11 Most Promising Small-Cap Stocks According to Analysts

9. Rapid7 Inc. (NASDAQ:RPD)

Market Capitalization as of April 23: $1.51 billion

Number of Hedge Fund Holders: 45

Average Upside Potential as of April 23: 48.68%

Rapid7 Inc. (NASDAQ:RPD) provides cybersecurity software and services under the Rapid7, Nexpose, and Metasploit brand names. It offers Rapid7 Insight Agent, Rapid7 Insight Network Sensor, Rapid7 Cloud Event Data Harvesting, and third-party integrations and ecosystem, as well as orchestration and automation solutions.

On February 13, DA Davidson lowered the price target on Rapid7 to $35 from $39, while keeping a Neutral rating. This followed the company’s recent quarterly financial reports. Rapid7 made $844 million in revenue for the full year 2024, which was a 9% increase year-over-year. This was driven by $809 million in product subscription revenue. Rapid7’s Detection and Response (D&R) business achieved double-digit growth and ended the year with over $400 million in ARR.

Within the D&R segment, Managed D&R accounts for over 75% of the total D&R ARR and is growing at a mid-teens rate. For 2025, Rapid7 Inc. (NASDAQ:RPD) anticipates the overall ARR growth to be between 4% and 6%, which will result in an expected ending ARR of $870 to $890 million. The company’s AI-driven MDR offering is a key differentiator and contributes to its leadership position in the market.