Zacks Small Cap Research 2024 Initiations and Best Ideas for 2025

Zacks Small Cap Research was hard at work in 2024 initiating analyst coverage on 40 companies. Each of our initiation reports provides a valuation, investment thesis and financial forecast model that comes from our 11 experienced analysts’ expertise and due diligence. Our work has generated investment ideas in health care, consumer electronics, finance technologies, transportation, AI-based products, and oil and gas production among other industries.

The last year has been one fraught with risks, critical elections around the globe and multiple ongoing military conflicts among other material events. Despite this, index performance as measured by the S&P was positive in 2024, with large caps outperforming mid-caps and mid-caps surpassing small caps. Much of the strong performance was driven by tech stocks and the Magnificent Seven while other areas lagged.

However, at Zacks SCR, we see a lot of opportunity in the smaller cap names. As we look forward to 2025, Zacks Chief Equity Strategist John Blank expects industrials and technology to continue their run and is recommending names in the transportation, insurance and utilities spaces. We list some of our best ideas in smaller end of the equity universe below:

Ligand Pharmaceuticals (NASDAQ:LGND) is a royalty aggregator which has a large opportunity set of biopharma names where it can deploy its capital for future growth. MetaVia Inc. (NASDAQ:MTVA; previously NRBO) has two development assets in the metabolic space which could ride the tidal wave in the obesity driven by GLP-1 agonist success. Telomir Pharmaceuticals (NASDAQ:TELO) represents another area of interest in longevity. It is developing a technology to address a variety of aging related disease. In the natural resources industry, Goliath Resources (OTC:GOTRF) boasts an attractive land position and a large portfolio of future projects in gold and other metals extraction. Clip Money (OTC:CLPMF), a fast-growing startup that provides inexpensive and convenient cash management services to small businesses. Transportation is another attractive area represented by Titan International (NYSE:TWI). It is a global vehicle equipment manufacturer that targets the agriculture and construction markets manufacturing OEM-spec replacement products. Another transportation derivative is Consumer Portfolio Services (NASDAQ:CPSS), which purchases and services auto loans. Its use of technology builds upon an improving backdrop of origination volumes. For those looking to take advantage of China’s continued modernization and expanding middle class, Viomi Technology (NASDAQ:VIOT) offers home water purification in a region increasingly demanding higher water safety.

Story Continues

Zacks SCR offers a number of compelling ideas that may be appropriate for your portfolio in 2025. From health care to manufacturing and consumer to technology, we have several small cap ideas that leverage the most important investment themes of the coming year. View the full list of Zacks SCR’s initiation reports by analyst below.

Zacks SCR Analysts | Research Reports

Analyst Company Initiation Report Description Adaptimmune Therapeutics ADAP Cell therapy for cancer Beneficient BENF Investment liquidity solutions Consumer Portfolio Services CPSS Auto finance Michael Kim DeFi Technologies DEFTF Crypto asset management/trading Lobo EV Technologies LOBO China EV: bike, scooter, golf cart QuantaSing Group Limited QSG Senior products/services ATRenew RERE Pre-owned consumer electronics platform reAlpha Tech Corp. AIRE Real estate pricing technology American Shared Hospital Services AMS Surgery equipment - gamma knife M. Marin SBC Medical Group Holdings SBC Med practice management services - cosmetics Swiss Water Decaffeinated Coffee SWSSF Decaffeination of green coffee Syra Health Corp. SYRA Behavioral & mental health Azitra AZTR Rare skin disease Cingulate CING New ADHD formulation Grace Therapeutics GRCE New nimodipine formulation John D. Vandermosten, CFA IN8bio INAB Cell therapy in cancer Ligand Pharmaceuticals LGND Pharma royalty aggregator Lantheus Holdings LNTH Radiopharmaceuticals Spectral AI MDAI Burn diagnostic Rani Therapeutics RANI Oral delivery of biologics Clip Money CLPMF Cash management services Lisa Thompson KULR Technology Group KULR EV battery & thermal runaway for space & aviation Perfect Corp. PERF AI-based AR try-on for fashion & beauty brands Cadrenal Therapeutics CVKD Anticoagulant for heart attack/stroke David Bautz, Ph.D. FibroBiologics FBLG Cell therapy, regen medicine MetaVia (formerly NeuroBo Pharmaceuticals) MTVA/NRBO Cardiometabolic disease, obesity Evaxion Biotech A/S EVAX DNA based cancer therapy Brad Sorensen, CFA NurExone Biologic NRXBF Paralysis reversal Telomir Pharmaceuticals TELO Age reversal sciences Ronald Wortel Goliath Resources GOTRF Metals & mining Monogram Orthopedics MGRM Orthopedic implants SunCar Technology Group SDA Insurance & auto services in China Thomas Kerr, CFA Sacks Parente Golf SPGC Golf products Titan International TWI Machinery vehicle parts U.S. Energy Corp. USEG Oil & gas production Brian Lantier, CFA SaverOne 2014 Ltd. SVRE Tech for driver safety Viomi Technology Co. VIOT Water filtration technology

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