We recently compiled a list of the 10 Hottest Smid-Cap Stocks So Far In 2025. In this article, we are going to take a look at where ThredUp Inc. (NASDAQ:TDUP) stands against the other smid-cap stocks.
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.
A satisfied customer leaving an online resale store with an armload of purchases.
ThredUp Inc. (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”
Overall TDUP ranks 8th on our list of the hottest smid-cap stocks so far in 2025. While we acknowledge the potential of TDUP 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 TDUP 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.
