Let's talk about small cap stocks. It's common knowledge that tilting your stock portfolio toward smaller-capitalization companies will generally outperform the S&P 500 over a long enough period of time. Companies that have a market value between $300 million and $2 billion tend to outperform their large cap counterparts simply because they have a lot more room to grow and haven't saturated their markets yet.
While small cap stocks provide some of the best growth opportunities in public markets, they are also much more volatile than their large cap counterparts. Many large cap companies that are name brands among retail investors (Apple, Tesla, etc.) move in unison with the total direction of the market.
It's a different situation with small cap stocks. There are clear winners and losers over the course of the year. Price performance is much more dependent on a small cap's stock performance (earnings per share) and how much interest there is in the company among retail investors. If a small cap stock has strong earnings and gains a following on sites like Seeking Alpha and MarketBeat, they can see their stock price double or triple over the course of a year. That typically doesn't happen with their large cap counterparts.
How do you find the winners though? Sure, you can buy a small cap index ETF and get average returns and you'll do fine over the course of time. But, what if there was a way to identify the best small caps to buy now without having a crystal ball? It's impossible to say with certainty what the best performing small cap stocks will be next year, but we polled the most-accurate and best-performing research analysts on Wall Street to see what they have to say.
Wall Street analysts publish more than 48,000 research notes on small cap companies each year. We've compiled a list of the 10 stocks that they are consistently issuing "buy", "strong buy", and "conviction buy" ratings on.
#1 - Green Thumb Industries (OTCMKTS:GTBIF)
- Consensus Rating
- Strong Buy
- Rating Score
- 3.6
- Ratings Breakdown
- 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $16.50 (108.1% Upside)
About Green Thumb Industries
Green Thumb Industries Inc manufactures, distributes, markets, and sells of cannabis products for medical and adult-use in the United States. It operates through two segments, Retail and Consumer Packaged Goods. The company offers cannabis flower; processed and packaged products, including pre-rolls, concentrates, vapes, capsules, tinctures, edibles, topicals, and other cannabis-related products under the &Shine, Beboe, Dogwalkers, Doctor Solomon's, Good Green, incredibles, and RHYTHM brands.
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Recent Analyst Ratings
- Consensus Rating
- Strong Buy
- Rating Score
- 3.6
- Ratings Breakdown
- 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $16.00 (9.5% Upside)
About Serve Robotics
Serve Robotics Inc designs, develops, and operates low-emission robots that serve people in public spaces with food delivery in the United States. It builds self-driving delivery robots. The company was formerly known as Patricia Acquisition Corp. and changed its name to Serve Robotics Inc in July 2023.
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Recent Analyst Ratings
#3 - Quince Therapeutics (NASDAQ:QNCX)
- Consensus Rating
- Buy
- Rating Score
- 3.4
- Ratings Breakdown
- 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $8.67 (386.9% Upside)
About Quince Therapeutics
Quince Therapeutics, Inc, a biopharmaceutical company, focuses on acquiring, developing, and commercializing therapeutics for patients with debilitating and rare diseases. The company's lead asset candidature comprises EryDex for the treatment of rare pediatric neurodegenerative disease, including A-T, an inherited autosomal recessive neurodegenerative and immunodeficiency disorder caused by mutations in ATM gene.
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Recent Analyst Ratings
- Consensus Rating
- Buy
- Rating Score
- 3.3
- Ratings Breakdown
- 6 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $5.50 (85.8% Upside)
About Rezolve AI
Rezolve Limited develops and offers a retail and engagement technology solution that acts as an instant transaction tool for mobile devices. Its tool allows users to discover and purchase goods and services, provide personal details in response to advertising, pay a bill, make a charitable donation, and more through a mobile device.
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Recent Analyst Ratings
#5 - OnKure Therapeutics (NASDAQ:OKUR)
- Consensus Rating
- Buy
- Rating Score
- 3.4
- Ratings Breakdown
- 5 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $36.00 (329.6% Upside)
About OnKure Therapeutics
Reneo Pharmaceuticals Incis a clinical stage pharmaceutical company. It is focused on the development and commercialization of therapies for patients with rare, genetic, mitochondrial diseases. Reneo Pharmaceuticals Incis based in SAN DIEGO.
Recent Analyst Ratings
- Consensus Rating
- Buy
- Rating Score
- 3.0
- Ratings Breakdown
- 3 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $24.33 (21.8% Upside)
About Travelzoo
Travelzoo, together with its subsidiaries, operates as an Internet media company that provides travel, entertainment, and local experiences worldwide. It operates in four segments: Travelzoo North America, Travelzoo Europe, Jack's Flight Club, and New Initiatives. The company offers Travelzoo website, Travelzoo Top 20 email newsletters, Standalone email newsletters, Travelzoo Network, Travelzoo mobile applications, Jack's Flight Club website, Jack's Flight Club mobile applications, and Jack's Flight Club newsletters.
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Recent Analyst Ratings
#7 - Ceragon Networks (NASDAQ:CRNT)
- Consensus Rating
- Buy
- Rating Score
- 3.3
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $6.83 (55.7% Upside)
About Ceragon Networks
Ceragon Networks Ltd., together with its subsidiaries, provides wireless transport solutions for cellular operators and other wireless service providers in North America, Europe, Africa, the Asia Pacific, the Middle East, India, and Latin America. The company's solutions use microwave and millimeter wave radio technology to transfer telecommunication traffic between base stations, small/distributed cells, and the service provider's network.
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Recent Analyst Ratings
- Consensus Rating
- Buy
- Rating Score
- 3.0
- Ratings Breakdown
- 3 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $31.50 (0.2% Upside)
About HealthStream
HealthStream, Inc provides Software-as-a-Service (SaaS) based applications for healthcare organizations in the United States. The company's solutions help healthcare organizations in meeting their ongoing clinical development, talent management, training, education, assessment, competency management, safety and compliance, and scheduling, as well as provider credentialing, privileging, and enrollment needs.
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Recent Analyst Ratings
- Consensus Rating
- Buy
- Rating Score
- 3.0
- Ratings Breakdown
- 4 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $37.67 (15.0% Upside)
About CPI Card Group
CPI Card Group Inc, together with its subsidiaries, engages in the design, production, data personalization, packaging, and fulfillment of financial payment cards. It operates through Debit and Credit, and Prepaid Debit segments. The Debit and Credit segment produces financial payment cards and provides integrated card services to card-issuing financial institutions.
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Recent Analyst Ratings
#10 - Tactile Systems Technology (NASDAQ:TCMD)
- Consensus Rating
- Moderate Buy
- Rating Score
- 2.7
- Ratings Breakdown
- 1 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $23.00 (35.3% Upside)
About Tactile Systems Technology
Tactile Systems Technology, Inc, a medical technology company, develops and provides medical devices to treat underserved chronic diseases in the United States. It offers Flexitouch Plus system, a pneumatic compression device for the treatment of lymphedema in the home setting; and Entre Plus System, a portable pneumatic compression device for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers.
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Recent Analyst Ratings
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