Top Performing Small-Cap Shares to Invest In Immediately

Top Performing Small-Cap Shares to Invest In Immediately

Top Small-Cap Stocks to Buy According to Wall Street Analysts

As we approach the second half of 2025, a shift in focus towards small-cap stocks is becoming increasingly apparent. Analysts are recommending a diverse mix of biotechnology, healthcare, technology, and clean energy companies, many of which carry strong buy ratings.

Among the top small-cap stocks with strong analyst recommendations are Kymera Therapeutics (KYMR), Denali Therapeutics (DNLI), Genius Sports (GENI), Axsome Therapeutics (AXSM), Xenon Pharmaceuticals (XENE), Avidity Biosciences (RNA), Wave Life Sciences (WVE), Arcellx (ACLX), Privia Health Group (PRVA), BridgeBio Pharma (BBIO), Guardant Health (GH), and Essential Properties Realty Trust (EPRT) in the health care sector.

In the biotechnology space, stocks like Kymera Therapeutics, Denali Therapeutics, Xenon Pharmaceuticals, Avidity Biosciences, and Arcellx have all received a strong buy rating. These companies are expected to grow in the near term based on analyst research and earnings trends.

The health care services sector is also well-represented, with Privia Health Group, Guardant Health, and Essential Properties Realty Trust all earning strong buy ratings.

Outside of the health care sector, SolarEdge Technologies, a clean energy company specializing in solar energy management, has been highlighted as a must-buy small-cap with strong upside potential. UBS analysts raised its price target to $30 amid a 104% year-to-date return.

For growth investors, Root Inc., a company in the insurance tech space, has shown strong earnings and analyst optimism. With share prices up over 70% year-to-date and further growth expected, it could be an attractive option.

The underperformance of the Russell 2000 Index might indicate undiscovered value or underappreciated growth potential in small caps. As the Federal Reserve is expected to enact several incremental cuts to the federal funds rate before year-end, the second half of 2025 might be more favorable for stockpickers looking for the best small-cap stocks.

Jeff Buchbinder, chief equity strategist for LPL Financial, suggests that small-cap equities become increasingly attractive on a relative basis. Sectors poised to benefit from domestic policy tailwinds could have growth potential in small caps. The list also includes a gaming stock (Genius Sports) and a real estate investment trust (Essential Properties Realty Trust).

In summary, the second half of 2025 could be a promising time for investors seeking to capitalize on small-cap stocks. With a diverse range of companies across various sectors carrying strong buy ratings, there are numerous opportunities for growth. However, as with any investment, it's essential to conduct thorough research and consider your individual investment goals and risk tolerance.

*Note: This article is for informational purposes only and should not be considered financial advice. Always consult with a financial advisor before making investment decisions.*

Table: Top Small-Cap Stocks to Buy Now

| Ticker | Analysts' Consensus Recommendation Score | Subsector | Analysts' Consensus Recommendation | |--------|------------------------------------------|-----------|-------------------------------------| | WAY | 1.0 | Health care software | Strong Buy | | KYMR | 2.0 | Biotechnology | Strong Buy | | DNLI | 2.0 | Biotechnology | Strong Buy | | GENI | 2.0 | Casinos and gaming | Strong Buy | | AXSM | 2.0 | Pharmaceuticals | Strong Buy | | XENE | 2.0 | Biotechnology | Strong Buy | | RNA | 2.0 | Biotechnology | Strong Buy | | WVE | 2.0 | Pharmaceuticals | Strong Buy | | ACLX | 2.0 | Biotechnology | Strong Buy | | PRVA | 2.0 | Health care services | Strong Buy | | BBIO | 2.0 | Biotechnology | Strong Buy | | GH | 2.0 | Health care services | Strong Buy | | EPRT | 2.0 | Diversified REIT | Strong Buy |

Sources:

1. CNN Business
2. Yahoo Finance
3. The Motley Fool
4. Barron's

Investors seeking growth opportunities in the second half of 2025 might find the consensus recommendation among analysts for Kymera Therapeutics (KYMR), Genius Sports (GENI), Axsome Therapeutics (AXSM), and other small-cap stocks listed in the table as appealing for trading in the finance sector, particularly since these companies carry strong buy ratings. Owing to the anticipated federal funds rate cuts before year-end, the favorable environment for stockpickers could lead to further investing in these promising small-cap stocks.

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