8 Small-Cap Stocks Surging Like Rockets After Game-Changing News
Small-cap stocks can be volatile, but the right catalyst can send them soaring. This week's biggest movers include biotech companies achieving clinical milestones, tech firms innovating in AI and quantum computing, and businesses securing major financial deals.
Small-cap stocks often deliver some of the most explosive gains when game-changing news hits the market. Investors searching for high-upside opportunities should pay attention to this week’s biggest winners. From biotech breakthroughs to AI and quantum computing advancements, these eight small-cap stocks are surging on strong catalysts. Stocks on this list, all under a $5 billion market cap, have posted impressive weekly gains driven by clinical trial wins, major partnerships, strategic acquisitions, and financial deals. Let’s break down what’s fueling their momentum and why investors are taking notice.
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8. PepGen (PEPG)
- Market Cap as of February 27: $74.87 Million
- Weekly Performance as of February 27: 57.99%
PepGen (NASDAQ: PEPG) is a biotechnology company developing transformative therapies for neuromuscular and neurodegenerative diseases. Their Enhanced Delivery Oligonucleotide platform aims to effectively deliver therapeutics to muscle tissues, benefiting patients with unmet medical needs.
Positive Clinical Trial Results: PepGen’s stock surged after the company announced promising initial clinical data from its ongoing Phase 1 FREEDOM-DM1 trial for myotonic dystrophy type 1. The study also showed significant dose-dependent splicing correction.
Validation of EDO Technology: The results validate the company’s EDO technology’s ability to deliver therapeutic oligonucleotides, a significant milestone for the company.
Favorable Safety Data: The safety data were primarily mild to moderate adverse events, with only one serious adverse event reported, which may have been influenced by an off-label drug.
Future Development Plans: The company plans to advance PGN-EDODM1 into multiple-dose studies, which suggests a positive outlook for the future of the treatment.
The company’s plans to advance PGN-EDODM1 into multiple-dose studies further reinforce the positive outlook for the future of the treatment, making the stock an attractive investment opportunity.
7. ReTo Eco-Solutions (RETO)
- Market Cap as of February 27: $13.47 Million
- Weekly Performance as of February 27: 61.49%
ReTo Eco-Solutions (NASDAQ: RETO) provides eco-friendly construction materials and solutions. The company focuses on sustainable building products and environmental protection services, catering to clients in the construction and infrastructure sectors.
Ambitious Expansion Plans: ReTo Eco-Solutions has unveiled bold plans to enhance its eco-friendly construction materials, which has sparked widespread optimism among investors about the company’s future prospects.
Groundbreaking Partnership: The company recently announced a contract win with a client in the United Arab Emirates, valued at approximately $2 million.
Insider Confidence: Increased insider buying activity suggests that company insiders are bullish about ReTo Eco-Solutions’ future performance, which is a powerful endorsement of the company’s potential.
Undervaluation: The stock’s low price-to-book ratio and 52-week low price may have made it an attractive buy for investors who recognize its inherent value and growth potential.
ReTo Eco-Solutions is an exciting opportunity for investors looking for a company with tremendous growth potential. As the company continues to execute its vision, we’ll likely see even more impressive gains.
6. Enveric Biosciences (ENVB)
- Market Cap as of February 27: $4.35 Million
- Weekly Performance as of February 27: 64.23%
Enveric Biosciences (NASDAQ: ENVB) is dedicated to developing novel small-molecule therapeutics for the treatment of anxiety, depression, and addiction disorders. Their research combines medicinal chemistry and psychedelic-inspired compounds to address unmet mental health needs.
Promising Developments In Psychedelic Drug Research: Enveric’s research on psychedelic drugs, particularly its mescaline derivative compounds (EVM401 Series), has shown potential in addressing addiction and neuropsychiatric disorders.
Securing of US Patent for EVM401 Series: The company’s recent securing of a US patent for its EVM401 Series has further boosted investor confidence, providing a competitive edge and protection for its innovative research.
Notice of Allowance for EB-003: The company recently received a Notice of Allowance from the US Patent and Trademark Office for its promising drug EB-003, which targets mental health issues without causing hallucinations.
Licensing Agreements With Restoration Biologics: The company’s additional licensing agreements with Restoration Biologics, which focuses on cannabinoid-COX-2 compounds, have potential future payments totaling $82 million.
Strategic Partnerships And Innovations: Enveric Biosciences’ strategic decisions and innovations, such as its pioneering unique therapeutics and acquisition of pivotal patents, have propelled the company into the spotlight, presenting a potential for growth and triggering cautious optimism among investors.
Successful Public Offering: The company’s recent public offering has raised about $5 million and has provided a capital injection to boost the development of neuroplastogenic therapeutics.
These developments have collectively contributed to a significant surge in the company’s stock price. However, the market’s reaction to these updates reflects a mix of excitement and caution in the biotech sector.
5. GDEV (GDEV)
- Market Cap as of February 27: $366.65 Million
- Weekly Performance as of February 27: 87.31%
GDEV (NASDAQ: GDEV) is a global game development company known for creating and publishing interactive entertainment content. They serve a worldwide audience, delivering gaming experiences across various platforms.
Special Dividend Announcement: The company announced a one-time special cash dividend of $3.31 per share totaling $60 million, which will be distributed to shareholders on March 11, 2025. This dividend is a significant event in GDEV’s public history and has driven investor confidence in the company’s financial health and prospects.
Strong Financial Performance: GDEV has demonstrated robust financial health, with a 66.3% gross profit margin, and holds more cash than debt on its balance sheet.
Positive Earnings Estimate Revisions: Analysts have raised their estimates for the current year and next year by 300% to $0.60 and 126.7% to $1.36 per share, respectively, over the past 60 days. This upward revision in earnings expectations reflects the positive sentiment around GDEV and has driven investor confidence.
Strategic Focus on Operational Efficiency and Sustainable Growth: GDEV is committed to improving business efficiency, prioritizing product development, and refining user acquisition strategies that have resonated with the market.
Leadership And Governance: The appointment of CEO Andrey Fadeev as the new Chairperson of the Board is intended to enhance the synergy between the company’s strategic management and operational activities.
The dividend announcement, along with other factors, has driven investor confidence in GDEV’s financial health and prospects, leading to a significant surge in the company’s stock price. Investors have become increasingly confident in the company’s financial health, strategic vision, and growth prospects.
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4. B. Riley Financial (RILY)
- Market Cap as of February 27: $179.02 Million
- Weekly Performance as of February 27: 91.23%
B. Riley Financial (NASDAQ: RILY) provides a diverse range of financial services, including investment banking, brokerage, asset management, and financial consulting. They cater to public and private companies, institutional investors, and high-net-worth clients.
New Debt Financing Deal: The company secured a $160 million debt financing deal with Oaktree, which provides financial flexibility and allows B. Riley to retire its previous debt under the Nomura Senior Secured Credit Agreement.
Return To Nasdaq Compliance: B. Riley has regained compliance with Nasdaq’s listing requirements, ensuring the timely filing of periodic reports with the SEC, which has boosted investor confidence.
Investment in Joann Liquidation: The company’s 44% ownership in GA Group, which has been appointed as the exclusive agent to monetize JOANN’s assets, presents a significant opportunity for potential upside.
Financial Restructuring: The new debt facility comes with a relatively favorable interest rate, and the issuance of warrants to Oaktree for the purchase of common shares at a premium suggests a positive outlook for the company’s future performance.
Overall, the combination of these factors and growing optimism among investors has led to a surge in B. Riley Financial’s stock and potential for future growth.
3. Organovo Holdings (ONVO)
- Market Cap as of February 27: $13.12 Million
- Weekly Performance as of February 27: 98.23%
Organovo Holdings (NASDAQ: ONVO) is a biotechnology company specializing in 3D bioprinting technology. The company designs and develops functional, three-dimensional human tissues for medical research and therapeutic applications by enabling the fabrication of living tissues composed of mammalian cells, which are used to accelerate preclinical drug testing and discovery.
Breakthrough in 3D Bioprinting Technology: Organovo has reported a significant breakthrough in drug development, tissue engineering, and regenerative medicine using its 3D bioprinting technology, which has sparked investor interest and confidence. This innovative technology has the potential to revolutionize medical and commercial applications.
Strategic Partnerships: Organovo has entered into strategic collaborations with leading pharmaceutical firms to enhance its research capabilities and drive future growth. Organovo has also announced that Eli Lilly will acquire its FXR program, including lead asset FXR314, aimed at treating inflammatory bowel disease.
Positive Feedback on Prototype: The company has received positive feedback on a recent prototype, indicating feasible commercial viability and leading to heightened trading activity.
Announcement Of A Major New Partnership: The company has announced a major new partnership in the field of 3D bioprinting. This partnership is expected to drive growth and increase the company’s market position.
Overall, the combination of these factors has led to a significant increase in investor confidence, driving up the stock price of Organovo.
2. Santech Holdings (STEC)
- Market Cap as of February 27: $39.49 Million
- Weekly Performance as of February 27: 149.07%
Santech Holdings (NASDAQ: STEC), formerly Hywin Holdings, is a consumer-focused technology company based in China. The company has transitioned from its historical financial services and health management businesses to explore innovative opportunities in technology sectors, including new retail, social e-commerce, and the metaverse.
New AI-Driven Product Lineup: Santech recently announced an impressive new AI-driven product lineup, which has captured investor interest and suggests a potential for future growth and expansion.
Nasdaq Extension: The Nasdaq’s decision to grant an extension to Santech for its annual report filing has eased immediate pressures on financial disclosures, signals trust in the company, and catalyzes investor confidence.
Impressive Revenue Growth: The company recently reported a significant increase in revenue, reaching over $2 billion, which indicates strong market demand and strategic business moves paying off.
Undervaluation: Analysts note a price-to-earnings ratio of just over 2, suggesting STEC stock could be potentially undervalued compared to industry peers, making it an attractive investment opportunity.
Balanced Financial Strategy: The company’s financial metrics, such as a leverage ratio of 2.1 and a long-term debt-to-capital metric of 0.08, reveal a balanced approach to investments and risk-taking. The company holds nearly $900M in cash reserves.
These factors have combined to drive up the stock price. As the company navigates the upcoming months, investors will be watching closely to see if these newfound heights are sustainable and if Santech Holdings can continue to deliver on its growth potential.
1. MicroAlgo (MLGO)
- Market Cap as of February 27: $43.88 Million
- Weekly Performance as of February 27: 283.48%
MicroAlgo (NASDAQ: MLGO) is a technology company specializing in developing and applying advanced algorithm solutions that enhance data processing capabilities across various industries. The company’s clients include businesses seeking to optimize operations through improved data analysis and processing technologies.
Breakthrough In Quantum Algorithm Technology: MicroAlgo recently announced the successful development of a groundbreaking quantum algorithm technology, specifically a FULL adder operation based on CPU registers in quantum gate computers.
Potential for Practical Applications: The company’s quantum algorithm technology has broad application prospects, particularly in large-scale data processing, encryption and decryption, and optimization problems.
Development of Hybrid Algorithm: MicroAlgo also announced the development of an innovative hybrid algorithm combining classical and quantum computing advantages to optimize Multi-Query Optimization (MQO) problems.
MicroAlgo’s continuous technological advancements and research investments are expected to lead the development of quantum computing, positioning it for future growth and expansion. As quantum computing technology advances and becomes more practical, the demand for MicroAlgo’s innovative solutions will likely increase, driving up the stock price.
Conclusion
These small-cap stocks are surging, but the real question is: Can they sustain the momentum? While high volatility is expected, these companies are now on the market’s radar due to their breakthrough innovations, financial deals, and strategic moves. Investors should watch for follow-up developments, as further progress, whether in clinical trials, revenue growth, or technology adoption, could drive even more upside. However, as with any fast-moving stock, pullbacks and fluctuations are likely. For those willing to embrace the risk, these stocks could offer exciting opportunities in the weeks ahead.
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
