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2025-05-03 19:38:49
With investors always on the lookout for the best investments, small-cap stocks have generated significant interest over the last few years. Small-cap stocks are publicly-traded companies that have more limited assets and revenue stream than large-cap stocks. Because of this, they tend to be more volatile and riskier than larger companies. But there are many positive benefits of small-cap stocks, including the potential for higher returns, more growth opportunities, and diversification.
Here, we look at the top ten best small-cap stocks and examine some of the positive benefits they offer to investors.
1. Square Inc. (SQ): Square Inc. is a financial technology company that makes software products for small businesses. Its stock has seen tremendous growth in the past five years, and its market cap currently stands at over $45 billion.
2. Etsy Inc. (ETSY): Etsy Inc. is a popular e-commerce platform for craftspeople and artisans. With its stock price up more than 420% since going public in 2015, Etsy has become a formidable player in the small-cap space.
3. FuelCell Energy Inc. (FCEL): FuelCell Energy Inc. is a clean energy innovator in the residential and commercial markets. Its stock has more than quadrupled since going public, and it currently has a market cap of over $1 billion.
4. Pandora Media Inc. (P): Pandora Media Inc. is one of the leading streaming music companies on the market. Since going public at the end of 2011, its stock has risen more than 350%, giving it a current market cap of over $3.5 billion.
5. Solar Edge Technologies Inc. (SEDG): Solar Edge Technologies Inc. is a global leader in residential solar technology. Its stock has quadrupled since going public in 2015, and its current market cap stands over $6 billion.
6. Realogy Holdings Corp. (RLGY): Realogy Holdings Corp. is a leading real estate franchiser with iconic brands like Century 21, Coldwell Banker, and Sotheby's International Realty. Its stock has more than doubled in the past three years, and it currently has a market cap of over $6 billion.
7. Intuit Inc. (INTU): Intuit Inc. is a leading consumer financial software company. Its stock has risen more than 140% over the past four years, and it currently has a market cap of over $54 billion.
8. Wayfair Inc. (W): Wayfair Inc. is an e-commerce giant specializing in furniture, homegoods, and much more. Its stock has risen 280% in the past three years, and it currently has a market cap of over $21 billion.
9. Tupperware Brands Corp. (TUP): Tupperware Brands Corp. is a leading global direct-to-consumer marketer of kitchen and home products. Its stock has more than quadrupled in the past four years, and its current market cap stands at over $2 billion.
10. GrubHub Inc. (GRUB): GrubHub Inc. is an online food delivery company specializing in takeout and delivery. Its stock has been on a tear since its IPO in 2014, and its current market cap stands at over $9 billion.
The positive benefits of investing in these ten best small-cap stocks can be considerable. For example, all of these stocks have seen significant price appreciation since going public, making them great investments for long-term gains. In addition, these stocks offer investors greater growth potential since they are smaller companies and may have more room to expand. Finally, investing in a mix of large-cap and small-cap stocks can be a great way to diversify your portfolio and potentially reduce your overall risk.
Whether you are a novice investor or a seasoned pro, there are plenty of positive benefits that come with investing in small-cap stocks. The top 10 best small-cap stocks are a great place to start, offering investors the potential for significant returns along with greater diversification.