As the name suggests, smid-cap stocks have a valuation between $200 million and $20 billion. The definition is pretty flexible, but I’ll be working with the broadest one. Most stocks on the market fall into this category, so I think it is a good way to check the general pulse of the broader economy and look into some up-and-coming companies that may one day be the large caps of tomorrow.
We will be taking a look at some of them in this article by looking through stocks within the aforementioned market cap, sorted by their year-to-date gains so far in 2025. Do note that OTC stocks will not be included in this list.
You should keep in mind that while some of these stocks could be good buys, there is also a significant downside risk to stocks that have gained a lot recently. Regardless, let’s take a look at the top 10 stocks.
A close-up of a chart of company stock prices rising, reflecting its market capitalization.
10. Inari Medical (NASDAQ:NARI)
YTD Performance: 53.5%
Inari Medical (NASDAQ:NARI) makes medical devices. These devices are mostly used to treat blot clots in veins. Inari Medical is what I discussed before in an article talking about mid-cap stocks. Why is it surging so much this year? In short, Stryker announced it’s buying Inari Medical for $4.9 billion at $80 per share in cash.
Click here for more details.
9. Cerence (NASDAQ:CRNC)
YTD Performance: 61.16%
Cerence (NASDAQ:CRNC) is a tech company that makes voice-based virtual assistants for cars and other forms of transportation. It designs its AI software to handle natural language interactions so that drivers can speak naturally instead of tapping at screens or scrolling through menus. Most of Cerence’s revenue comes from licensing its in-car voice recognition technology and cloud-connected services to automakers worldwide. It has also expanded into generative AI for next-generation in-vehicle experiences, and this shift has drawn plenty of attention.
Cerence expects total revenue in a range of $236 million to $247 million, which includes about $20 million from fixed contracts. The company hit a negative adjusted EBITDA figure of $1.9 million in the fourth quarter of fiscal 2024, yet it exceeded revenue expectations in that same quarter by posting $54.8 million. Its management team has stated that profitability in 2025 is a top priority, and it has outlined cost savings of $35 million to $40 million. Analysts covering Cerence are slightly more optimistic now than they were several months ago, and they see a revenue potential of roughly $242 million in 2025.
Cerence then announced a shift to generative AI in November. This is mainly what caused the spike that month last year. It then repurchased $27 million of its convertible senior notes due 2025 at a discount in December and expanded partnerships with Nvidia (NASDAQ:NVDA). These back-to-back events are why CRNC turned into a multibagger.
It is now well over $13.
8. ThredUp (NASDAQ:TDUP)
YTD Performance: 61.35%
ThredUp (NASDAQ:TDUP) is an online marketplace to sell used items, like shoes and clothing. It’s basically a big online thrift shop. They make most of their money through their consignment model. Consignment revenue made up about 82% of their total revenue. They also send people clean out kits for people who want to declutter and get rid of used clothes.
2024 wasn’t that eventful for ThredUp. This stock crashed hard back in July 2024 and was struggling up until November when it finally recovered. In Q4 though, ThredUp announced that its revenue is going to come in between $66.7 million and $67.2 million. This is a 9% jump year-over-year and beat earlier guidance of $58 million to $60 million. ThredUp has also pulled back from its European operations by divesting a subsidiary called Remix Global EAD and is looking to focus more on the U.S. market. I believe all of these are very positive developments, especially the fact that gross margin for the quarter is looking like it will land around 80.2% to 80.4%.
James Reinhart, ThredUp’s co-founder and CEO, said: “I am encouraged by our preliminary fourth quarter results that exceeded all elements of our guidance, and the return to solid growth in our core business”
7. Senseonics Holdings (NYSEAMERICAN:SENS)
YTD Performance: 78.94%
Senseonics Holdings (NYSEAMERICAN:SENS) makes implantable continuous glucose monitoring (CGM) systems that help people with diabetes track their blood sugar in real time. It offers the Eversense line of products. It uses a sensor under the skin that sends data to a transmitter worn on the body, and that transmitter relays readings to a smartphone. This product segment is responsible for most of the company’s revenue because it is the core focus of Senseonics.
Preliminary results show about $22.5 million in total revenue for full-year 2024, and they expect further growth after launching the Eversense 365 system, which received FDA approval. The company also canceled a planned special meeting for a reverse stock split. This has pushed trading interest higher, and many analysts think there is potential for Eversense 365 to gain notice among patients who prefer a long-term CGM solution. Meanwhile, management sees new patient starts on the rise, and they believe the overall user base could expand even more in 2025.
Anyone digging into the nitty-gritty of Senseonics’ finances should know that net losses have remained a factor, but management continues to prioritize product adoption and revenue growth. The company expects positive revenue trends in 2025, and it plans to share updated guidance when the final 2024 results are ready. Investors seem optimistic that the long-term CGM market could give Senseonics a useful niche. The share price has climbed partly because the Eversense 365 system is the first technology of its kind that can last a full year without frequent sensor replacements.
6. Agilon Health (NYSE:AGL)
YTD Performance: 75%
Agilon Health (NYSE:AGL) is a healthcare outfit that teams up with local primary-care doctors. It helps those doctors serve Medicare Advantage members, and it tweaks the business side so doctors can focus on patients instead of tangled fee-for-service billing. It might sound fancy, but the core idea is straightforward. Its biggest source of revenue is medical services for Medicare Advantage members, and that line makes up nearly all the money the company pulls in. There’s a smaller chunk that comes from other sources, but the Medicare Advantage business is where the real cash is.
Total revenue hit about $1.45 billion in Q3, and that marked a 28% jump from the previous year. Membership for Medicare Advantage grew 37% to 525,000 members, so they’ve been gaining ground on that front. However, they posted a net loss of $118 million for the quarter, which was worse than the $31 million net loss they reported in the same quarter last year. That’s not ideal. You can blame a few things for this loss, including higher medical costs. I’ll admit I’m not thrilled about negative nets — even growth stories need to show they can turn a profit down the road.
They’ve still been one of the hotter names in healthcare. Part of the reason might be the rising number of baby boomers in Medicare Advantage plans, plus the way this company positions itself as a unique partner for doctors. They’re riding that wave of demand for better-managed care and pushing that message of “we’ll help doctors help patients.” Investors tend to like high-growth membership stories, although the net losses can be a little unsettling.
I see them growing in new markets and adding members who bring recurring revenues, so that’s likely why it’s up so much in the stock market this year. Investors love that top-line growth. The negative margins can be fixed if they can control costs and keep membership rolling in. Its recent membership surge looks promising, but the losses will probably keep some people cautious. If they show that they can fix the profitability issue, I predict more progress. They’re gambling big on the long-term potential of a fast-growing senior population, and that’s a story some people will buy into for a good while.
5. Sana Biotechnology (NASDAQ:SANA)
YTD Performance: 82.7%
Sana Biotechnology (NASDAQ:SANA) is a company that makes medicine by engineering sales. Most of its money comes from financing and partnerships since the company does not generate meaningful revenue from product sales at this point. There was some buzz recently about Sana’s increased focus on type 1 diabetes and B-cell-mediated autoimmune diseases. Executives decided to cut back on certain oncology efforts in order to extend their cash runway into 2026, and leadership believes this emphasis on immunologic diseases may speed up development. Sana announced positive clinical results in type 1 diabetes, and the company seems excited about its hypoimmune platform. Investigators have reported promising signs that these modified cells can avoid immune detection while producing some real benefits for patients.
If anyone is diving into Sana’s financials, there is a lot to unpack. Net loss for the three months ending September 30, 2024, was $59.9 million, and management reported $199 million in cash, cash equivalents, and marketable securities. This cash should hold them over for a while, though there is a chance their operating cash burn for 2024 might rise above $200 million because of recent changes. Meanwhile, research and development costs went down, and top executives believe this will help contain expenses and focus the pipeline.
In my opinion, the stock’s big jump this year is tied to optimism about the company’s reorganized pipeline and early clinical data. People are more interested in new therapies for long-standing problems like type 1 diabetes, and Sana is targeting exactly that. There is always the risk that a pre-commercial biotech might stumble, but Sana’s leadership gadgets and strategic focus seem to be fueling enthusiasm among some investors. It also helps that the company has fresh clinical trials on the horizon and a patent portfolio that might attract partnerships. Time will tell whether Sana can sustain its upward momentum, but for now the company has genuine excitement around its engineered cell therapies.
4. H&E Equipment Services (NASDAQ:HEES)
YTD Performance: 84.7%
H&E Equipment Services (NASDAQ:HEES) is a company I have covered recently. This company rents out heavy machinery, and the recent spike was due to United Rentals announcing that they would buy this company for $4.8 billion.
I recommend you read more about it in this article.
3. Compass Therapeutics (NASDAQ:CMPX)
YTD Performance: 86.8%
Compass Therapeutics (NASDAQ:CMPX) is a clinical-stage biotech outfit that focuses on cancer treatments and antibody-based therapeutics. Its main programs include tovecimig, which used to go by CTX-009, and a few other antibodies in the pipeline. These drugs are still under development, so the company does not rake in major revenue from product sales. It runs on external financing and public offerings instead. Tovecimig is probably the most significant candidate right now, and management expects Phase 2/3 data in biliary tract cancer by the first quarter of 2025. That program has drawn a lot of interest from investors because it might deliver solid results that could push the stock higher.
Recent news suggests the company has moved forward with clinical trials for its lead candidates. Tovecimig will head into a Phase 2 trial for DLL4-positive colorectal cancer in mid-2025. Plus, there’s a new drug candidate called CTX-10726 that targets PD-1 and VEGF-A. In my opinion, these updates look promising, although it can always be a rollercoaster with small-cap biotech.
Compass Therapeutics reported a net loss of about $10.5 million for Q3 2024, and it had $135 million in cash and marketable securities. The recent updates about its pipeline have lifted its share price. The stock is up 87% this year. I think investors expect meaningful trial results in the near term. The hope is that positive top-line data will justify the big research and development spending and push the stock higher.
2. Accolade (NASDAQ:ACCD)
YTD Performance: 101.2%
Accolade (NASDAQ:ACCD) is in the business of personalized healthcare solutions. The company makes most of its revenue from these personalized care and navigation products, which let plan sponsors (like large employers and some health plans) offer a single place for members to figure out their healthcare options, talk to clinicians, and get referrals. That is the big money-maker in their lineup, although they also offer telehealth visits and medical opinion services for various conditions.
Recent updates have drawn plenty of attention. Accolade reported second-quarter 2025 revenue of around $106.4 million, which was a jump of almost 10% year-over-year and slightly above analysts’ estimates. It still posted a net loss of about $23.9 million, but that was a narrower loss than in past quarters. Company leadership says they are on track to reach their first full year of adjusted EBITDA profitability plus positive cash flow in fiscal year 2025, which excited investors. Meanwhile, management reaffirmed its guidance for the rest of the fiscal year, another reason the market has taken a liking to the stock.
There’s also chatter about a potential acquisition by Transcarent. Sources say the two sides reached a deal valued at hundreds of millions, although the exact timing and final terms are not set in stone. In my opinion, the combination of beaten estimates, narrower losses, and talk of a possible acquisition has driven the stock higher this year. Then again, it helps that the company has been trying to control costs and pivot toward the black. A lot can still happen, but Accolade appears to be heading in a positive direction and proving that personalized healthcare might be a big deal in the industry.
1. FuboTV (NYSE:FUBO)
YTD Performance: 161%
FuboTV (NYSE:FUBO) calls itself a sports-first cable TV replacement, and it makes most of its money from subscriptions. It also pulls in revenue from advertising, which is a growing part of the business. In the United States, the company offers more than 400 channels with live sports, news, and entertainment. Management is especially proud of its robust sports lineup, and that’s why many people see it as an alternative to traditional cable bundles.
Fubo posted 21% year-over-year revenue growth and 1.613 million subscribers in North America in Q3 2024. That suggests the company has been on a solid growth track. The basic channel package is not the only subscription tier, and premium or add-on packages account for a good chunk of revenue. Still, regular subscription fees remain the main driver. Advertising helps, but it’s currently smaller, though the company hopes ad revenue will climb over time.
Fubo has been in the headlines because it just announced it will combine with Disney’s Hulu + Live TV. Disney will own 70% of Fubo, and the merged operation will still trade on the stock market under the Fubo name. This plan has boosted Fubo’s share price. It seems investors are excited about the combined subscriber base, which could exceed six million if you add Fubo’s 1.6 million premium accounts to Hulu + Live TV’s 4.6 million subscribers. That’s a lot of potential eyeballs, so it’s no surprise the market cheered. It’s good news for Fubo because it will get access to Disney’s marketing might and its sports properties.
Fubo’s management has also made noise about trimming content costs. The company has been adding FAST (free ad-supported streaming TV) channels, which do not carry the same expensive licensing fees. That move will probably help the company’s profit prospects. I think the combination of premium sports content, cheaper programming through FAST channels, and more people cutting the cord will help Fubo’s revenue keep climbing. The deal with Disney should give it a wider runway to attract subscribers who still want a big sports bundle at a lower price than cable.
In my opinion, Fubo’s stock is up so much because investors see it as a winner in the shift away from traditional TV. Adding Hulu + Live TV to the mix gives it a bigger audience and, presumably, more leverage in future content negotiations. The expanding subscriber base and possible advertising upside are big draws for people who think the combined service can land some muscular profits down the road.
While we acknowledge the potential of FUBO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FUBO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 10 Hottest Mid-Cap Stocks So Far in 2025 and 10 Hottest Large-Cap Stocks So Far in 2025
Disclosure: None. This article was originally published at Insider Monkey.
