InvestorPlace analyst spotlights three stocks as Powell ends term as Fed chair

InvestorPlace analyst Thomas Yeung has spotlighted three small-cap stocks that investors should consider buying before Friday. That is when the term of Jerome Powell as chair of the Fed expires, writes Reuters. He is likely to be replaced by Kevin Warsh, whose nomination was put forward in January by U.S. President Trump. Unlike Powell, Warsh has advocated lower interest rates. Although nearly 96% of traders do not expect such a move from the U.S. central bank, according to CME FedWatch data, Yeung argues that rate cuts still cannot be ruled out.

That scenario would be especially beneficial for smaller companies because a significant portion of their borrowing carries floating interest rates.

Below are the stocks highlighted by Yeung, selected from a list of 53 companies compiled by InvestorPlace senior analyst Louis Navellier.

TOYO 

TOYO Co., a Japanese solar-cell manufacturer listed on the Nasdaq, could benefit from rising energy prices and, as a result, stronger demand for alternative energy sources, according to Yeung’s article.

In January, TOYO signed an agreement with a U.S. polysilicon supplier used in the production of solar panels. The move allows the company to qualify for federal incentives in the U.S. and participate in government-funded energy projects. Since 2025, those benefits have only been available to companies that are not FEOCs – “foreign entities of concern.”

That gives TOYO a major advantage over its Chinese competitors, Yeung wrote. As production capacity expands in the U.S., the company’s revenue is expected to surge 95% to $832 million in 2026 and then rise another 33% in 2027, according to the InvestorPlace analyst.

Yeung argues that the company’s shares are currently “remarkably cheap” and undervalued by investors. At the same time, he pointed to risks, including potential Fed rate increases that could constrain financing for TOYO’s business.

The stock currently has two Wall Street “buy” ratings versus no “sell” recommendations. The average target price stands at $16.50 per share, implying upside of nearly 47% versus the Friday closing price.

Ardmore Shipping

Ardmore Shipping, headquartered in Bermuda and listed on the New York Stock Exchange, could benefit from the closure of the Strait of Hormuz amid the Iran conflict, according to the InvestorPlace article.

Ardmore, which owns 25 vessels, specializes in transporting refined petroleum products. The recent sharp increase in charter rates is expected to generate significant profits for the company, Yeung wrote. He cited a Wall Street consensus forecast calling for earnings growth of roughly 25% annually over the next two years, while noting that the figure could prove even higher if elevated charter rates persist.

Ardmore would also benefit from lower interest rates because 20 of its vessels are financed with floating-rate mortgages, Yeung continued. A shift in Fed policy would immediately reduce interest payments and lower the cost of acquiring new ships, he noted.

The stock carries three Wall Street analyst ratings, all of them “buy.” The average target price stands at $20.77 per share, nearly 17% above the latest closing price.

Nautilus Biotechnology

Startup Nautilus Biotechnology is developing a new method of protein analysis that could potentially revolutionize the diagnosis and study of diseases such as Alzheimer’s, Parkinson’s, and amyotrophic lateral sclerosis, or ALS, a condition that progressively weakens muscles and ultimately leads to death. Nautilus, like the broader biotech sector, is heavily dependent on access to financing to continue development efforts, Yeung wrote.

The management expects a commercial launch of its protein-analysis platform by the end of 2026. The current standard approach used for such analysis is mass spectrometry. Under that method, researchers break proteins into fragments and then attempt to reconstruct their structure, a process that can lead to errors, Yeung explained. Nautilus’ system analyzes proteins in their intact form, using fluorescent probes to map their structure without destroying any fragments.

“Think of it as reading a book rather than shredding it and guessing the plot from the scraps,” Yeung wrote. A more precise “map” means more effective drug development – and potentially faster answers to questions researchers have struggled with for decades, the analyst added.

Yeung believes that if interest rates fall and Nautilus meets its development timeline, the company’s shares could rise sharply. The key risk for investors is that neither of those conditions materializes.

Two Wall Street analysts rate the stock a “buy.” The average target price stands at $4 per share, implying upside of more than 49%.