«The Summer of Small?» was the title of an early-June note by the chief technical strategist at Roth, J.C. O'Hara.

The Russell 2000 Index, which tracks the performance of smaller U.S.-listed companies, dropped 7.4% in January-May 2025 before bouncing back 3.0% so far in June. For comparison, the S&P 500 increased 0.5% and 1.5% in the same time frames. 

In five similar instances when small caps fell similarly from January through May, they rebounded sharply in June, points out Julian Emanuel, senior managing director for equity, derivatives, and quantitative strategy at Evercore ISI. The optimism is shared by other analysts. «We think this could be setting up for 'smallcap summer,'» Jonathan Krinsky, chief market technician at BTIG, wrote to clients in early June.

«We have been closely watching Small Caps as the Russell 2000 started to form an accumulation pattern several weeks ago,» CNBC's quoted O'Hara of Roth as saying. In the first week of June, «Price was finally able to break out. This sort of formation historically has further upside.» 

Freedom Finance Global, at the request of Oninvest, has picked five small caps with great upside for a potential «summer of small» rally. 

GoHealth: The company provides marketplace and insurance plan brokerage services focused on the Medicare Advantage segment. Freedom Finance Global has set a target price of $24 per share for the stock, implying upside of 345% from the closing price yesterday, June 23.

Growth drivers: Among the key growth drivers Freedom Finance Global cites the continued expansion of the Medicare Advantage market, with Medicare Advantage enrollment expected to grow from 54% of Medicare-eligible beneficiaries in 2024 to 61% by 2028. Commission rates for Medicare Advantage plans are also steadily rising, which supports revenue growth for GoHealth. In addition, the company benefits from frequent plan switching among enrollees, which sustains demand for its services.

Risks: The potential for revenue fluctuations driven by changes in the churn rate; regulatory or political developments that could impact the company’s financial performance; and heightened competition from key peers such as eHealth and SelectQuote.

Achieve Life Sciences: Freedom Finance Global has a $12 per share target price on this biotech, for 212.5% upside. Achieve Life Sciences plans to submit a New Drug Application to the FDA for cytisinicline, its drug targeting nicotine addiction. The drug has a robust evidence base, demonstrating strong efficacy and safety comparable to the best available treatments, Freedom Finance Global notes. The company is also studying cytisinicline for treating vaping addiction. If trials proceed successfully, it could become the first prescription therapy for that indication.

Growth drivers: A large addressable market of approximately 46 million smokers in the U.S., of whom around 55% attempted to quit in the past year but were unsuccessful. Cytisinicline has demonstrated strong clinical trial results. Additionally, Freedom Finance Global analysts view Achieve Life Sciences as an attractive takeover candidate.

Risks: The necessity to evaluate long‑term administration of the drug, substantial competition in smoking‑cessation therapies, and Achieve’s need for resources to support commercialization.

Riley Exploration Permian: Freedom Finance Global has a target price of $55 per share for Riley Exploration Permian, translating into upside of approximately 104%. The company specializes in horizontal drilling operations throughout the Permian Basin and recently announced the acquisition of Silverback Exploration, a largely undeveloped asset in New Mexico. The management is keen on acquiring high-quality assets while reducing capital expenditures, Freedom Finance Global noted.   

Growth Drivers: One of the growth drivers cited by analysts is the startup of gas-fired generation capacity, which is expected to lower costs and enhance profitability of natural gas sales. Additionally, with new U.S. LNG export capacity coming online in 2025-2026, domestic gas prices are likely to be supported.

Risks: A slowdown in global economic growth, potentially triggered by U.S. tariffs, could suppress demand for hydrocarbons and negatively impact Riley Exploration Permian's financial performance. In addition, increased oil production by OPEC+ nations will exert downward pressure on energy prices.

Perfect Corp.: Perfect Corp. develops AI- and augmented reality-based solutions for brands and consumers in the beauty and fashion industries. Its apps, including YouCam Makeup and YouCam Perfect, allow users to pick cosmetics, perform virtual skin diagnostics, and try on eyeglasses. Freedom Finance Global's target price is $4 per share, implying upside of 93% versus the current market price on the Nasdaq.

Growth drivers: Growth may be supported by potential partnerships with top 20 global cosmetics companies and expansion into AI solutions for skincare, fashion, and jewelry. Additional growth drivers include increased monetization of AI features in the YouCam app suite and expansion of virtual fitting functionalities for clothes and accessories following the acquisition of Wannaby. 

Risks: Potential deterioration in macroeconomic conditions or weakness in the beauty industry, which could weigh on consumer demand. The company also faces the risk of losing its competitive edge due to the rapid evolution of AI and the emergence of larger peers.

Freightos: Freedom Finance Global's target price for this booking and payments platform for international freight is $4 per share, implying 84.3% upside. Freightos could benefit from global freight inefficiencies: The industry remains significantly under‑digitized, with cross‑border freight transactions typically involving multiple intermediaries at every stage.

Growth drivers: Digitalization of international freight transportation, entry into the maritime logistics services market, and expansion in the land freight segment. 

Risks: Macroeconomic and geopolitical instability, lower trade volumes, and freight rates.

The AI translation of this story was reviewed by a human editor.

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