days, going to $23.37 on January 16 from $19.22 on December 16, 2024. The surge in BBAR’s stock price indicates positive investor sentiment, as the company announced key changes to its management and executed key strategic decisions.
On December 18, 2024, Banco BBVA Argentina S.A. (NYSE:BBAR) acquired a stake in FCA Compañía Financiera, an auto-financing firm in Argentina. The deal is worth 14.8 billion (Argentine pesos) and is subject to the approval of authorities.
The transaction not only strengthened BBAR’s position in Argentina but also contributed to the surge in its stock price over the past 30 days. In addition to that, the company has been seeing significant growth in its fundamentals, having grown its net income to 99.2 billion (Argentine pesos) in 3Q24 from 30.5 billion (Argentine pesos) in the third quarter of 2023.
9. The GEO Group, Inc. (NYSE:GEO)
30-day Return as of January 16, 2024: 22%
The GEO Group, Inc. (NYSE:GEO) is a publicly traded company with a mission to invest in private prisons and mental health institutions and facilities in the United States. In the past 30 days, GEO’s stock price returned 22%; an impressive feat.
On January 13, analyst firm Wedbush raised its price target for GEO to $46 from $30, maintaining an outperform rating on the stock. The analyst firm is confident in the growth potential of GEO’s electronic monitoring program. In addition to that, GEO’s position will also be fueled by Trump’s new immigration policy, given that GEO is one of the largest service providers to ICE (U.S. Immigration and Customs Enforcement).
In addition to a supportive macroeconomic environment, The GEO Group, Inc. (NYSE:GEO) announced a $70 million investment in the company’s detection capabilities on December 16, 2024, showcasing its growth potential in 2025 and beyond.
8. New Fortress Energy Inc. (NASDAQ:NFE)
30-day Return as of January 16, 2024: 25%
New Fortress Energy Inc. (NASDAQ:NFE) rose to $14.91 on January 16, a 25% jump from its share price on December 15, 2024. New Fortress Energy Inc. (NASDAQ:NFE) is a provider of clean and affordable liquefied natural gas, with a mission to provide cheaper energy solutions to people across the globe.
On December 23, 2024, Benjamin Nolan, analyst at Stifel, raised his price target for the stock to $17 from $16, maintaining a buy rating on the stock. The analyst is confident that the company will likely sell most of its Jamaica operation for something close to $1 billion. In addition to that, Nolan expects its Puerto Rico business to register stronger growth given that the business is currently accelerating, ramping up its cash flows with little to no investment required.
On the financial front, New Fortress Energy Inc. (NASDAQ:NFE) has grown its revenue by 11.48% year-over-over. NFE is expected to carry forward this momentum as it continues to sign new long-term deals and projects. For instance, on December 11, NFE executed a 10-year charter for Energos Eskimo, which is expected to begin operations in the Summer of 2025.
7. Rumble Inc. (NASDAQ:RUM)
30-day Return as of January 16, 2024: 26%
On January 16, RUM registered a 26% increase in its share price, reaching $10.88 apiece, up from $8.64 on December 16, 2024.
Rumble Inc. (NASDAQ:RUM) is a video-sharing and cloud services provider that recently received a $775 million investment from Tether, one of the largest companies in the digital assets industry. The immediate $250 million in cash will help fuel RUM’s growth initiatives, improving the company’s liquidity situation immensely.
On January 15, analyst firm Maxim initiated a buy rating on the stock with a price target of $20. The company’s stock price primarily jumped after it received an investment from Tether. However, that’s not all, RUM’s strategic partnerships followed by a ban on TikTok in the United States, may also fuel demand for the video-sharing platform.
6. VEON Ltd. (NASDAQ:VEON)
30-day Return as of January 16, 2024: 29%
VEON reached $46.04 on January 16, registering a 29% increase from its share price of $35.71 on December 16, 2024. VEON Ltd. (NASDAQ:VEON) is a global digital operator that provides connectivity and digital services to 160 million customers in 6 markets across the globe. These six markets make up 7% of the world’s population.
Over the past month, the company has made some massive changes to its business model. To elaborate, in the past 30 days, the company has secured a partnership with Starlink for satellite connectivity in Ukraine, relocated its headquarters to Dubai, and decided to list Kyivstar, its telecom unit in Ukraine, on NASDAQ.
The company is committed to providing 4G connectivity to everyone and with its decision to list Kyivstar, which has a customer base of 24 million customers, other investors in the United States will be able to directly participate in the recovery of the Ukrainian economy.
5. Oklo Inc. (NYSE:OKLO)
30-day Return as of January 16, 2024: 31%
Oklo Inc. (NYSE:OKLO) is an advanced nuclear technology company based in California. The company was founded in 2013 and designs compact fast reactors with a mission to provide clean, safe, and affordable energy.
OKLO grew by 31% over the past 30 days, with a share price of $24.17, up from $18.48 on December 16, 2024. Under updated rules in the United States, nuclear power is now eligible for hydrogen tax credits, one of the primary reasons for the surge in OKLO’s share price.
The Street is also bullish on OKLO, and their median price target of $27 points to an upside of 12% from current levels. In addition to that, on January 8, Citi raised its firm’s price target from $10 to $31. The analyst firm believes that energy companies are well-positioned to achieve more solid financial gains in 2025 than they were last year.
4. BlackBerry Limited (NYSE:BB)
30-day Return as of January 16, 2024: 34%
BlackBerry Limited (NYSE:BB) rose to $4.14 on January 16, marking a 34% surge in share price from December 16, 2024.
On January 10, analyst firm RBC Capital raised its price target for BlackBerry Limited (NYSE:BB) from $3.25 to $4, while maintaining a sector perform rating on the stock. Cylance, BB’s cybersecurity firm, which has been underperforming for quite some time, has been acquired by Arctic Wolf. The sale of Cylance has led the stock to surge and this is why RBC Capital increased its price target.
RBC Capital believes that the sale of Cylance will bolster the investor’s sentiment in BlackBerry’s (NYSE:BB) shares. In addition to that, Blackberry QNX, an operating system for the embedded systems market, has been performing well and the sale of Cylance will divert attention to BB’s high-performing business.
Since its inception, QNX has deployed its crucial systems in more than 255 million vehicles. The business also serves some of the fastest-growing industries such as the automotive, medical devices, robotics, and commercial vehicles sectors.
3. Inari Medical, Inc. (NASDAQ:NARI)
30-day Return as of January 16, 2024: 40%
Inari Medical, Inc. (NASDAQ:NARI) registered impressive gains following a buyout deal from Stryker. The stock gained 40% in the past 30 days, going from $56.75 on December 16, 2024, to $79.4 on January 16.
The medical device company has treated more than 100,000 patients so far and offers a diverse range of products in mechanical thrombectomy. In addition to that, the mechanical thrombectomy industry is also expected to register solid growth over the next few years, fueling NARI’s position in the market.
The company’s premium valuation of $4.9 billion, following the buyout, has immensely contributed to its surge. However, the aftermath of the acquisition is yet to play out and investors are keen to see where the stock goes following the decision.
2. Intuitive Machines, Inc. (NASDAQ:LUNR)
30-day Return as of January 16, 2024: 48%
Intuitive Machines, Inc. (NASDAQ:LUNR) returned slightly over 48% in the past 30 days, going from $12.93 to $19.81 on January 16, 2024.
LUNR is a space exploration company based in Houston, Texas. Founded in 2013, Intuitive Machines, Inc. (NASDAQ:LUNR) is now among the rapidly growing companies in the industry. Its focus is on disrupting lunar access economics.
On January 7, the company completed its final lunar lander installation, thus marking Nokia’s cellular network as ready. The two companies have come together to deploy the first cellular network on the moon, an incredible update contributing to its popularity in the market.
Previously, in December, LUNR also secured additional contracts from NASA’s Near Space Network for direct-to-Earth services. The update enhanced LUNR’s position as a prominent partner in NASA’s projects to the moon, marketing LUNR as an emerging leader in space exploration.
1. H&E Equipment Services, Inc. (NASDAQ:HEES)
30-day Return as of January 16, 2024: 62%
HEES reached $89 on January 16, registering a 62% increase from its share price of $55.03 apiece on December 16, 2024. H&E Equipment Services, Inc. (NASDAQ:HEES) is one of the largest equipment services in the country and is known for its premium quality products.
The stock has surged following its deal to be acquired by United Rentals for $4.8 billion and is currently the talk of the town, as its premium valuation attracts investors.
HEES was founded in 1961 and serves a plethora of customers in the commercial and industrial markets through its 160 locations across the United States. The company has increased its revenue by nearly 6% year-over-year.
While we acknowledge the potential of HEES to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HEES but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
Hedge Fund Resource Center