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.
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