What Small-Cap Stocks Could Explode This Year?

If you’ve been paying any attention to the stock market lately, you’ve probably noticed this slow-but-steady wave of excitement building around small-cap and penny stocks again. It happens every few years—money rotates out of giant, predictable companies and starts hunting for the next underdog that could run 200%, 500%, or more. And honestly, that’s where things get fun.

Small-cap stocks (and especially penny stocks that trade under $5) aren’t exactly the “play it safe” category. A lot of these companies are small, sometimes unproven, sometimes misunderstood, and often ignored by Wall Street. But that’s also why they can take off so fast: when fresh volume hits or a big catalyst drops, prices can move in ways you don’t usually see with giant tickers like Apple or Microsoft.

Sure, they’re volatile. Sometimes borderline chaotic. But for people who know how to spot momentum early—volume surges, clean technical setups, weird but promising news—they offer some of the highest upside potential in the market.

And 2025 has already given us a few tickers that look like they’re winding up for a bigger move.

In this guide, we’ll walk through five small-cap stocks that are showing real promise right now, why they were selected, what their charts are signaling, and how to trade small-caps without getting shredded by volatility.

What Are Penny Stocks and Small-Cap Stocks?

Let’s level-set before we start talking charts and price targets.

A “penny stock” might sound like some ancient relic traded out of a smoky back room, but the SEC literally defines it as any stock trading under $5 per share. That means a lot of small-cap companies—even some with decent products or revenue—fall under the “penny” label whether they deserve the stigma or not.

Small-cap stocks tend to have market caps under $300 million, sometimes much lower. They don’t trade as many shares daily, they don’t get featured on CNBC every week, and honestly, most investors ignore them until suddenly they can’t ignore them anymore.

Because of that low volume and limited visibility, these stocks can whip around a lot. A single press release, a partnership, a rumor, or even just an influencer hyping them online can send a stock flying 30–50% in a day. That’s the volatility side.

But the interesting part? Not every small-cap is just speculation wrapped in flashy PR. Some of these companies actually have real tech, patented science, niche products, or revenue models that could take off if momentum lines up.

Top Small-Cap Stocks That Could Explode in 2025

Below are five small-cap tickers that have already started flashing signs of strength. They weren’t chosen at random—each one meets several liquidity, volume, and technical criteria to avoid the “lottery ticket” names that only move on hype.

1. ADC Therapeutics SA (ADCT)

Price: $2.50
One-Month Return: 88.0%
Average Volume: 568,000
Exchange: NYSE

Company Snapshot

ADC Therapeutics is a Switzerland-based biotech that specializes in antibody-drug conjugates (ADCs), which are basically targeted cancer treatments designed to deliver very strong drugs directly into tumor cells while sparing healthy ones. ADCs have been gaining attention across the biotech world, and ADCT is one of the earlier players in the space.

Technical Setup

Last year ADCT made a huge move—from around 36 cents to almost $6—which is the kind of run that gets technical traders watching. Since that run, the stock has been cooling down and consolidating into something that pretty closely resembles a bull flag on the weekly chart.

The key moment came in April when ADCT put in a higher low around $1.05, which is often the first sign that buyers are creeping back in.

Now the stock has reclaimed its 20-week moving average and is poking around the 50-week line—a spot where longer-term reversals often take shape.

Breakout Level: $3.49
Bullish Target: ~$6 if the breakout confirms

Expert Take

Biotech is cyclical. When sentiment turns positive—and lately it has—stocks like ADCT sometimes become leaders in the early stages of the trend.

Also Read: What Does Market Cap Mean in Investing?

3. Society Pass Incorporated (SOPA)

Price: $1.59
One-Month Return: 71.9%
Average Volume: 1.3 million
Exchange: Nasdaq

Company Snapshot

Society Pass (SOPA) is building out a loyalty and e-commerce network across Southeast Asia. If you’ve looked at the region’s digital growth trends, you know it’s one of the fastest-expanding online economies in the world. Tons of new consumers entering the digital market, more mobile adoption, more online payments—basically everything that fuels companies like SOPA.

Technical Setup

SOPA bottomed at $0.64 in April and printed a textbook bullish hammer candle—those candles often show traders are done selling and stronger hands are stepping in.

Since then, the stock broke above its long-term downtrend and jumped over both its 20-week and 50-week moving averages, which is usually a sign that bears are losing control.

Breakout Level: $2.00
Potential Target: Retesting its old high near $6.76

Case Study Insight

SOPA did something very similar back in 2021. Same type of setup, same kind of volume, and the stock went on to triple in just a few months.

History doesn’t always repeat, but in small-cap land, it often rhymes.

4. Intrusion Inc. (INTZ)

Price: $1.44
One-Month Return: 14.3%
Average Volume: 331,000
Exchange: Nasdaq

Company Snapshot

Intrusion Inc. is a Texas cybersecurity company that builds AI-powered intrusion detection systems for enterprises and government agencies. Cybersecurity is one of the few industries where demand doesn’t really slow down—breaches keep rising, companies keep spending.

Technical Setup

INTZ basically went parabolic earlier this year—ripping from $0.35 to $7.34. A nearly 2,000% surge is extreme even for penny stocks, and when something runs that hard, a sharp cooldown is normal.

But here’s the interesting part: the stock has now regained its 50-week moving average, and the 20-week has crossed above it (a bullish signal). There’s also a double-bottom forming on the chart, which shows the selling pressure might be fading.

A break above $1.55 would confirm the pattern.

Breakout Level: $1.55
Potential Target: $3–$4 zone

Pro Tip

Cybersecurity isn’t going anywhere. Governments spend heavily on it, businesses are legally required in many cases to secure data, and new threats appear constantly. Small-caps in this space can fly when contracts or pilot programs hit.

5. Personalis, Inc. (PSNL)

Price: $4.69
One-Month Return: 22.1%
Average Volume: 743,500
Exchange: Nasdaq

Company Snapshot

Personalis works in precision oncology—basically sequencing and analyzing a patient’s tumor to help design personalized cancer treatments. It’s a growing sector in biotech, and both hospitals and pharma companies have been increasing demand for advanced genomic data.

Technical Setup

PSNL is carving out a falling wedge—a pattern that frequently marks trend reversals.

Two levels stand out:

• $5.16 — where the 200-week moving average sits
• $5.61 — a previous swing high

A break above $5.61 would likely trigger momentum traders to jump in.

Breakout Level: $5.61
Potential Target: Above $8 if volume follows through

Expert Opinion

Biotech M&A has picked up over the last year, and companies like PSNL—with unique tech and strong datasets—often become acquisition targets.

How We Selected These Stocks

These stocks weren’t thrown together based on hype. They were filtered through several criteria to focus on actual tradeable setups—not the sketchy low-volume OTC stuff.

Criteria	Requirement
Share Price	Above $1.50
Avg 30-Day Volume	200,000+
Trading History	At least 2 years
Trend	Positive 1-month performance
Technical Setup	A clear bullish pattern or developing breakout

The goal was to keep this list in the “speculative but still respectable” range—meaning exchange-listed, liquid, and showing real chart development.

Also Read: Should You Pay Off Debt or Invest First?

Pros and Cons of Investing in Penny Stocks

Investing in penny stocks is a bit like driving a fast car: thrilling, but also easy to lose control if you’re not careful.

Pros

• Low price means you can get meaningful exposure with little capital
• Massive growth potential if catalysts hit
• Early access to emerging companies before institutions pile in

Cons

• Wild volatility—big swings happen daily
• Harder to find reliable, vetted information
• Dilution, delisting, and poor management happen more often

Expert Tip:
If you’re new to small-cap trading, keep your exposure small—5–10% of your total portfolio max. Use stop-losses or at least mental exit points. Don’t “hope” your way out of a bad trade.

Actionable Tips for Trading Small-Cap Stocks

Some quick, practical strategies traders use to manage risk and find cleaner setups:

1. Follow the Volume – Sudden spikes usually mean something real is happening.
2. Use Technical Levels – Breakouts, moving averages, RSI divergences—they matter more on volatile stocks.
3. Ignore Social Media Noise – Anyone can hype a stock. Very few can move it.
4. Plan Your Entry and Exit – Don’t chase. Don’t hold blindly.
5. Diversify Small-Cap Positions – Spread risk across several tickers.

Also Read: How Did Tech Stocks React to the Recent Earnings Reports?

Real-World Example: From Penny to Powerhouse

Plug Power (PLUG) is one of the best-known examples. In early 2020, PLUG went from under $5 to over $70 during the clean energy boom. Yes, it later cooled off hard, but that run showed what’s possible when a real, growing company lines up with investor enthusiasm.

Not every penny stock becomes the next PLUG—but it only takes one in your portfolio to make a big difference.

Final Thoughts: Small-Caps Worth Watching in 2025

If you’re the kind of investor who likes spotting potential before the crowd, small-cap stocks are where a lot of that early action happens. They’re never going to be as stable as large-caps, but the tradeoff is that small-caps can deliver outsized gains if you catch them during the right phase of their growth cycle.

Biotech names like ADC Therapeutics and Personalis are showing strong setups, and digital players like SOPA could benefit from regional economic growth. Then you have cybersecurity—always a hot theme—which puts INTZ in an interesting spot.

Just remember the basics: never risk more than you’re prepared to lose, diversify across sectors, and stay disciplined with your entries and exits.

2025 could be a huge year for selective small-cap plays.

FAQs About Small-Cap Stocks