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Special Report

MarketBeat’s Top 5 Rated Small-Cap Stocks

Authored by Ryan Hasson. Published: 12/22/2025. 

What You Need to Know

• Small-cap stocks are regaining momentum as rate cuts and the end of quantitative tightening drive a renewed risk-on environment.
• MarketBeat’s top-rated small-cap names highlight where analyst conviction is strongest, spanning profitable healthcare plays, rate-sensitive financials, and high-growth biotech innovators.
• While volatility remains elevated, strong analyst sentiment and improving fundamentals suggest select small-cap opportunities could outperform as easing financial conditions carry into 2026.

As the market pushes toward year-end highs and the holiday season is in full force, optimism and speculation have returned. Major indices continue to hover near record levels, volatility remains contained, and investors are increasingly positioning for a more accommodative monetary backdrop in 2026. With interest rates moving lower and the Federal Reserve officially ending its quantitative tightening program on Dec. 1, market conditions are beginning to resemble the early stages of a renewed easing cycle.

That shift has reignited risk appetite, particularly in the small-cap segment of the market.

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One of the clearest gauges of this renewed enthusiasm is the iShares Russell 2000 ETF (NYSEARCA: IWM), a widely followed proxy for small-cap sentiment. The ETF is currently trading just under 3% below its 52-week highs and remains firmly above a major multi-year breakout level near $250. Recent performance has been notable, with IWM gaining nearly 8% over the past month as investors rotate into more rate-sensitive sectors. Small-cap stocks tend to benefit disproportionately from falling interest rates due to their greater reliance on external financing and more limited access to capital markets. As borrowing costs ease and liquidity conditions improve, investor appetite for higher-growth, higher-volatility names typically increases.

That said, small-cap investing is never without risk. These companies often experience sharper drawdowns, thinner liquidity, and greater earnings variability. As a result, analyst sentiment and institutional conviction can play an outsized role in separating durable opportunities from speculative excess. With that in mind, it is worth taking a closer look at MarketBeat’s list of the highest-rated small-cap stocks, which ranks companies based on average analyst ratings over the past 12 months. Below are the top five names currently sitting at the top of that list.

CorMedix: Profitable Biopharma With Strong Analyst Conviction 

CorMedix (NASDAQ: CRMD) is the highest-rated small-cap stock on MarketBeat’s list and stands out as an unusual entry within the small-cap universe due to its profitability and earnings profile. With a market capitalization of just under $1 billion, CorMedix is a biopharmaceutical company focused on reducing inflammation and preventing infections in critically ill patients. Its lead product, Neutrolin, is a catheter lock solution designed to prevent catheter-related bloodstream infections in patients undergoing hemodialysis, an area of significant unmet medical need.

Neutrolin has already received market authorization in the European Union under the CE Mark, positioning the company to generate meaningful commercial traction while it continues to expand its pipeline. While CorMedix is often described as a clinical-stage company, its recent financial performance paints a more mature picture. In November, the company reported third-quarter 2025 earnings that substantially exceeded expectations, with earnings per share of $1.26 compared with consensus estimates of $0.48. Revenue surged more than 800% year-over-year to $104.3 million, well ahead of analyst forecasts.

It’s important to note that a sizable portion of net income was driven by a one-time tax benefit of almost $60 million, which inflated headline earnings. Even accounting for that, the underlying revenue growth and operating leverage remain impressive. The stock currently trades at a forward valuation that appears attractive relative to its growth profile, and analyst sentiment is overwhelmingly bullish. Of the 10 analysts covering the name, nine rate it a Buy, with a consensus price target of $18.33, implying more than 50% upside from current levels. For a stock already up roughly 40% on the year, that level of conviction helps explain why CorMedix sits atop MarketBeat’s rankings.

LendingTree: Rate-Cut Recovery Story in Consumer Finance 

Second on the list is LendingTree (NASDAQ: TREE), a digital financial services marketplace that connects consumers with lenders across mortgages, personal loans, auto loans, credit cards, and insurance products. With a market capitalization of $715 million, LendingTree has spent the past several years navigating a challenging macro environment marked by rising rates and suppressed loan demand. More recently, however, the business has shown clear signs of recovery.

Revenue has steadily improved throughout 2025, and the company has returned to profitability as operating leverage has strengthened. Analysts have taken notice. Following LendingTree’s most recent quarterly results, Truist analyst Youssef Squali raised his price target from $62 to $72, citing broad-based double-digit growth across all major segments, particularly within insurance, as well as improving balance sheet flexibility. With interest rates normalizing, LendingTree is increasingly viewed as a direct beneficiary of renewed borrowing demand.

Analyst sentiment reflects that optimism, with nine of 10 analysts rating the stock a Buy and a consensus price target implying roughly 42% upside. From a technical perspective, shares are consolidating below key resistance near $55, a level that has acted as a ceiling in recent months. A sustained breakout above that area could open the door for a move back toward 52-week highs, reinforcing the improving fundamental narrative.

Mind Medicine: Psychedelic Therapeutics With Breakout Momentum 

Mind Medicine (NASDAQ: MNMD), commonly known as MindMed, is the third-highest-rated small-cap stock on MarketBeat’s list and one of the most closely watched names in the emerging psychedelic therapeutics space. The company is focused on developing novel treatments for mental health and neurological disorders using psychedelic-inspired compounds, applying rigorous clinical methodologies to molecules historically viewed as unconventional.

MindMed’s pipeline includes MM-120, a low-dose LSD formulation for anxiety disorders; MM-310, a non-hallucinogenic ibogaine-derived compound targeting opioid withdrawal; and MM-402, a 5-MeO-DMT receptor agonist aimed at mood and stress-related conditions. While the company remains pre-revenue and unprofitable, investor enthusiasm has surged alongside growing acceptance of psychedelic-assisted therapies within mainstream medicine.

Shares are up more than 80% year-to-date, driven by positive clinical updates and increased analyst coverage. Of the 11 analysts following the stock, 10 rate it a Buy, with a consensus price target of $26.50, implying upside of more than 100%. Importantly, MindMed maintains a solid liquidity position, with nearly $4 per share in net cash, providing meaningful runway to advance its pipeline without immediate financing pressure. For investors, the key variables to monitor remain regulatory milestones, clinical trial results, and cash-burn discipline.

Trevi Therapeutics: High-Conviction Biotech With Clinical Validation 

Fourth on the list is Trevi Therapeutics (NASDAQ: TRVI), a clinical-stage biopharmaceutical company developing non-opioid therapies for chronic and acute pain conditions. Trevi’s lead candidate, Haduvio, is a proprietary formulation designed to treat refractory chronic cough and idiopathic pulmonary fibrosis-associated cough, areas where current treatment options are limited.

The stock has been one of the strongest performers in the small-cap biotech space this year, rising more than 200% year-to-date. That move has been fueled by positive Phase 2 trial results and growing confidence in Haduvio’s differentiated mechanism of action. In December, Stifel analyst Annabel Samimy raised her price target from $15 to $18 following encouraging clinical data, highlighting Haduvio as the only drug to date to demonstrate meaningful efficacy in reducing cough in IPF patients.

Analysts remain broadly bullish, with a consensus Buy rating and price targets implying more than 60% upside from current levels. While Trevi remains pre-revenue, its clinical progress and growing validation within the medical community have positioned it as one of the more compelling speculative biotech names heading into 2026.

Atai Beckley: Breakthrough Mental Health Platform With Upside 

Rounding out the list is Atai Beckley (NASDAQ: ATAI), formerly known as Atai Life Sciences, a clinical-stage biotechnology company focused on mental health disorders through a decentralized portfolio of subsidiaries and partnerships. Founded in 2018, Atai targets treatment-resistant depression, PTSD, substance use disorders, and ADHD using both psychedelic and non-psychedelic compounds.

Despite a recent pullback of more than 40% from its 52-week highs, the stock remains up nearly 200% year-to-date and carries a market capitalization of $1.4 billion. Analyst conviction remains exceptionally strong, with a consensus Buy rating and implied upside of more than 200% based on current price targets.

Atai’s most advanced program, BPL-003, is a nasal spray designed to deliver rapid antidepressant effects with a single administration. The therapy has received Breakthrough Therapy designation from the FDA for treatment-resistant depression, a significant validation of its potential. Positive topline results from a Phase 2b trial extension further reinforced confidence in the program’s safety and efficacy profile. For investors, Atai represents a high-risk, high-reward bet on the future of mental health therapeutics, backed by strong regulatory momentum.

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