21 Best-Performing Small-Cap Stocks for November 2024

Small-cap stocks can bring diversification and higher growth potential — albeit with higher risks — to a portfolio. Here's what to know before investing.
Understanding Small-Cap Stocks

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.


The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Updated · 2 min read
Profile photo of Anna-Louise Jackson
Writer
Profile photo of Robert Beaupre
Edited by Robert Beaupre
Lead Assigning Editor
Fact Checked

Investors salivate over the biggest companies in the market — the likes of Apple, Google and Amazon — but where’s the love for the market’s perpetual underdogs: small-cap stocks?

When these investments do get some time in the limelight, it’s often for unflattering reasons — violent price swings or fraudulent activity, for example. Small caps can diversify portfolios and bring higher growth potential — albeit with higher risks.

However, the value of small-cap stocks grew more than 10% in the first 10 months of the year, buoyed in part by the Federal Reserve interest rate cut in September. Still, the rise lags behind the S&P 500, which saw growth of more than 20% during the same time period.

What are small-cap stocks?

Small-cap stocks are company shares with market values between $250 million and $2 billion, though that range isn't universal

. "Cap" is shorthand for market capitalization, or the total number of a company’s shares multiplied by its current stock price.

The definition of small when it comes to stocks is subjective. The Russell 2000 Index, the first benchmark of small-cap stocks, is the best-known gauge. The market caps of its member companies currently range from about $240 million to $6 billion. The other major indexes tracking these stocks — the Standard & Poor’s SmallCap 600 and the MSCI USA Small Cap Index — include U.S. companies with even broader ranges of market caps.

Small-cap stocks vs. mid-cap and large-cap stocks

Again, definitions can vary, but here is the breakdown of small-cap stocks versus mid-cap and large-cap stocks, according to the Financial Industry Regulatory Authority (FINRA):

  • Small-cap stocks: Public companies valued at $250 million to $2 billion.

  • Mid-cap stocks: Companies whose market capitalization is more than $2 billion but less than $10 billion.

  • Large-cap stocks: Companies worth $10 billion or more. 

Best small-cap stocks, ordered by one-year performance

Below is a table of the seven best-performing stocks that are listed on major U.S. exchanges and have a market cap under $10 billion, ordered by one-year returns.

Ticker

Company

Performance (Year)

WGS

GeneDx Holdings Corp

4035.11%

DRUG

Bright Minds Biosciences Inc

3468.89%

FTEL

Fitell Corp

2595.58%

SEZL

Sezzle Inc

2142.11%

LBPH

Longboard Pharmaceuticals Inc

1013.62%

NXL

Nexalin Technology Inc

989.66%

DOGZ

Dogness (International) Corp

873.75%

LSF

Laird Superfood Inc

793.04%

JANX

Janux Therapeutics Inc

747.20%

RNA

Avidity Biosciences Inc

717.77%

ROOT

Root Inc

702.37%

CRVS

Corvus Pharmaceuticals Inc

671.19%

VKTX

Viking Therapeutics Inc

661.55%

DAVE

Dave Inc

649.22%

ALTS

ALT5 Sigma Corp

647.11%

LUMN

Lumen Technologies Inc

614.21%

ASPI

ASP Isotopes Inc

601.80%

SNYR

Synergy CHC Corp

595.66%

CAPR

Capricor Therapeutics Inc

594.64%

ASTS

AST SpaceMobile Inc

587.32%

NEON

Neonode Inc

545.61%

Source: Finviz. Data is current as of market close Nov. 1, 2024, and is intended for informational purposes only, not for trading purposes.

Small caps historically have a relatively high correlation — meaning they tend to move in lockstep — with large-cap stocks. But which group is performing better than the other over a given time frame fluctuates regularly, based on factors such as macroeconomic growth and politics.

Why small-cap stocks are risky

As small-cap businesses expand, their stocks offer a higher growth potential compared with larger companies. But that comes with a greater risk of volatility — including more (and bigger) fluctuations in stock prices and earnings reports. This trade-off is known as the risk premium.

Small-cap stocks can also be more fertile territory for fraudulent activity.

Why small-cap stocks are appealing

The sheer number of small-cap stocks means there’s a plethora of options for investing in them. What’s more, the proliferation of exchange-traded funds has made it easier to buy a basket of stocks with a specific investing strategy — growth or value, for example. Small caps can be an under-appreciated — or even overlooked — way to add diversification to your portfolio.

Why small-cap stocks are not that different

It’s important to know what makes small-cap stocks distinctive, but you shouldn’t necessarily obsess over the differences. They have a lot in common with the others that might be in your portfolio: They trade on exchanges, their prices are published intraday, Wall Street analysts write research reports about them, and by virtue of being public, these companies must disclose a wealth of information to investors.

More on stock investing

Get more smart money moves – straight to your inbox
Sign up and we’ll send you Nerdy articles about the money topics that matter most to you along with other ways to help you get more from your money.

People pay thousands to get a personalized financial plan. Now you can get one for free with NerdWalletCoach.

    Powered by Uprise

    AD