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Best Small-Cap Stocks to Buy Now for November 2025

Kevin Voigt Updated on November 4, 2025

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Small-cap stocks can add torque to a diversified portfolio — if you can stomach bumps along the way. They’ve lagged for much of the past cycle and trade at a notable discount to large caps, offering upside potential as earnings inflect and economic conditions evolve.

These companies, typically $300 million to $2 billion in market value, aren’t household names, but often have more runway to capture share, expand margin, and surprise on earnings.

The trade-off is real. Smaller companies typically face greater volatility, thinner liquidity and less financial flexibility, leaving them more sensitive to macro headwinds. Careful selection matters, emphasizing durable business models, improving fundamentals and credible capital discipline.

Historically, periods of stabilizing inflation and easing financial conditions have aided small caps by lowering financing costs and boosting risk appetite. We target companies showing positive estimate revisions and healthy Style Scores — signs that earnings outlook and sentiment are turning. Here are our top small-cap picks:

5 Best Small-Cap Stocks to Buy Today

Company (Ticker)	12 Week Price Change	Forward PE	Price	Proj EPS Growth (1 Year)	Projected Sales Growth (1Y)
Enerflex Ltd. (EFXT)	41.55%	10.76	$12.61	997.00%	-1.28%
Aveanna Healthcare (AVAH)	37.78%	21.51	$9.31	629.17%	14.24%
AMark Precious Metals (AMRK)	20.26%	7.68	$24.73	58.06%	-3.08%
Zumiez (ZUMZ)	52.72%	51.52	$21.17	566.67%	3.13%
TaskUs (TASK)	-26.14%	8.38	$12.63	16.53%	17.84%

*Updated on November 4, 2025.

Enerflex Ltd. (EFXT)

$12.61 USD -0.37 (-2.85%)

3-Year Stock Price Performance

Premium Research for EFXT

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.93% 2 Buy 18.16% 3 Hold 10.10% 4 Sell 5.63% 5 Strong Sell 2.84% S&P 500 11.45% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.93%
2	Buy	18.16%
3	Hold	10.10%
4	Sell	5.63%
5	Strong Sell	2.84%
S&P	500	11.45%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 40% (96 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Bottom 19% (13 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

B Value B Growth D Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap:$1.54B
Projected EPS Growth:1,000.00%
Last Quarter EPS Growth: 157.89%
Last EPS Surprise: 600.00%
Next EPS Report date:Nov. 6, 2025

Our Take:

Enerflex is an integrated energy‐infrastructure and compression services provider with a $1.54 billion market cap. Its Zacks Rank #1 (Strong Buy) reflects positive estimate revisions, while Style Scores of A for Value and B for Growth point to attractive valuation with improving fundamentals, while a Momentum score of C highlights volatility. Management has focused on deleveraging after the Exterran merger, repaying hundreds of millions of debt and reducing leverage, aided by recurring cash flows from Energy Infrastructure and After-Market Services.

Strategically, Enerflex’s highly utilized U.S. contract compression fleet and long-term infrastructure contracts underpin visibility and help fund continued balance-sheet repair. Backlog and multi-year contracted revenues in Energy Infrastructure support a steadier earnings base, while After-Market Services adds counter-cyclical stability.

On the Price, Consensus & EPS Surprise chart, 2026–27 consensus lines have turned higher following last year’s reset, and the stock has begun to recover alongside that improvement, which is consistent with the Rank’s signal that revision momentum is strengthening.

Aveanna Healthcare (AVAH)

$9.31 USD -0.10 (-1.06%)

3-Year Stock Price Performance

Premium Research for AVAH

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.93% 2 Buy 18.16% 3 Hold 10.10% 4 Sell 5.63% 5 Strong Sell 2.84% S&P 500 11.45% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.93%
2	Buy	18.16%
3	Hold	10.10%
4	Sell	5.63%
5	Strong Sell	2.84%
S&P	500	11.45%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 17% (42 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 31% (5 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

C Value A Growth F Momentum B VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap: $1.89B
Projected EPS Growth: 633.33%
Last Quarter EPS Growth:128.57%
Last EPS Surprise:350.00%
Next EPS Report date: Nov. 6, 2025

Our Take:

Aveanna is a home-care platform focused on private-duty nursing, home health, and hospice, serving medically complex patients, with a $1.89 billion market cap. Its Zacks Rank #1 reflects estimate momentum, with a Style Score of A for Growth offsetting a score of C for Value and D for Momentum, consistent with a still-evolving turnaround.

Management’s “preferred payer” strategy and push for adequate state/federal rates have improved mix and margin trajectory, with multiple payer wins and momentum into 2025. Recent updates point to higher revenue and EBITDA as Aveanna tightens cost control and prioritizes adequate rates across states, which is key in a labor-constrained industry.

On the chart, a long base is forming as the 2027 consensus appears and trends higher from 2024 lows. That nascent uptrend in estimates, tied to payer contracting and rate progress, underpins the Rank even as labor and reimbursement risks merit ongoing attention.

AMark Precious Metals (AMRK)

$24.73 USD -1.62 (-6.15%)

3-Year Stock Price Performance

Premium Research for AMRK

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.93% 2 Buy 18.16% 3 Hold 10.10% 4 Sell 5.63% 5 Strong Sell 2.84% S&P 500 11.45% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.93%
2	Buy	18.16%
3	Hold	10.10%
4	Sell	5.63%
5	Strong Sell	2.84%
S&P	500	11.45%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 1% (1 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Bottom 44% (9 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value A Growth F Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap: $655.05M
Projected EPS Growth: 58.06%
Last Quarter EPS Growth:216.67%
Last EPS Surprise:33.33%
Next EPS Report date:Nov. 6, 2025

Our Take:

A-Mark is a fully integrated precious-metals platform spanning wholesale trading, secured lending, and direct-to-consumer (DTC) via JM Bullion and Goldline. Its market cap is $655 million. A Zacks Rank #1 with Style Scores of A for both Value and Growth, but a weak Momentum score of F suggests estimates are rising while the stock remains attractively priced.

The company’s multi-channel model ties spreads and volumes to bullion demand while DTC and financing widen margins and customer reach, providing diversification across cycles. Recent filings emphasize the three complementary segments and broad customer base, reinforcing the platform’s durability when gold and silver interest spikes.

On the chart, the stock’s sharp rebound coincides with step-ups in 2026–2027 EPS lines, reflecting an improving mix and supportive metals backdrops. That estimate momentum backs the Rank, while valuation support tempers commodity-driven swings.

Zumiez (ZUMZ)

$21.17 USD -0.47 (-2.17%)

3-Year Stock Price Performance

Premium Research for ZUMZ

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.93% 2 Buy 18.16% 3 Hold 10.10% 4 Sell 5.63% 5 Strong Sell 2.84% S&P 500 11.45% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.93%
2	Buy	18.16%
3	Hold	10.10%
4	Sell	5.63%
5	Strong Sell	2.84%
S&P	500	11.45%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 15% (36 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Bottom 25% (12 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

B Value B Growth D Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap:$371.37M
Projected EPS Growth: 566.67%
Last Quarter EPS Growth: 92.41%
Last EPS Surprise: 45.45%
Next EPS Report date:Dec. 4, 2025

Our Take:

Zumiez is a specialty youth retailer operating more than 700 stores across the U.S., Canada, Europe, and Australia, with a $371 million market cap. A Zacks Rank #1 signals positive estimate revisions, and Style Scores of B for both Value and Growth suggest improving fundamentals at a reasonable price, though a score of D for Momentum reflects unevenness.

Operationally, the company’s turnaround is showing through better comps, expanding gross margin, and a return to profitability as inventory and promotions normalize. Encouragingly, early third-quarter sales trends point to continued momentum. Management’s commitment to shareholder value through ongoing buybacks underscores confidence in Zumiez’s strategic direction and long-term growth potential across its global retail and e-commerce platforms.

On the chart, shares have climbed alongside rising 2026–2027 consensus lines after a multi-year trough. The alignment of improving estimates with better comp trends supports the Rank, while balanced Style Scores indicate room for continued operating execution to drive further upside.

TaskUs (TASK)

$12.63 USD +0.03 (0.24%)

3-Year Stock Price Performance

Premium Research for TASK

Zacks Rank This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below. Zacks Rank Definition Annualized Return 1 Strong Buy 23.93% 2 Buy 18.16% 3 Hold 10.10% 4 Sell 5.63% 5 Strong Sell 2.84% S&P 500 11.45% Zacks Rank Education - Learn about the Zacks Rank Zacks Rank Home - Zacks Rank resources in one place Zacks Premium - The only way to fully access the Zacks Rank: Strong Buy 1

Zacks Rank	Definition	Annualized Return
1	Strong Buy	23.93%
2	Buy	18.16%
3	Hold	10.10%
4	Sell	5.63%
5	Strong Sell	2.84%
S&P	500	11.45%

Zacks Industry Rank The Zacks Industry Rank assigns a rating to each of the 265 X (Expanded) Industries based on their average Zacks Rank. An industry with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. The industry with the best average Zacks Rank would be considered the top industry (1 out of 265), which would place it in the top 1% of Zacks Ranked Industries. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Industry Rank Education -- Learn more about the Zacks Industry Rank: Top 28% (67 out of 243)

Zacks Sector Rank The Zacks Sector Rank assigns a rating to each of the 16 Sectors based on their average Zacks Rank. A sector with a larger percentage of Zacks Rank #1's and #2's will have a better average Zacks Rank than one with a larger percentage of Zacks Rank #4's and #5's. Zacks Sector Rank Education - Learn more about the Zacks Sector Rank The sector with the best average Zacks Rank would be considered the top sector (1 out of 16), which would place it in the top 1% of Zacks Ranked Sectors. The sector with the worst average Zacks Rank (16 out of 16) would place in the bottom 1%. Zacks Rank Education -- Learn more about the Zacks Rank Zacks Sector Rank Education -- Learn more about the Zacks Sector Rank: Top 19% (3 out of 16)

Style Scores

The Style Scores are a complementary set of indicators to use alongside the Zacks Rank. It allows the user to better focus on the stocks that are the best fit for his or her personal trading style.

The scores are based on the trading styles of Value, Growth, and Momentum. There's also a VGM Score ('V' for Value, 'G' for Growth and 'M' for Momentum), which combines the weighted average of the individual style scores into one score.

Value Score A

Growth Score A

Momentum Score A

VGM Score A

Within each Score, stocks are graded into five groups: A, B, C, D and F. As you might remember from your school days, an A, is better than a B; a B is better than a C; a C is better than a D; and a D is better than an F.

As an investor, you want to buy stocks with the highest probability of success. That means you want to buy stocks with a Zacks Rank #1 or #2, Strong Buy or Buy, which also has a Score of an A or a B in your personal trading style.

Zacks Style Scores Education - Learn more about the Zacks Style Scores

A Value C Growth C Momentum A VGM

Earnings ESP Zacks Earnings ESP (Expected Surprise Prediction) looks to find companies that have recently seen positive earnings estimate revision activity. The idea is that more recent information is, generally speaking, more accurate and can be a better predictor of the future, which can give investors an advantage in earnings season. The technique has proven to be very useful for finding positive surprises. In fact, when combining a Zacks Rank #3 or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time, while they also saw 28.3% annual returns on average, according to our 10 year backtest. Visit the Earnings ESP Center See the Full List of Stocks To Beat Earnings: 0.00%

Market Cap:$1.20B
Projected EPS Growth:16.28%
Last Quarter EPS Growth: 24.14%
Last EPS Surprise: 26.47%
Next EPS Report date: Nov. 7, 2025

Our Take:

TaskUs provides outsourced digital services and next-gen customer experience for tech and consumer brands, with a $1.20 billion market cap. Its Zacks Rank #1 captures improving estimates, while Style Scores of A for Value and C for both Growth and Momentum, reflect a still-early recovery with reasonable valuation.

Recent results showed double-digit quarterly revenue growth and solid adjusted profitability. Growth was broad-based across service lines, including strong demand in AI services and trust & safety operations. Execution on cost discipline alongside targeted AI investments positions TaskUs to participate in digital-customer-experience demand as clients automate and re-platform service operations.

On the chart, the stock’s rebound aligns with firmer 2026–2027 consensus lines after a trough, indicating better demand visibility. That trend, paired with an improving mix toward AI and trust & safety, supports the Rank while leaving execution on diversification as a key watch item.

Methodology

The Zacks Rank is a proprietary stock-rating model that uses trends in earnings estimate revisions and earnings-per-share (EPS) surprises to classify stocks into five groups: #1 (Strong Buy), #2 (Buy), #3 (Hold), #4 (Sell) and #5 (Strong Sell). The Zacks Rank is calculated through four primary factors related to earnings estimates: analysts' consensus on earnings estimate revisions, the magnitude of revision change, the upside potential and estimate surprise (or the degree in which earnings per share deviated from the previous quarter).

Zacks builds the data from 3,000 analysts at over 150 different brokerage firms. The average yearly gain for Zacks Rank #1 (Strong Buy) stocks is +23.62% per year from January, 1988, through June 2, 2025.

For this list, only companies trading 100,000 shares or more daily and in the top 50% of industries were considered. All stocks had a Zacks Rank #1 rank at the time of selection. All information is current as of market open, Nov. 3, 2025.

Guide to Best Small-Cap Stocks

What Are Small-Cap Stocks?

“Small-cap” refers to publicly traded companies whose market capitalisation falls below a certain threshold. The exact cutoff varies by region or index provider, but commonly in the U.S. small-caps are defined as roughly $300 million to $2 billion in market cap.

Why Invest in Small-Cap Stocks

Growth potential: Because these companies are smaller, they have more runway to grow revenues, profits and market share.
Diversification: They often behave differently than large-cap stocks, so including them can enhance portfolio diversification.
Value opportunity: Many small-caps are currently trading at valuations below historical norms or relative to large caps — offering potential mispricing opportunities.

Small-Cap vs Mid-Cap vs Large-Cap Stocks

Small Cap:

Market capitalization of between $300 million to $2 billion (but designation can vary among indices).
Higher growth potential, but higher risk and less liquidity.
More volatile and more sensitive to economic and interest rate shifts.

Medium (Mid) Cap:

Market capitalization generally from $2 billion to $10 billion.
Balanced between growth and stability.
Fewer extremes than small caps, but possibly less upside.

Large Cap:

Market cap is usually over $10 billion.
Established companies, lower growth but more stability.

Benefits of Investing in Small-Cap Stocks

Potential for outsized returns if a small company scales successfully.
Greater market inefficiencies — less analyst coverage means more opportunity for undervalued gems.
Cyclical upside — when conditions improve (such as lower rates or economic recovery) small caps often lead the trend.

Risks and Challenges of Small-Cap Stocks

Higher volatility — More price swings, less predictable earnings.
Sensitivity to economic and interest rate cycles — Small cap companies often carry more floating rate debt, shorter maturities, and weaker financials. Small cap stocks are generally “more vulnerable” in elevated-interest rate environments.
Less liquidity and coverage — Small cap stocks may be harder to trade, with fewer analysts covering them and less public information
Greater capital risk — Many small-cap firms are still unprofitable; their future may be less certain.

Small-Cap ETFs vs Small-Cap Stocks

ETFs: Small-cap exchange traded funds provide instant diversification, lower company-specific risk, simpler to invest.
Individual stocks: Offer higher potential upside (and higher risk). You can benefit from picking a breakout company, but the odds of mis-steps are higher.
If you believe in the asset class broadly, a small-cap ETF may be a smarter choice; if you want to hand-pick potential winners and accept higher risk, then individual stocks might appeal.

How to Choose the Best Small-Cap Stocks

Look at factors like:

Business quality: Profitability (or path to profitability), return on invested capital, competitive advantage (often known as a ‘moat”).
Financial strength: Manageable debt, good cash flow and reasonable valuation.
Valuation: Since small caps are currently trading at depressed valuations relative to large caps, finding ones that are both good quality and cheap may give you an edge.
Sector and cycle fit: Because many small-caps are more cyclical, consider how economic or rate trends might affect them.
Liquidity and transparency: Ensure the company has sufficient trading volume and good public disclosure.

Time horizon: Small-cap investing often requires patience — these stocks may take time to execute and get recognised by the market.

How to Invest in Small-Cap Stocks

Decide your allocation: How much of your portfolio are you willing to place into higher-risk small caps?
Combined approach: Consider holding a small-cap ETF and a few hand-picked individual names for upside.
Use dollar-cost averaging to smooth entry over time (given the greater volatility of small cap stocks.)
Monitor macroeconomic variables: Interest rates, economic growth, inflation, liquidity — these matter for small caps.
Stay disciplined: Set stop-losses or position limits; avoid over-allocating to speculative names
Review your time horizon: Small caps typically work better when held for multiple years rather than trading in and out.

Tips for Building a Small-Cap Portfolio

Diversify across sectors to avoid concentration risk (such as spreading across small-cap healthcare, industrial, consumer stocks and so forth).
Blend quality and speculative: Have some “core” small-cap holdings with proven businesses plus some high-upside speculative names.
Watch weighting: Don’t let any one small-cap issue become too big a part of your portfolio.
Track valuations: Since small-cap valuations can re-rate, be ready to adjust when valuations seem stretched.
Stay updated on macro shifts: For example, rate cuts can help small-caps more than large caps. Medium term, that dynamic could drive performance.

Frequently Asked Questions About Small-Cap Stocks

How long should I hold small-cap stocks?

Because of their risk and growth nature,a time horizon of 3-5 years or more is generally preferable. Short-term trading can be risky due to volatility and structural shifts.

Are small-cap stocks suitable for beginners?

They can be, but only if the investor understands the risks, is comfortable with volatility and uses appropriate position sizing. Beginners might start with ETFs or limit exposure rather than going heavy into speculative names.

What sectors do the best small-cap stocks usually come from?

Historically: industrials, consumer discretionary, healthcare/biotech, technology. Small caps tend to have more cyclical exposure compared to large caps.
Also note many small-caps fly under the radar.

Can small-cap stocks be dividend-paying?

Yes — though less commonly than large-caps. Many small-cap companies reinvest profits into growth rather than returning dividends. But some mature small-caps may pay dividends.

What is the historical performance of small-cap stocks?

Historically small-caps offered a “small-cap premium” over large-caps due to greater growth potential.
However, more recently this premium has eroded — for example, J.P. Morgan reports that the small-cap growth engine has diminished in recent years.
Still, some data suggests that when macro conditions shift (such as interest rate cuts and economic recovery), small caps tend to outperform large caps.