Lockheed Martin Corporation

Parrot S.A.

Saab AB

Kratos Defense & Security Solutions, Inc.

In 2024, the global drone market was <a href="https://www.grandviewresearch.com/industry-analysis/drone-market-report">valued</a>&nbsp;at about $73 billion. With a CAGR of roughly 14%, it is expected to reach $84 billion in 2025 and could exceed $160 billion by 2030. The expansion is supported by rapid advances in autonomy, AI integration, and imaging systems, as well as widening adoption of drones in agriculture, logistics, construction, infrastructure inspection, and defense.

Rising defense demand is buoying drone stocks. Who are the biggest winners?

WisdomTree, Inc.

DeFi Development Corp.

OSL Group Limited

In early April, the House Financial Services Committee voted to advance a U.S. stablecoin bill. By July, it had passed both chambers of Congress and was signed into law by President Trump. The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) is the first federal regulatory framework in U.S. history for stablecoins, which are dollar-backed digital assets designed to maintain a fixed value.

U.S. GENIUS Act: Small caps that will benefit from the new stablecoin regulation

Altimmune, Inc.

Terns Pharmaceuticals, Inc.

Viking Therapeutics, Inc.

Following the meteoric success of Novo Nordisk and Eli Lilly’s semaglutide-based weight-loss injections, the obesity and metabolic disease treatment sector has drawn heightened investor attention. Since Ozempic was <a href="https://www.prnewswire.com/news-releases/novo-nordisk-receives-fda-approval-of-ozempic-semaglutide-injection-for-the-treatment-of-adults-with-type-2-diabetes-300567052.html">approved</a>&nbsp;in December 2017, Novo Nordisk’s stock has gained 125%, pushing its <a href="https://companiesmarketcap.com/novo-nordisk/marketcap/">market capitalization</a> to $252 billion. Eli Lilly, after launching <a href="https://investor.lilly.com/news-releases/news-release-details/fda-approves-lillys-Zepboundtm-tirzepatide-chronic-weight">Zepbound</a>&nbsp;in November 2023, has seen its share price climb 23% and its <a href="https://companiesmarketcap.com/eli-lilly/marketcap/">market cap</a> reach $681 billion. Morgan Stanley <a href="https://www.morganstanley.com/insights/articles/weight-loss-medication-market-unstoppable-growth#:~:text=Morgan%2520Stanley%2520Research%2520now%2520estimates,about%2520%252415%2520billion%2520in%2520sales">estimates</a>&nbsp;the global market for obesity drugs could exceed $150 billion by 2035.

Small caps that can challenge Novo Nordisk and Eli Lilly in the obesity drug market

Aeva Technologies, Inc.

Applied Digital Corporation

Pagaya Technologies Ltd.

NVIDIA Corporation

The excitement around artificial intelligence is heating up not only the securities of technology giants. Against the background of record quarterly reports of Big Tech and growing optimism of Wall Street, investors are finding undervalued ideas in the small capitalization segment. The biggest gainers are companies creating infrastructure for AI development - from building data centers to supplying specialized equipment and solutions.

Not just Big Tech: Which small-cap companies are benefiting from the development of AI

AeroVironment, Inc.

In recent years, the U.S. government has stepped up support for the drone industry. Under the Trump administration, Pentagon budgets for unmanned systems have been repeatedly increased, dedicated programs launched, and export restrictions eased. In 2020, during Trump’s first term, Washington <a href="https://www.armscontrol.org/act/2020-09/news/us-reinterprets-mtcr-rules#:~:text=The%2520Trump%2520administration%2520announced%2520on,See%2520ACT%2520%252C%2520July%252FAugust%25202020">revised</a>&nbsp;the Missile Technology Control Regime (MTCR) to allow more flexible exports of large armed drones to allied countries. This year, Trump has <a href="https://dronelife.com/2025/06/12/explained-what-trumps-executive-orders-on-drones-mean-for-u-s-exports/#:~:text=The%2520order%252C%2520Unleashing%2520American%2520Drone,%25E2%2580%259D">signed</a>&nbsp;new executive orders aimed at accelerating testing, boosting domestic production, and promoting U.S. drone exports.

Three U.S. and European drone stocks that could ride recent momentum in sector

Small caps are again the spotlight, but not because they are outperforming. According to Refinitiv Lipper data as of August 4, investors have pulled $94.7 billion from U.S. small-cap funds since the start of the year, including $47.3 billion in July alone – the largest monthly outflow in 5 years. That figure also far exceeds the total for the second quarter, when withdrawals reached $30.3 billion, the highest quarterly outflow since 2020. Despite occasional rallies, small caps have trailed large caps by a wide margin. In the first seven months of the year, the S&amp;P 500 rose about 6.5%, while the Russell 2000 fell roughly 1.0%.

Small-cap ETFs see biggest outflow in 5 years in July: Why not to shun the segment

Franklin Covey Co.

Many readers are familiar with American business coach Stephen Covey and his landmark 1989 book <i>The 7 Habits of Highly Effective People</i>. A global bestseller translated into dozens of languages, it has sold over <a href="https://www.simonandschuster.com/books/The-7-Habits-of-Highly-Effective-People/Stephen-R-Covey/9781982137137#:~:text=,Book%2520of%2520the%2520Twentieth%2520Century">40 million copies</a> to date. The book’s success became the springboard for a consulting business that formalized Covey’s approach into professional training programs. Although Covey passed away in 2012, his principles on personal and organizational effectiveness remain influential. Franklin Covey, the publicly traded company that evolved from his original business,&nbsp;showed how the book works in real life.

Franklin Covey off 47% YTD: What's wrong with '7 habits of highly effective people'

STIF Societe anonyme

RaySearch Laboratories AB

The period from 2021 to 2024 proved challenging for European small-cap stocks. Amid a prolonged phase of tight monetary policy in the eurozone and underperformance relative to the U.S., investors largely overlooked the Old World's smaller companies. Over that period, the MSCI Europe Small Cap index rose just 2.6%, including a nearly 27% drop in 2022. By comparison, the iShares STOXX Europe 600 UCITS ETF gained 39.7%, while the MSCI World index advanced 46.0%.

Why European small caps are back on investors’ radar in 2025

Heineken N.V. A

Anheuser-Busch InBev SA/NV

Carlsberg A/S

Compania Cervecerias Unidas S.A.

Summer is traditionally a hot season for brewers. Just four months - from May through August - <a href="https://www.goodbeerhunting.com/sightlines/2022/6/6/myth-busting-beers-big-summer-sales-season">bring</a> up to 40% of companies' annual combined sales in the U.S. market: heat, festivals and holidays drive demand.&nbsp;

Aldiyar Anuarbekov

Writes about: