The stock market has kept investors guessing this year, between deep declines in spring followed by a significant bounce-back rally across the summer. And while it may be tempting to think that the worst of the volatility is over, a number of important questions remain concerning the impact of tariffs, interest rates, and what Congress and President Donald Trump will do next.
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In such an uncertain environment, the best small-cap stocks to buy are the ones that present unique opportunities. By focusing on specialized applications or customers, these undersized but agile firms often can carve out a profitable niche that is insulated from big-picture pressures.
The following list of the best small-cap stocks to buy in 2025 takes this to heart by picking nine different companies in nine different sectors. They don’t share much, then, other than a market capitalization of around $2 billion or less and a laser focus on their field of choice. Well, that plus some significant outperformance of their shares since Jan. 1.
| Stock | Sector | Market Cap | YTD Performance as of Aug. 4 Close |
| Aeva Technologies Inc. (ticker: AEVA) | Technology | $776 million | 197.3% |
| Americas Gold and Silver Corp. (USAS) | Materials | $652 million | 170.8% |
| Astronics Corp. (ATRO) | Industrials | $1.2 billion | 119.9% |
| Energy Fuels Inc. (UUUU) | Energy | $2.2 billion | 93.1% |
| fuboTV Inc. (FUBO) | Communications services | $1.3 billion | 209.3% |
| Industrial Logistics Properties Trust (ILPT) | Industrials | $396 million | 63.7% |
| Lincoln Educational Services Corp. (LINC) | Consumer staples | $694 million | 39.2% |
| Oncology Institute Inc. (TOI) | Health care | $354 million | 1,147.6% |
| ThredUp Inc. (TDUP) | Consumer discretionary | $1.2 billion | 635.3% |
Aeva Technologies Inc. (AEVA)
Sector: Technology Market value: $776 million YTD performance: +197.3%
Aeva is a sensor specialist committed to transformational technologies that range from automated driving to industrial robotics. Its solutions include cutting-edge LIDAR components — think radar but with lasers instead of sound waves — to support next-gen applications. The company is not yet profitable, so there’s a hefty amount of risk in this startup. But with plans for the company to triple its revenue by the end of fiscal year 2026, you’d be hard-pressed to find a faster-growing tech stock with more buzz behind it. Shares are up more than 50% year to date in 2025 and could just be getting started if the company can keep putting up impressive growth numbers across the rest of the year.
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Americas Gold and Silver Corp. (USAS)
Sector: Materials Market value: $652 million YTD performance: +170.8%
As inflation remains a global concern for many investors, hard assets and raw materials are in favor. And while one of the smaller small-cap stocks on this list, USAS is tailor-made for the current environment as its operations focus on precious metals. Headquartered in Toronto, the company’s modest size allows it to quickly ramp up production of its reserves in periods of favorable pricing without adding significantly to fixed mining costs — something called “operational leverage” in the materials sector, and a trend that has lifted many miners lately. USAS stock has outperformed many of its peers as well as the broader market, however, making it a top small-cap stock to watch.
Astronics Corp. (ATRO)
Sector: Industrials Market value: $1.2 billion YTD performance: +119.9%
Astronics is an aerospace company with innovative potential. However, it’s also closely tied to the U.S. Department of Defense, so it’s not as open to cyclical ups and downs as other industrial stocks. The company provides critical instruments and components to manufacturers of aircraft, as well as training and test systems for pilots. Thanks to a unique niche and deep customer relationships, the company is predicting that earnings per share may leap 40% or more this fiscal year. Shares of ATRO have marched steadily higher this year thanks to investor optimism even as the rest of Wall Street has been deeply in the red, showing this aerospace upstart is among the best small-cap stocks to buy now.
Energy Fuels Inc. (UUUU)
Sector: Energy Market value: $2.2 billion YTD performance: +93.1%
Picking a small-cap oil explorer is almost always a risky proposition that is dependent on the ups and downs of crude. However, Energy Fuels stands out as one of the best small-cap stocks in the sector because it isn’t involved with oil at all. Instead, this Colorado-based firm is in the business of uranium — an increasingly in-demand energy source thanks to a desire to look beyond fossil fuels for low-carbon power. In 2023, utility giant Southern Co. (SO) flipped the switch on the nation’s first new nuclear power plant built in decades to provide a clear signal that negative perceptions and regulatory hurdles for the energy source have been waning. UUUU is ramping up to meet this future demand, with a staggering 250% revenue growth rate expected in fiscal year 2026.
fuboTV Inc. (FUBO)
Sector: Communications services Market value: $1.3 billion YTD performance: +209.3%
Small-cap stock fuboTV operates a live TV streaming platform that is focused on sports and news content — including local broadcast affiliates and college sports platforms like the Big 10 Network in addition to legacy cable channels like Fox News and CNBC. With unlimited cloud-based DVR functionality and unlimited screens both at home and on the go, this platform is quickly catching on in an age where consumers are getting a bit tired of increased login limitations and price hikes from legacy streamers like Netflix Inc. (NFLX). The stock is not yet profitable, as it has so far invested aggressively in future growth, but some analysts expect that trend to change in the next few quarters — and the stock has more than doubled in 2025 as a result. Recent share momentum coupled with the potential of a full-scale buyout in the years ahead makes FUBO a streaming stock to watch.
Industrial Logistics Properties Trust (ILPT)
Sector: Industrials Market value: $396 million YTD performance: +63.7%
Structured as a real estate investment trust, Industrial Logistics Properties is a warehouse operator focused on owning and leasing more than 400 high-quality industrial sites across 39 states to span almost 60 million square feet of total space. Particularly in the age of e-commerce and “just in time” supply chains, companies of all shapes and sizes have a critical need for reliable transportation and shipping hubs. Perhaps unsurprisingly, FedEx Corp. (FDX) and Amazon.com Inc. (AMZN) are among its largest clients. While there are certainly bigger operators in the space, long-term contracts and an attractive product portfolio have served ILPT well. As proof, the company yields more than twice the typical S&P 500 component in addition to putting up significant share appreciation in 2025.
Lincoln Educational Services Corp. (LINC)
Sector: Consumer staples Market value: $694 million YTD performance: +39.2%
Though not the typical business you’d think of when you think of consumer staples, educational services nevertheless fall into this sector thanks to the fact that these kinds of expenses are necessary for all and rather durable even in times of broader consumer distress. Lincoln stands apart from other for-profit education stocks, in part because of its focus on vocational training. From automotive repair to HVAC installation training, the practical fields served by LINC are not only necessary but increasingly attractive in the age of artificial intelligence disruption to fields in the liberal arts. Throw in a more favorable regulatory environment under a Republican Congress and it’s easy to see why this stock is projecting roughly double-digit revenue growth both this fiscal year and into fiscal year 2026.
Oncology Institute Inc. (TOI)
Sector: Health care Market value: $354 million YTD performance: +1,147.6%
Many investors chase small-cap biotech stocks on the hopes of a huge one-time gain after a favorable clinical trial for a new drug. But while this can be profitable, it can also be quite risky. The Oncology Institute is a more stable small-cap alternative in the sector, as it provides support for these kinds of clinical trials — without the “all or nothing” hopes for success of a single drug. It also offers patient services and prescription drug dispensaries that are targeted specifically to cancer patients. The company is still small and specialized, but it posted strong Q1 numbers and reaffirmed its expectations of reaching consistent profitability later this year. Investors seem to be quite optimistic that will happen, given that shares have surged more than 10x since New Year’s Day.
ThredUp Inc. (TDUP)
Sector: Consumer discretionary Market value: $1.2 billion YTD performance: +635.3%
One of the hottest stocks of 2025, small-cap leader ThredUp has seen steady and significant gains in share price over the past 12 months. The company operates a marketplace for secondhand clothes, capitalizing on the persistent demand for high-end fashion coupled with a more frugal approach from consumers via an innovative “virtual thrift shop.” ThredUp is the go-to destination for more than 50,000 brands from Gap to Gucci — and for the bargain-conscious, sometimes you can strike deals for 90% off the former retail price. Though still down from its short-lived highs just after its much-hyped 2021 IPO, the stock closed 2024 with record revenues, and gross margins continue to charge steadily higher in 2025. There’s definitely risk here, as the company still isn’t yet booking an operational profit and there’s not exactly a wide moat around a business reselling clothes. But if you want an up-and-coming small-cap stock for 2025, TDUP could be it.
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9 Best Small-Cap Stocks to Buy in 2025 originally appeared on usnews.com
Update 08/05/25: This story was published at an earlier date and has been updated with new information.
