Dear Reader,

This small AI company is still flying under the radar, despite having technology that industry giants desperately need.

It's a startup that solves THE biggest issue facing the AI chip industry.

Its products are essential for unleashing the full potential of next-gen AI chips from Nvidia and others.

Tech titans Microsoft, Google, Oracle and Amazon are racing to get their hands on this company's game-changing innovation.

And yet, there's probably not a 1-in-1,000 chance you've heard this company's name. But that could change very soon.

A major announcement is expected that could send revenue surging 4,735% in the next 12 months...

[Get the full story on this overlooked AI company]

Good investing,

Rachel Gearhart
Publisher, The Oxford Club

Just For You

5 Small-Cap Stocks With Impressive Growth and Upside Potential

Written by Ryan Hasson. Published 11/17/2025.

Key Points

These five small-cap stocks are exhibiting strong earnings momentum, demonstrating resilience across various sectors.
Many trade at attractive valuations, offering potential upside for investors willing to embrace measured risk.
Spanning sectors such as fintech, AI, B2B e-commerce, and healthcare, each company is well-positioned to benefit from expanding markets and strategic momentum.

Small-cap stocks, loosely defined as companies with market capitalizations up to a few billion dollars, occupy a unique and often underappreciated corner of the market. They don't usually command headlines, and many carry higher volatility than their large-cap counterparts. Some small-caps suit only short-term traders because of elevated risk, inconsistent fundamentals, or reliance on single catalysts.

Others, however, represent real businesses with expanding revenue, improving profitability, and strategic long-term vision. These companies often resemble what dominant industry leaders looked like at earlier stages of growth. For investors willing to accept some risk, this segment can offer the potential for outsized returns.

Punch these codes into your ordinary brokerage account (Ad)

If your retirement strategy involves "picking the right stocks," you're one crash away from disaster…

A hedge fund legend who made $95 million in profits during a crash has a different way.

He's using 18-digit codes to "skim" the market without buying stocks.

And his followers have seen an 84%-win rate.

Click here to see how he does it

Here are five small-cap stocks showing impressive momentum, strengthening fundamentals, and compelling upside potential.

DLocal: Fintech Capitalizing on Emerging Markets

Uruguay-based fintech DLocal (NASDAQ: DLO) has been one of the more resilient small-cap growth stories of 2025. The stock is up about 27% year-to-date (YTD) as of Friday's close and remains above the important $13 support zone. With a forward price-to-earnings ratio (P/E) of 16.04, DLO is starting to look attractively valued.

DLocal reported another strong quarter last week. Q3 revenue climbed to $282.5 million, up 52% year-over-year (YOY) and ahead of expectations, while earnings per share (EPS) of $0.17 topped estimates.

Total payment volume (TPV) surged to a record $10.4 billion, marking the fourth straight quarter of more than 50% growth. Net income nearly doubled, rising 93% YOY, and adjusted free cash flow came in at $37.6 million, up 28%.

During the earnings call, CEO Pedro Arnt emphasized that the company's diversified payments model remains resilient despite regional headwinds.

Despite a decline in the net take rate to 0.99%—mainly due to softness in Egypt—Latin America, Asia and other regions remained robust.

The slight pullback may present an opportunity rather than a warning sign. The long-term growth story remains intact, and the stock's valuation is increasingly compelling. Analysts maintain a Moderate Buy rating, and with shares near the $13 support level, DLO stands out as a high-growth small-cap for investors with a longer horizon.

Dave Inc: A High-Growth Fintech Powering Financial Inclusion

Dave Inc. (NASDAQ: DAVE), the Los Angeles-based fintech behind the popular Dave app, has quietly become one of the strongest-performing small-caps of 2025. The stock is up roughly 136% YTD, driven by sustained execution and rising confidence in its consumer-focused financial platform.

Dave's mission is to provide affordable, transparent financial tools for underserved consumers often overlooked by traditional banks.

The app's subscription model helps users avoid overdraft fees, budget more effectively, and access short-term cash when needed.

Momentum accelerated after the company reported blowout Q3 earnings on Nov. 4. EPS of $4.24 crushed expectations of $2.29, while revenue of $150.8 million grew 63% YOY.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) soared 137%, reflecting improving operational efficiency as the customer base expands. Management raised full-year revenue guidance to $544–$547 million and highlighted continued improvements in its Cache AI underwriting platform.

Technically, the stock is holding support between $180 and $200, and with a forward P/E of 18.1, Dave remains reasonably valued even after its meteoric rise.

GigaCloud Technology: A Supply Chain Cloud Leader Scaling Globally

GigaCloud Technology (NASDAQ: GCT), a China-based cloud and logistics platform with a market cap near $1.1 billion, has been another standout small-cap performer. The stock is up about 64% YTD, powered by consistent earnings beats and growing recognition of its end-to-end supply chain platform for cross-border B2B e-commerce.

The company delivered a strong earnings beat on Nov. 6 with Q3 EPS of $0.99, topping expectations by $0.34, and revenue of $332.6 million.

Revenue grew 9.7% YOY, reinforcing ongoing demand for its platform, particularly among large furniture and bulky-goods exporters.

Even after its surge, GCT remains inexpensive, trading at a P/E of 9.14. From a technical perspective, the stock is consolidating in a multi-month range, and a breakout above $34 could fuel the next leg higher.

Pagaya Technologies: AI Underwriting Transforming Consumer Credit

Pagaya Technologies (NASDAQ: PGY), an AI-driven fintech with a market cap around $1.8 billion, enjoyed a remarkable run this year. Although the stock is down about 46% from its recent 52-week high, shares are up roughly 157% YTD thanks to accelerating partner adoption and continued earnings strength.

Pagaya uses AI to enhance consumer credit underwriting for banks and financial institutions, enabling better loan performance and portfolio optimization. Its platform leverages vast datasets to build predictive risk models across credit products.

Q3 earnings on Nov. 10 were another beat: revenue reached $350 million, adjusted EBITDA hit $107 million, and network volume climbed to $2.8 billion.

Management raised full-year revenue, EBITDA, and net income guidance, signaling confidence into 2026.

After a strong run from June to September, the stock has pulled back and is now trading near the 200-day simple moving average (SMA). With a forward P/E of 14.98 and a Moderate Buy rating, PGY may be setting up for another leg higher if it can form a higher low and confirm support between $25 and $30.

Guardian Pharmacy Services: A Scalable Leader in Long-Term Care

Guardian Pharmacy Services (NYSE: GRDN), an operator of long-term care pharmacies with a market cap near $2.0 billion, continues to establish itself as a standout small-cap healthcare name. Shares are up about 44% YTD, supported by strong earnings, breakouts on heavy volume, and growing institutional interest.

Guardian provides medication management and pharmacy solutions to more than 8,200 long-term care facilities across 38 states.

With 53 pharmacies and a growing national footprint, the company is scaling rapidly within a fragmented industry.

Q3 results reinforced the momentum. Revenue rose 20% YOY to $377 million, EPS was $0.25, and management raised full-year revenue and EBITDA guidance. The new revenue outlook of $1.43–$1.45 billion and EBITDA guidance of $104–$106 million suggest durable growth into 2026.

The stock trades at a forward P/E of 27, a slight premium that reflects confidence in the company's trajectory. Technically, the $27 to $30 range remains key support; a firm hold above the 5-day SMA would position the stock for continuation.

Why These Small-Cap Stocks Stand Out

Small-cap stocks are not without risk, but they can also be fertile ground for long-term upside. The five companies highlighted above show improving fundamentals, meaningful revenue growth, and expanding market opportunities—qualities that help separate potential long-term winners from the crowd.

In a market where volatility remains elevated and leadership continues to shift, selectively choosing high-quality small-caps with real earnings power and clear strategic direction can be an effective way to position for the years ahead.

Thank you for subscribing to TickerReport, where we work around-the-clock
to bring you the latest market-moving news.

This email is a paid advertisement from The Oxford Club, a third-party advertiser of TickerReport and MarketBeat.

Contact Us | Unsubscribe

© 2006-2025 MarketBeat Media, LLC dba TickerReport.
345 North Reid Place, Sixth Floor, Sioux Falls, S.D. 57103-7078. United States..