In this article, we will take a look at some of the best stocks with the biggest upside.
In times when everyone is chasing high-cap powerhouses, knowing the right stock to invest in at the right time and the right price is highly essential. In this race for Wall Street giants, one must slow down and ask if the stock is really worth it. Or better – is it set to yield the same returns as a high-growth small-cap stock? As Francis Gannon, Co-Chief Investment Officer at Royce Investment Partners, says:
“Small-cap stocks are a ‘forgotten’ group that present lucrative opportunities for investors seeking diversification amid market uncertainties.”
Small-cap stocks have a market capitalization between $300 million and $2 billion. Although generally more volatile and risky, history shows that small-cap stocks have often outperformed large-cap stocks. During the tech bubble of the 1990s, large-cap stocks were everyone’s favorite, until the bubble burst in March 2000, when more and more small-cap companies witnessed better performance. In general, the performance of the stock doesn’t entirely depend on whether the stock is large-cap or small-cap but more on where the macro and micro environments are taking the business. However, since the small-cap stocks are usually away from the analysts’ eyes, they are more undervalued, and so can provide a solid return on the investment.
Since there is a high growth potential for such a stock, small-cap stocks are highly valued by analysts. As the business itself is in an early stage of growth, there is more room for a stock boom. Volatility is another reason for holding these stocks. There is an increased likelihood of short-term trading and price swings that an investor can capitalize on. Additionally, many such stocks operate in specialized or niche markets, allowing the analysts to leverage interesting and unique business models, and that too, if successful, can return immensely. The fact that small-cap stocks are common targets for mergers and acquisitions is another reason to believe in these stocks. Analysts keep track of these stocks with the expectation of buyouts, which often leads to a premium in share price.
A research report by John Hancock Investment Management on understanding the performance of small-cap stocks indicated that, historically, small-cap stocks have had higher average returns than large-cap stocks. As small-cap stocks work well in diversified portfolios, they behave differently than large-cap stocks. The study examined the existence of size premiums in the United States, emphasizing the historical performance of Fama/French U.S. Small and Large Cap portfolios. The findings show that since the 1920s, small-cap stocks have outperformed large-cap stocks. Another research by Invesco in 2020 revealed that small caps have outpaced large caps from the past four recessions in all but one of the following 1- and 3-year periods.
To decide which small-cap stock is right for you, it is pertinent to monitor closely not only the stock itself but also its peers, as it provides a bigger picture. The factors that are crucial in the choice you make include the liquidity position, sensitivity to market swings, financial stability, and connection to AI. The stocks that we have selected are among the ones yielding high upside potential across a range of industries like financial, food, and mining.
A technical stock market chart. Photo by Energepic from Pexels
Our Methodology
We have used Finviz and Stock Analysis screeners to select ten stocks with market capitalizations between $300 million and $2 billion. The one-year price targets have been extracted from Yahoo Finance to calculate the upside potential based on the stocks’ prices as of March 28, 2025. These companies are then listed according to their upside potential.
At Insider Monkey, we are obsessed with hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Mission Produce, Inc. (NASDAQ:AVO)
Upside Potential: 68%
Market Capitalization: $719.247 million
Mission Produce, Inc. (NASDAQ:AVO) is a global producer and distributor of avocados, mangoes, and blueberries. Founded in 1983, the company owns and operates four packaging facilities in major growing locations worldwide, including California, Mexico, and Peru. With three main segments- Marketing and Distribution, International Farming, and Blueberries- the company offers ripening, custom packaging, logistical management, and quality assurance services. By promoting ethical supply chains, the company aims to cultivate a better future for upcoming generations.
While some stocks have short-term gains and others return in the long term, Mission Produce, Inc. (NASDAQ:AVO) is an all-rounder stock. The global and United States demand for avocados has been on the rise for years, owing to the demographic boom and the superfood taking over the food trends. With people switching to healthier food choices and the popularity of avocados among today’s generation, the stock is more and more compelling with each passing day. In the past, while we have seen avocados be the growth catalyst for Mission Produce, Inc. (NASDAQ:AVO), the recent trend shows that the mango segment is not slowing as well.
If we consider the avocado business on its own, rising prices due to the demand surge and population rise are just adequate for the company’s decent profit margins. Amid rising commercial tensions between Mexico and the U.S., the global sourcing capabilities of Mission Produce, Inc. (NASDAQ:AVO) make it a valued player and stock to not only benefit from the trade war, with prices going up, but also avoid tariffs by supplying to non-trade war countries.
The company’s plans to expand by investing in Guatemala’s avocado facilities and Peru’s blueberry farming mean that Mission Produce, Inc. (NASDAQ:AVO) is ready to step up the game. In this globalized world, mango is following in the footsteps of avocados, particularly in the U.S., and before we know it, mango will be the next avocado for the company. AVO is one of the best stocks with the biggest upside.
9. Abacus Global Management, Inc. (NASDAQ:ABL)
Upside Potential: 82%
Market Capitalization: $736.431 million
Abacus Global Management, Inc. (NASDAQ:ABL) is a financial service provider with headquarters in Orlando, Florida. Focusing on asset management, data-driven wealth solutions, technology innovations, and institutional services, the company is one of the leading and diversifying firms in the industry. ABL claims to optimize financial outcomes for individuals and institutions globally by leveraging proprietary data analytics and years of experience in the industry. It is among the best stocks with the biggest upside.
While we more widely know it as Abacus Life, the company recently renewed its name to Abacus Global Management, Inc. (NASDAQ:ABL) in an attempt to highlight its transition from being a life insurance provider to a global financial empire. Jay Jackson, the CEO of the company, stated the following:
“Our evolution to Abacus Global Management represents a significant milestone in our company’s journey to revolutionize financial services through expert asset management leveraging advanced technology and to deliver personalized lifespan-based financial solutions.”
Northland ranked Abacus Global Management, Inc. (NASDAQ:ABL) as a top pick for 2025, owing to its strategic expansions for the year. With a current price of $7.62, analysts on Wall Street have set a price target of $13.88, reflecting a potential upside of 82%.
The management of Abacus Global Management, Inc. (NASDAQ:ABL) has plans to capitalize on the ABL Wealth segment of the business. Evolving beyond the conventional “one size fits all” models, the company is redefining the overall financial structure by providing tailored financial strategies based on the client’s health, longevity, and overall well-being.
The ABL Tech division is also one of a kind. The company is building innovative technologies that would assist in conducting real-time mortality verification, locating missing participants, and serving the secondary life insurance market accurately and efficiently. As long as Abacus Global Management, Inc. (NASDAQ:ABL) holds onto the rope of innovation and adapting strategies tightly, we can weigh in on ABL.
8. PDF Solutions, Inc. (NASDAQ:PDFS)
Upside Potential: 88%
Market Capitalization: $754.114 million
PDF Solutions, Inc. (NASDAQ:PDFS) is a data solutions provider that empowers enterprises in the semiconductor and electronic market to enhance operational efficiency and improve the overall quality of their products. This small-cap company delivers its offerings to Fortune 500 Companies to achieve smart manufacturing goals. Ever since its incorporation in 1991, PDFS has been an invaluable partner to over 130 semiconductor companies.
With the company’s recent acquisition, we can say that PDF Solutions, Inc. (NASDAQ:PDFS) is on a path to recovery after the unimpressive 2024 results and 2025 guidance. This deal with secureWISE, a widely used remote connectivity solutions provider in the semiconductor industry, is a huge step forward as this would mean a 21-23% revenue growth within the year. Although the earnings for 2026 would reflect a more profound impact, sales guidance suggests around an $18 million contribution per annum.
Like any other high-growth company, PDF Solutions, Inc. (NASDAQ:PDFS) firmly embraces AI. The company is adopting the eProbe purchases model and aiming to expand the applications for advanced logic and DRAM. While maintaining a more balanced spread across system enterprises, foundries, IDMs, and fabless, the tech giant has indulged in some diversification over the years. The customers’ enhanced interest in the DFI eProbe system is the basis of a strong footing for the company in the industry.
The analysts at Stock Scan are highly optimistic about the company’s future performance. By the year’s end, PDF Solutions, Inc. (NASDAQ:PDFS) is anticipated to surge by over 120%, with the stock price rising to an average of $51.18 by late next year. For investors valuing high returns, PDFS is one of the best stocks with the biggest upside, considering the dip the stock is currently experiencing.
7. Kura Sushi USA, Inc. (NASDAQ:KRUS)
Upside Potential: 97%
Market Capitalization: $622.611 million
Kura Sushi USA, Inc. (NASDAQ:KRUS) is a technology-enabled Japanese restaurant in the United States. The company was formerly known as Kula Sushi USA, Inc. until it revised its name in 2017. This California-based restaurant chain mainly provides access to on-demand ordering screens, plate slots, Bikkura-Pon rewards machines, and express conveyor belts. Here, authentic Japanese cuisine, including Sweet Shrimp, Tuna, Garlic Tuna Steak, and Salmon, is offered through innovative and advanced models.
Belonging to a small circle of high-growth restaurant stocks, Kura Sushi USA, Inc. (NASDAQ:KRUS) has gained a lot of attention, particularly from Wall Street. There’s hardly any debate. The company’s double-digit growth year after year, robust debt management, and considerably high restaurant-level margins are just a few reasons to believe in the stock. Who doesn’t love good sushi, especially if it comes with huge upside potential?
Its speed is what stands out the most. With plans to open around 14 restaurants in 2025, Kura Sushi USA, Inc. (NASDAQ:KRUS) is maintaining a growth rate of nearly 20% YoY. Not only this, but the company is gearing up to expand in even more locations in the next fiscal year by adopting a real market strategy that aids in maximizing its potential.
But expansion isn’t the only growth driver for Kura Sushi USA, Inc. (NASDAQ:KRUS). The company recently unveiled an upgraded reservations strategy and a self-service system with an emphasis on operations. When we view this with the ‘Perfect Pair’ promotion and pricing techniques, despite its weak IP calendar in the first half of FY 2025, we can say that the next half will show a somewhat different picture. Todd Brooks, an analyst at Benchmark, maintains a Buy rating with a price target of $100. The analyst considers Kura Sushi a top pick in the dining industry as it is one of the best stocks with the biggest upside.
6. DoubleDown Interactive Co., Ltd. (NASDAQ:DDI)
Upside Potential: 106%
Market Capitalization: $487.11 million
DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) is a leading developer and publisher of digital games on mobile and web-based platforms. The company is widely recognized for delivering real Las Vegas-style entertainment to players worldwide through the creation of multi-format interactive experiences via an online social casino platform. Among the top games developed by the company are DoubleDown Fort, DoubleDown Classic, Ellen’s Road to Riches, and DoubleDown Casino, with the latter being its flagship game.
Though DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) has consistently witnessed a dip, analysts expect that it will steer its way back to growth. The company’s purchase of SuperNation is one of the reasons analysts believe in the stock’s huge upside potential. The testament to the success of the acquisition is management’s statement regarding leveraging the model of the acquisition in its future projects. While the quarterly revenues have surged from $6.5 million to $9.5 million in just a year, the company plans to grow its new iGaming business through enhanced marketing investment and collaboration with new players in the U.K. and Sweden industries.
Not only this, DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) is working towards a more optimized operational process, particularly “live ops”, to scale business foundations. By securing new licenses, the company is just in the right position to leverage its core strengths across technology, game development, and intelligence service.
DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) has adopted three strategies to mitigate its risks: enhancing the entertainment value, increasing direct-to-consumer revenue, and achieving additional returns from the SuperNation acquisition. As long as the management is able to capitalize on these, we have a strong reason to view DDI as a bull case.
5. Krispy Kreme, Inc. (NASDAQ:DNUT)
Upside Potential: 129%
Market Capitalization: $851.5 million
Krispy Kreme, Inc. (NASDAQ:DNUT) is an American multinational retailer and wholesaler of a variety of doughnuts, including glazed, iced, and filled doughnuts. The giant also offers beverages and ice creams, along with catering and delivery services across the United States, Asia, and Europe. The company is focused on delivering the most awesome doughnuts on the planet daily. It is one of the best stocks with the biggest upside.
Ever since the partnership with fast food giant McDonald’s Corporation broke the news, the stock has been of interest to many investors. As per its recent earnings report, Krispy Kreme, Inc. (NASDAQ:DNUT)’s Points of Access (“PoAs”) grew around 34% year-over-year during the last quarter of FY2024 and 59% over a span of two years, standing at 9,951 within the U.S. alone. By FY2026, the company aims to reach as high as 15,000 PoAs, with McDonald’s hosting around 40%.
Not only this, Krispy Kreme, Inc. (NASDAQ:DNUT) has made significant advancements in recent years, from divesting a majority stake in Insomnia Cookies to expanding with national distribution partners. Joshua Charlesworth, the President and CEO of DNUT, made the following comment in this regard:
“In 2025, we expect to continue our U.S. expansion with national partners, both existing and new. For example, Costco. An added benefit of this expansion with national partners is the opportunity to identify and close existing underperforming doors, which we expect to do in 2025.”
This statement is reinforced by the company’s expansion to Brazil in partnership with Ipiranga’s AmPm, using a capital-light franchise strategy. This collaboration is seen as a key step forward in what could be a sweet spot in the market. Considering this, analysts have one-year price targets of $17.50 and $6 on the higher and lower ends, respectively. This makes it a stock with the biggest upside potential.
4. Applied Optoelectronics, Inc. (NASDAQ:AAOI)
Upside Potential: 133%
Market Capitalization: $823.092 million
Applied Optoelectronics, Inc. (NASDAQ:AAOI) is a Texas-based provider of fiber-optic networking products. This vertically integrated company engages in the design and development of optical communications offerings, such as advanced optical devices, laser transmitters, cable televisions, point-to-point communications and wireless, and HFC networking. Founded in 1997, the company is dedicated to transforming communication by connecting the world more efficiently.
Recently, Applied Optoelectronics, Inc. (NASDAQ:AAOI) has made headlines with its deal with Amazon, which allows the tech giant to purchase up to 8 million of the company’s shares. As appealing as the deal looks from the outside, the company has yet to disclose the underlying terms. But it clearly implies one thing – AAOI is all in for a big game.
Applied Optoelectronics, Inc. (NASDAQ:AAOI)’s Q4 2024 earnings showcased improved performance, delivering revenue and gross margin within the forecasted range. Much of the revenue growth was attributed to the powerhouse’s 400G products, CATV segment, and expansion of production capabilities. Management also mentioned receiving a big order for its Quantum Bandwidth networking products from a leading cable operator based in North America. The returns will be reflected in the upcoming financial results, as the shipping began this month.
The strong need to produce some products domestically to meet the strict data center requirements has led Applied Optoelectronics, Inc. (NASDAQ:AAOI) to open a new production facility in Texas. The company also plans to expand in Taiwan through another production facility for a robust global presence.
The demand for AAOI’s cloud computing infrastructure and data centers makes it a strong case. And from what we can expect, the demand can be from the tech titan Amazon itself. With a one-year price target of $38.20, the company’s upside potential of 133% is a testament to our bull stance. It is among the best stocks with the biggest upside.
3. Aspen Aerogels, Inc. (NYSE:ASPN)
Upside Potential: 166%
Market Capitalization: $540.25 million
Aspen Aerogels, Inc. (NYSE:ASPN) is an aerogel technology company that engages in the design, development, and marketing of aerogel materials incorporated in the energy, industrial, electric vehicle, and sustainable insulation materials markets across the United States, Canada, Asia, Europe, and Latin America. Claiming to be a technology leader in sustainability, this Massachusetts-based company promotes the adoption of EVs, energy efficiency, and the availability of cleaner fuels in conventional energy markets through its products. It is among the stocks with the biggest upside.
In its recent earnings call, the company announced an impressive 90% year-over-year growth, with the adjusted EBITDA rising to $90 million from a loss of $23 million. Many believe it to be just the beginning. The Energy Industrial segment of Aspen Aerogels, Inc. (NYSE:ASPN) is forecasted to keep rising, with a 2025 guidance of $35 million to $40 million.
The company’s PyroThin Thermal Barriers Design Award from Volvo Truck, marking it to be the second one in the commercial vehicle segment, is yet another growth catalyst. While production will begin in the second half of 2026, sales are forecasted to ramp up in 2027.
Amid Trump’s conservative trade approach, Aspen Aerogels, Inc. (NYSE:ASPN) has adopted an effective pricing strategy, achieving optimization and collaboration with the EMF partner to reduce product costs. The Energy Industrial business is actually what the stakeholders are counting on as it will promote an exacerbated focus on energy and power generation. With this in mind, the stock clearly shows signs of huge upside potential.
2. Denison Mines Corp. (NYSEAMERICAN:DNN)
Upside Potential: 223%
Market Capitalization: $1.205 billion
Denison Mines Corp. (NYSEAMERICAN:DNN) is a leading uranium exploration and development company with interests in the Athabasca Basin, Wheeler River, Midwest Project, McClean Lake, and Waterbury Lake. Founded in 1997, this Canada-based company is committed to large-scale uranium projects through rigorous technical evaluations and innovative approaches to mining. The company not only meets the technological demands of complex mining projects but also satisfies the community and environmental concerns regarding modern resource development.
When considering Denison Mines Corp. (NYSEAMERICAN:DNN), one can never overlook the Wheeler Project. This flagship project, with production expected to begin by late 2027, will allow the company to capitalize on the higher forecasted uranium prices and diversify its revenue stream. This small-cap company has worked extensively towards technically derisking the project while maintaining a strong financial position.
What attracts us the most to Denison Mines Corp. (NYSEAMERICAN:DNN) is its Phoenix Project. This initiative, aiming to build and operate the upcoming large-scale uranium mine in northern Saskatchewan, is going to be a pioneer of uranium ISR mining operations in the Athabasca Basin region. The Financial and Operational Results for 2024 highlighted significant progress of the venture, with construction planned for early 2026 and production targeted for the first half of 2028. While we won’t be seeing returns in the short term, the long haul for the project looks quite promising.
Another factor that we can’t ignore is the overall uranium industry. The uranium market is well-positioned for high growth due to a demand surge from nuclear energy and constrained supply within the market. With a global trend towards cleaner energy, the demand is anticipated to rise by as high as 60% by 2040.
On that note, Denison Mines Corp. (NYSEAMERICAN:DNN), with a potential upside of over 200%, has a sound standing in what could be a bull case over the next few years.
1. Aura Biosciences, Inc. (NASDAQ:AURA)
Upside Potential: 244%
Market Capitalization: $349.661 million
Aura Biosciences, Inc. (NASDAQ:AURA) is a Massachusetts-based clinical-stage biotechnology company that develops precision immunotherapies to treat various types of solid tumors designed to fight cancer by protecting the functions of organs. The primary offering of the company, bel-ser, is in the last stage of clinical development for the treatment of people living with choroidal melanoma. This small-cap company fully leverages its vision to treat cancer through a modified approach.
At the recent investor event, the management shared details on their bladder program, which has the potential to apply to a range of cancers. The company has also initiated a Phase 2 clinical trial in metastases to the choroid, a condition affecting around 20,000 people annually in the United States and Europe, with no approved treatments. The financial results support Aura Biosciences, Inc. (NASDAQ:AURA)’s plans to tap the untapped, with Research and Development costs up by nearly 12%, from $65.2 million to $73.3 million, for the year ended December 31, 2024.
The latest earnings report of Aura Biosciences, Inc. (NASDAQ:AURA) also posted $151.1 million in cash and marketable securities for the previous year, adequate to support operations into the second half of 2026. The company is highly optimistic regarding the potential of its top tier, Bel-Sar, to redefine treatment paradigms across major cancer types.
Just a few days ago, H.C. Wainwright raised the price target for Aura Biosciences, Inc. (NASDAQ:AURA) to $25 from $22 while holding onto the buy rating. The financial institution also expects the company to report sales of $33 million during the launch year, with forecasts as high as $680 million by 2030 if it can commercialize the treatment for primary choroidal melanoma in 2027. Capitalizing on the development plans it has for the future, this small-cap company has a huge upside potential of around 244%.
Overall, AURA ranks first on our list of the stocks with the biggest upside. While we acknowledge the potential of small cap stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AURA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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