When a legendary investor like George Soros makes a move, Wall Street pays attention. However, most of the limelight is taken by mega-cap stocks, with no one paying heed to the many small-cap stocks that form an important part of Soros’ portfolio.
Digging out these small-cap stocks is important. In some cases, these are the mega-cap stocks of the future. In other cases, these provide amazing returns in a very short period of time. The key is to get in early. And what better way to get in early than to do it when the big guys do.
We therefore decided to compile a list of stocks in billionaire George Soros’ portfolio that have the most upside. To come up with our list of billionaire George Soros’ 10 Small-Cap stocks with huge upside potential, we first looked at his top 50 stock holdings. We then filtered out the companies to look at only the ones with a market cap below $10 billion.
After arriving at his top small-cap holdings list, we then looked at the median analyst price targets on those stocks and then ranked them by their upside potential.
10. Old National Bancorp (NASDAQ:ONB)
Old National Bancorp is a bank holding company that offers commercial and consumer banking services. It also provides residential real estate loans, home equity lines of credit, consumer loans, lease financing, commercial real estate loans, and others. According to the median analyst price target, the stock still has an upside of 34.22%.
The company reported its most recent quarter’s financial results, reporting better-than-expected performance by beating analyst estimates. It recorded a 5.5% year-over-year revenue growth for the quarter. EPS growth was also impressive, beating estimates by $0.03. However, deposits stood at $40.8 billion, almost flat for the year. Commercial loan production during the quarter was strong.
Over the past few quarters, the net interest income and net interest margin have remained relatively stable. Net interest income slightly improved from $397.9 million in the previous quarter to $400 million in the latest quarter. This improvement happened due to the lower funding costs and higher accretion.
9. NICE Ltd. (NASDAQ:NICE)
NICE Ltd. delivers cloud platforms for AI-driven digital business solutions. The company provides Enlighten, CXone, journey orchestration solutions, and smart self-service. It also offers NICE Evidencentral, X-Sight, Xceed, data intelligence solutions, and others. According to the median analyst price target, the stock still has an upside of 36.00%.
Fueled by expanding TAM in Contact Center as a Service (CCaaS) and strong AI adoption, the company’s long-term growth outlook remains promising. With cloud revenue reaching 74% of the total revenue, the shift toward cloud continues. The firm is successfully transitioning to a pure-play cloud leader from a legacy on-premise provider. Demand does not seem to be a constraint as long-term demand remains strong.
NICE reported strong earnings in the latest quarter, exceeding management’s guidance. The firm recorded a 16% YoY revenue growth, driven by a solid 24% YoY revenue growth in the cloud segment. Operating margin stood at 31.5% along with EBIT growth of 22% YoY.
Despite strong results, the management provided poor guidance for FY 2025. As per the guidance, the anticipated cloud segment growth is 12%, which is significantly lower than Q4 2024. As a result of the poor guidance, the stock fell and continues to trade near 52-week lows.
8. Exact Sciences Corporation (NASDAQ:EXAS)
Exact Sciences Corporation operates as a cancer screening and diagnostic test products provider. The company provides Cologuard, Oncotype DX Breast DCIS Score Test, OncoExTra Test for tumor profiling, Riskguard Test, Oncotype DX Breast Recurrence Score Test, and Oncotype DX Colon Recurrence Score Test. According to the median analyst price target, the stock still has an upside of 47.23%.
On April 22, the firm announced the launch of its new test, Oncodetect. This new test detects the molecular residual disease (MRD) among multiple solid tumors. According to the company, this test provides clear results, ‘detected’ or ‘not detected’, along with the quantitative data to facilitate treatment.
Brian Baranick, Executive Vice President and General Manager Precision Oncology at Exact Sciences, said:
“Exact Sciences is transforming cancer care by delivering tests that provide the clarity patients and physicians need to make confident decisions,… Advanced detection tools like the Oncodetect test help bridge that gap by providing clinical insights at critical periods, leading to more informed treatment decisions and personalized care.”
RBC Capital Markets started coverage of EXAS last month. The research firm assigned a Sector Perform rating to the stock with a price target of $52, citing growth potential in the oncology screening sector of liquid biopsy.
7. Rapid7, Inc. (NASDAQ:RPD)
Rapid7, Inc. operates as a cybersecurity services and software provider. The company offers its services under the Nexpose, Metasploit, and Rapid7 brand names. It provides Rapid7 Insight Agent, Rapid7 Insight Network Sensor, Rapid7 Cloud Event Data Harvesting, and third-party integrations and ecosystem. According to the median analyst price target, the stock still has an upside of 52.77%.
As part of the cybersecurity firm’s settlement with activist investor Jana Partners, it added three new members to its board of directors at the end of last month. The newly appointed directors are Mike Burns, Kevin Galligan, and Wael Mohamed. Rapid7 is likely to benefit from this move as Jana Partners holds a 5.8% stake in the company and is now free to make its move to transform the company.
CEO and Chairman Corey Thomas commented:
“Rapid7 is entering an exciting new chapter of growth, and we are confident that adding Wael, Mike and Kevin to our Board will accelerate our ability to execute with greater speed, focus and impact, each brings a wealth of expertise that will help us sharpen our strategy, strengthen execution and drive greater value creation for our shareholders.”
For 2025, the cybersecurity firm expects 4% to 6% growth in annual recurring revenue fueled by its Detect and Respond segment. It projects total revenue growth of 2% to 3% for the year. The company plans to invest up to $30 million in strategic initiatives, which should help drive long-term growth.
6. DigitalOcean Holdings, Inc. (NYSE:DOCN)
DigitalOcean Holdings, Inc. operates a cloud computing platform. It offers on-demand platform tools and infrastructure for developers at growing tech firms. The company also provides infrastructure-as-a-service (IaaS) solutions, platform-as-a-service (PaaS) solutions, software-as-a-service (SaaS) solutions, and IP address management and domain name system management. According to the median analyst price target, the stock still has an upside of 64.92%.
The firm’s product innovation has accelerated over the past few quarters. It increased its product launches from 42 in Q3 2024 to 49 in Q4 2024. As per the guidance, 50+ product launches are expected in the first quarter of 2025. In addition to product innovation, the company’s AI opportunity presents an impressive growth potential. It’s recently launched GenAI platform could be a game changer.
Based on DigitalOcean’s outlook in machine learning and artificial intelligence, Morgan Stanley upgraded the firm at the beginning of this year from Equal-Weight to Overweight with an increased price target of $41. Later on, Citi also initiated coverage of the stock with a Buy rating and a $45 price target.
Analyst Josh Baer mentioned:
“DigitalOcean’s larger customers are demanding more product capabilities and the company is delivering.”
Based on analysts’ optimism, DOCN’s prospects look promising.
5. Wayfair Inc. (NYSE:W)
Wayfair Inc. operates an e-commerce business. The company provides online selections of housewares, furniture, décor, and home improvement products. It sells its products under the Mercury Row and Three Posts brands. According to the median analyst price target, the stock still has an upside of 67.64%.
The online retailer recently launched a new program, Wayfair Verified. According to the company, this program is designed to simplify online shopping. It aims to reduce the uncertainty in online furniture shopping by verifying high-quality products. This initiative aims to improve customer satisfaction and confidence by highlighting approved products.
The company earned an upgrade last month by Jefferies from Hold to Buy. Analyst Jonathan Matuszewski’s target price points to a 42% potential upside from the current price level. This upgrade was based on strong growth in the housing market, mainly in the West, its new loyalty program, share gains, and the company’s solid offline and online presence.
Jefferies analyst Jonathan Matuszewski highlighted Wayfair’s growth potential by saying:
“Bottom-line, at 14.2x 2025 EBITDA, we view the medium-term growth algorithm of double-digit percentage sales growth and a path towards double-digit percentage EBITDA margins attractive.”
4. Lumentum Holdings Inc. (NASDAQ:LITE)
Lumentum Holdings Inc. is a manufacturer and seller of photonic and optical products. It operates in the Industrial Tech and Cloud & Networking segments. The company provides tunable small form-factor pluggable transceivers, high-speed transceivers, coherent dense wavelength division multiplexing pluggable transceivers, and other products. According to the median analyst price target, the stock still has an upside of 69.44%.
The investment firm Jefferies started coverage of Lumentum last month. Jefferies assigned a Buy rating to the stock, lowering its price target from $110 to $100. Analysts expect substantial growth in data centers, powered by AI’s need for faster interconnect speeds. This will boost demand for networking solutions.
The company also confirmed its target of reaching $500 million in quarterly revenue by the end of 2025, fueled by cloud and AI market trends. For Q3 2025, growth is anticipated in Cloud and Networking products. However, Industrial Tech revenue is projected to decline. Management expects Q3 revenue to be in the range of $410 million and $425 million. The firm predicts demand expansion for EML chips in 2026 and plans to extend capacity to meet high demand.
3. Marriott Vacations Worldwide Corporation (NYSE:VAC)
Marriott Vacations Worldwide Corporation is a property management company that mainly deals with vacation ownership, rental, and resort management. It generates revenues through two segments: the Vacation Ownership segment and the Exchange & Third-Party Management segment. The company’s stock has a median analyst price target that could see it gain 82.85% from current levels.
VAC has a distinct advantage that partially protects it in the event of a recession. The company targets high-net-worth individuals and has assets in strategic locations. Even though a recession will negatively impact discretionary spending, VAC’s business is unlikely to be affected as much as those peers that deal with the everyday American consumer.
Moreover, the stock has lost half its value in a year, making it undervalued with a healthy dividend yield of nearly 6%. A case could be made here that the worst of the poor macroeconomic conditions may well be priced in. If inflation stabilizes, rate cuts could be on the table again, and VAC would re-rate to the upside quickly in that case.
2. Wolfspeed, Inc. (NYSE:WOLF)
Wolfspeed is a manufacturer of equipment for the semiconductor industry, specializing in silicon carbide wafers and GaN epitaxial layers on these wafers. The GaN layer significantly improved the device performance as compared to just using traditional silicon. The stock is down 60% in a month but offers great value as the median analyst price target expects the stock to double from here on.
The reason for the stock’s recent downfall was speculation that the company may not receive any more funding under the CHIPS Act. This funding is not only crucial for the company’s capital-intensive needs but is also required to keep its balance sheet in shape.
The company’s management was quick to come up with alternate plans if the CHIPS Act funding is stopped. For instance, it received $192.1 million in tax refunds recently, which should help it with the financial requirements. The company expects to receive $600 million in FY26 in the form of tax refunds.
The company continues to look at alternative avenues of funding in case the Trump administration removes it as a CHIPS Act beneficiary:
“Wolfspeed continues to explore alternatives with regard to its convertible notes, in partnership with its advisors, and remains in a dialogue with lenders, including Apollo and Renesas.”
1. Sarepta Therapeutics, Inc. (NASDAQ:SRPT)
Sarepta Therapeutics, Inc. operates as a commercial-stage biopharmaceutical company. The company targets development and discovery of gene therapies, RNA-targeted therapeutics, and other genetic therapeutic modalities. According to the median analyst price target, the stock still has an upside of 178.20%.
At the start of this month, the firm received an upgrade from H.C. Wainwright. Analysts upgraded the biopharma stock from Sell to Neutral and maintained their price target of $75. This upgrade was based on the expectations of strong earnings in Q1 2025. Regardless of safety concerns, they expect sustained demand for the drug, mainly among non-ambulatory and older patients, which is likely to benefit the company’s Q1 2025 earnings.
“After seeing the stock price reach our target ahead of schedule, we view the current valuation as in line ahead of 1Q25 results.”
Following this optimism, Wells Fargo initiated its coverage with an Overweight rating, highlighting the promising commercial potential of Elevidys. The firm assigned a target price of $115 to the stock.
Wells Fargo’s analyst Yanan Zhu stated:
“Elevidys remains the best option for most young DMD patients, and its commercial opportunity remains largely intact.”
While we acknowledge the potential of SRPT 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. 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 SRPT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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