Zacks Small Cap Research 2024 Initiations and Best Ideas for 2025

Zacks Small Cap Research was hard at work in 2024 initiating analyst coverage on 40 companies. Each of our initiation reports provides a valuation, investment thesis and financial forecast model that comes from our 11 experienced analysts’ expertise and due diligence. Our work has generated investment ideas in health care, consumer electronics, finance technologies, transportation, AI-based products, and oil and gas production among other industries.

The last year has been one fraught with risks, critical elections around the globe and multiple ongoing military conflicts among other material events. Despite this, index performance as measured by the S&P was positive in 2024, with large caps outperforming mid-caps and mid-caps surpassing small caps. Much of the strong performance was driven by tech stocks and the Magnificent Seven while other areas lagged.

However, at Zacks SCR, we see a lot of opportunity in the smaller cap names. As we look forward to 2025, Zacks Chief Equity Strategist John Blank expects industrials and technology to continue their run and is recommending names in the transportation, insurance and utilities spaces. We list some of our best ideas in smaller end of the equity universe below:

• Ligand Pharmaceuticals (NASDAQ:LGND) is a royalty aggregator which has a large opportunity set of biopharma names where it can deploy its capital for future growth.
• MetaVia Inc. (NASDAQ:MTVA; previously NRBO) has two development assets in the metabolic space which could ride the tidal wave in the obesity driven by GLP-1 agonist success.
• Telomir Pharmaceuticals (NASDAQ:TELO) represents another area of interest in longevity. It is developing a technology to address a variety of aging related disease.
• In the natural resources industry, Goliath Resources (OTC:GOTRF) boasts an attractive land position and a large portfolio of future projects in gold and other metals extraction.
• Clip Money (OTC:CLPMF), a fast-growing startup that provides inexpensive and convenient cash management services to small businesses.
• Transportation is another attractive area represented by Titan International (NYSE:TWI). It is a global vehicle equipment manufacturer that targets the agriculture and construction markets manufacturing OEM-spec replacement products.
• Another transportation derivative is Consumer Portfolio Services (NASDAQ:CPSS), which purchases and services auto loans. Its use of technology builds upon an improving backdrop of origination volumes.
• For those looking to take advantage of China’s continued modernization and expanding middle class, Viomi Technology (NASDAQ:VIOT) offers home water purification in a region increasingly demanding higher water safety.

Zacks SCR offers a number of compelling ideas that may be appropriate for your portfolio in 2025. From health care to manufacturing and consumer to technology, we have several small cap ideas that leverage the most important investment themes of the coming year. View the full list of Zacks SCR’s initiation reports by analyst below.

Zacks SCR Analysts | Research Reports

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