With the stock market charging higher in 2025, a group of small-cap stocks has presented unique and focused opportunities for investors. These companies have more than doubled in the past few months, but even after their strong performance, they continue to fly under the radar, with market values under $2 billion.
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The best small-cap stocks to buy now are early-stage businesses with room to expand in their niche. Sure, mega-caps like Nvidia Corp. (ticker: NVDA) represent obvious plays on the promise of AI, but they also are crowded trades — and based on current valuations, they may not have much room for error.
In contrast, these small-cap stocks are tapping into AI, biotech innovation and other megatrends without as much buzz. And as a result, they’ve seen their share prices rise quickly and dramatically, with hopes for continued success in 2026 and beyond.
| Stock | Sector | Market capitalization | Year-to-date return as of Nov. 11 |
| Anywhere Real Estate Inc. (HOUS) | Real estate | $1.4 billion | 282.4% |
| AXT Inc. (AXTI) | Technology | $511.5 million | 386.6% |
| Babcock & Wilcox Enterprises Inc. (BW) | Industrials | $836.7 million | 320.7% |
| Bakkt Holdings Inc. (BKKT) | Technology | $359.8 million | -13.3% |
| eGain Corp. (EGAN) | Technology | $418.8 million | 142.3% |
| Hive Digital Technologies Ltd. (HIVE) | Financial services | $1 billion | 62.1% |
| Hycroft Mining Holding Corp. (HYMC) | Materials | $717.4 million | 266.5% |
| Lightwave Logic Inc. (LWLG) | Materials | $674.4 million | 156.2% |
| PepGen Inc. (PEPG) | Health care | $337.8 million | 22.7% |
Anywhere Real Estate Inc. (HOUS)
Market value: $1.4 billion Sector: Real estate
As proof that the best small-cap stocks come in many different packages, our first entry is a real estate firm. And while you may not have heard of Anywhere Real Estate — which helps independent sales agents and brokerages with everything from processing titles to executing sales — you can’t argue with its performance. Shares are up about 280% year to date in 2025, making it one of the best-performing stocks out there.
HOUS has a unique model that franchises a portfolio of well-known brokerage brands, including Century 21, Coldwell Banker and ERA Real Estate. It then provides back-end services to further capitalize on the activity of local offices. It’s a focused but successful business model that’s driving real results. And with chronically low real estate inventories in recent years, many communities rely on their local real estate brokerages more than ever to help them navigate a tricky housing market.
AXT Inc. (AXTI)
Market value: $511.5 million Sector: Technology
While some investors are watching trillion-dollar tech stocks to see how these mega-caps will capitalize on AI, small-cap stocks like AXT present unique and targeted opportunities to play the artificial intelligence revolution. A specialty materials producer known for high-performance semiconductor substrates, AXT plays a small but important role in chipmaking and is predicting a 30% pop in its sales in fiscal year 2026 as a result.
And while large tech companies are closely followed by everyone, small-cap stocks like AXT often fly under the radar and don’t risk the same nosebleed valuations. Consider that this firm is valued at only about 24 times forward earnings — despite more than 380% gains in 2025 — while tech darlings like Nvidia are closer to 30 times forward earnings. There’s always some volatility risk in a small stock like this, of course, but there could also be hidden opportunity.
Babcock & Wilcox Enterprises Inc. (BW)
Market value: $836.7 million Sector: Industrials
Ohio-based industrial firm Babcock & Wilcox is an energy and emissions control specialist that serves electric utilities, municipal power services and other related customers across the U.S. Shares have been lifted in 2025 thanks to growing investor interest in AI infrastructure plays, and BW stock has really taken off in the past several weeks after news of a $1.5 billion contract with Applied Digital to deliver and install 1 gigawatt of efficient energy for an AI data center project.
That brings its global AI pipeline to more than $10 billion. Considering the small size of BW, this megatrend is likely to transform the company in the years ahead.
Bakkt Holdings Inc. (BKKT)
Market value: $359.8 million Sector: Technology
Born out of a spinoff from Intercontinental Exchange Inc. (ICE) — the financial infrastructure giant that owns the New York Stock Exchange, among other exchanges — Bakkt is a cryptocurrency and digital assets platform focused on order matching rather than mining new coins. As the regulatory environment becomes more favorable for crypto firms, this company’s roots in traditional finance give it an even greater leg up for the future.
The company is not yet profitable, but in its most recent earnings report it posted revenue growth of almost 30% year over year. What’s more, Bakkt is optimistic about 2026, with forecasts of positive earnings. With international expansion plans and close relationships with institutions thanks to its pedigree, this crypto stock is not a direct play on Bitcoin but rather an investment in the growth of the overall digital asset ecosystem in the years ahead.
eGain Corp. (EGAN)
Market value: $418.8 million Sector: Technology
Software specialist eGain is one of the rare small-cap tech stocks that focuses on AI and also has substantive profits. Founded in 1997, the company has a long history of operating success and just reported a 11% year-over-year revenue increase in its fiscal fourth quarter.
Its eGain AI agent, which helps businesses deploy enterprise-grade agentic solutions, recently caught the attention of megabank JPMorgan Chase & Co. (JPM) and is now looking forward to forecasts of up to 4% revenue growth in 2026. With a strong foundation and software that continues to resonate with customers seeking AI solutions, eGain is a small-cap stock to watch.
[Read: 6 Top Small-Cap AI Stocks and Emerging AI Companies]
Hive Digital Technologies Ltd. (HIVE)
Market value: $1 billion Sector: Financial services
Hive Digital Technologies operates as a cryptocurrency mining company in Canada, Sweden and Paraguay. It recently rebranded from Hive Blockchain to highlight that it does more than just digital assets, including cloud computing technologies. Like many stocks in the space, it is transitioning its high-powered data centers to capitalize on AI as well as Bitcoin and Ether.
That’s not the first transition for Hive, either. Formerly known as Leeta Gold Corp., the company actually mined physical metals prior to 2017. With shares up more than 150% in the past six months, investors seem to appreciate the ability of this fast-moving small-cap stock to pivot and meet new opportunities.
Hycroft Mining Holding Corp. (HYMC)
Market value: $717.4 million Sector: Materials
Perhaps the most straightforward small-cap stock on this list, Hycroft is a precious metals miner that explores for silver and gold in the U.S. The company holds interests in about 1,800 acres in its core operations, with claims encompassing a total of 63,000 acres across the state of Nevada.
As inflation remains a global concern for many investors, hard assets and raw materials are generally in favor. And with gold in particular on quite a run this year, it’s small wonder that a small-cap stock can see big performance as a result. The tailwind created by surging gold prices is particularly pronounced in a small operation like Hycroft, where only a modest amount of extra investment can bring a significant percentage increase in production — and, of course, profitability.
Lightwave Logic Inc. (LWLG)
Market value: $674.4 million Sector: Materials
With all the cool small-cap tech stocks and development-phase drugmakers, you might think a chemicals firm is a boring option. But thanks to its unique niche developing proprietary products for fiber-optic manufacturers, LWLG is well positioned to benefit from our data-hungry future.
LWLG’s next-gen “electro-optic” polymers increase the efficiency of internet infrastructure, enabling more data to be transmitted at higher speeds. These products support applications from AI to Internet of Things connectivity to cryptocurrency mining. The company has been coy in recent releases but noted that a major Fortune 500 corporation has advanced a multi-year partnership for design and manufacturing. While details are sparse, shares have rallied a robust 156% year to date on high hopes for the future of LWLG stock.
PepGen Inc. (PEPG)
Market value: $337.8 million Sector: Health care
While all small-cap stocks carry risk, PepGen is one of the most aggressive options on this list. A clinical-stage biotechnology company, PEPG is working on advancing the next generation of oligonucleotide therapeutics for rare muscle diseases, including muscular dystrophy. The company is not yet profitable, as it plows all its cash into research and clinical trials, but the stock has surged about 300% since September thanks to investor optimism.
That interest in PepGen comes from positive initial results for an early-stage investigational drug, but more importantly from a $12 billion deal by Big Pharma giant Novartis AG (NVS) to acquire a peer oligonucleotide biotech firm. That has led many investors to think PepGen could be next, and shares could continue their run if the interest from deep-pocketed mega-caps materializes. However, investors should keep in mind that poor drug-trial data or a lack of a buyout premium could send this biotech stock moving the other way if sentiment sours.
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9 Best Small-Cap Stocks to Buy Now originally appeared on usnews.com
Update 11/12/25: This story was published at an earlier date and has been updated with new information.
