JBT Marel Corporation

Arcosa, Inc.

Stella-Jones Inc.

Lauren Romeo, portfolio manager at the Royce Small-Cap Premier Quality Strategy Fund, has <a href="https://www.royceinvest.com/insights/2025/2Q25/how-small-cap-premier-quality-investing-works">discussed</a> three key holdings that have high long-term confidence. Recall that Royce, founded by <a href="https://oninvest.com/article/kak-investirovat-v-small-cap-pat-covetov-ot-caka-rojsa-legendy-uoll-strit">Wall Street legend</a> Chuck Royce, specializes in small-cap stocks. The Premier fund selects names that generate high returns on invested capital that the portfolio managers believe have durable business models and reinvestment opportunities. These businesses often have characteristics like recurring revenue and leading market positions, Romeo explains. That’s why, even if their share prices dip, they tend to bounce back and rise over the long term.

Royce Premier Fund PM talks three high-confidence holdings

Lucid Group, Inc.

Lucid Group, a small-cap EV manufacturer competing with the likes of Elon Musk’s Tesla, is “entering its biggest multiyear growth sprint in its history,” the Motley Fool <a href="https://www.fool.com/investing/2025/05/21/should-you-buy-lucid-group-stock-ev/#:~:text=%D1%81%D0%B0%D0%BC%D1%8B%D0%B9%20%D0%B1%D0%BE%D0%BB%D1%8C%D1%88%D0%BE%D0%B9%20%D0%BC%D0%BD%D0%BE%D0%B3%D0%BE%D0%BB%D0%B5%D1%82%D0%BD%D0%B8%D0%B9%20%D1%81%D0%BF%D1%80%D0%B8%D0%BD%D1%82%20%D1%80%D0%BE%D1%81%D1%82%D0%B0%20%D0%B2%20%D1%81%D0%B2%D0%BE%D0%B5%D0%B9%20%D0%B8%D1%81%D1%82%D0%BE%D1%80%D0%B8%D0%B8">argues</a>. The outlet sees this as an excellent opportunity to pick up shares while they remain relatively cheap. However, it notes that Lucid is suitable only for risk-tolerant, long-term investors.

Motley Fool: Time to buy EV maker Lucid ahead of expected high sales


UroGen Pharma Ltd.

Shares of UroGen Pharma, which is pursuing a bladder cancer therapy, plunged almost 45% yesterday, May 21, after a U.S. FDA committee deemed the company’s drug too risky to be approved.

FDA committee deems UroGen drug unsafe; shares plunge 45%


Satixfy Communications Ltd.

Quotes on SatixFy, an Israel-based but U.S.-listed small-cap satellite communications systems maker, <a href="https://www.marketwatch.com/investing/stock/satx">jumped</a> more than 44% yesterday, May 20, as a bidding war for the company seemingly came to a conclusion. Earlier in the day, it <a href="https://ir.satixfy.com/news/news-details/2025/MDA-Space-and-SatixFy-Announce-Amended-Merger-Agreement-for-Increased-Consideration-and-Postponement-of-Shareholder-Meeting/default.aspx">announced</a> that Canada’s MDA Space, reacting against a competing bid, had agreed to increase its initial offer by almost 50%.

Israeli satcom company SatixFy soars on upsized bid from MDA Space


Warby Parker Inc.

Alphabet Inc.

Meta Platforms, Inc.

Shares of Warby Parker, the small-cap eyewear brand and retailer of prescription glasses, contact lenses, and sunglasses, <a href="https://www.marketwatch.com/investing/stock/wrby">surged</a> nearly 16% yesterday, May 20. The rally came on the <a href="https://investors.warbyparker.com/news/news-details/2025/Warby-Parker-Partners-with-Google-To-Develop-Intelligent-Eyewear/default.aspx">announcement</a> that the company would partner with Google to develop AI-powered smart glasses — a move that would put them in direct competition with the Meta and EssilorLuxottica/Ray-Ban alliance.

Small cap Warby Parker to develop smart glasses for Google, shares jump


D-Wave Quantum Inc.

The company’s market cap has soared more than 1,200% in the LTM


D-Wave Quantum soars after new computer launch. What’s behind the rally?

On June 30, FTSE Russell will complete the annual rebalancing of its main small-cap index, the Russell 2000,&nbsp; as well as the large-cap Russell 1000 and the broad-market Russell 3000. Thus, a new set of more than 3,000 stocks is in store. With the day of the rebalancing usually the highest-trading volume day of the year, what should investors know?

The biggest trading day for small caps is approaching: How should investors prepare?


GitLab Inc.

GitLab, a mid-cap that runs a software development platform, was among the few names in the software segment to receive a target price downgrade from RBC Capital in an update ahead of scheduled quarterly earnings, reports the Motley Fool. This triggered a selloff in GitLab, with the stock falling almost 5% yesterday.

RBC slashes target price for GitLab in rare downgrade for software name


Data

Bone Biologics Corporation

Shares of Bone Biologics, a micro-cap biotech focused on bone <a href="https://www.bonebiologics.com/">regeneration</a> in spinal fusion, have massive upside of more than 2,130%, Zacks Small-Cap Research <a href="https://s27.q4cdn.com/906368049/files/News/2025/Zacks_SCR_Research_05132025_BBLG_Sorensen.pdf">argues</a> in an update report published last week. Long overlooked by investors, Bone Biologics has now started human clinical trials. If successful, the stock <a href="https://scr.zacks.com/news/news-details/2025/BBLG-Entering-Critical-Stage-in-Good-Shape/default.aspx">could soar</a>.

Zacks sees 2,000+% upside in micro-cap biotech Bone Biologics


23andMe Holding Co.

The DNA testing firm 23andMe has been sold off in a bankruptcy auction. Once a high-flying company backed by top investment funds whose shares <a href="https://www.fiercehealthcare.com/tech/23andme-rises-stock-market-debut-after-richard-branson-backed-merger">popped</a> after the IPO, 23andMe will be bought for only $256 million, 96% off its market valuation four years ago.

Pharma giant Regeneron buys DNA database of 23andMe in bankruptcy

UFP Industries, Inc.

International General Insurance Holdings Ltd.

Academy Sports and Outdoors, Inc.

Miles Lewis, a portfolio manager at the Royce Small-Cap Total Return Fund, has <a href="https://www.forbes.com/sites/baldwin/2025/05/17/why-small-caps-are-ready-for-a-rebound/">spotlighted</a> six small caps that could outperform in an environment of high interest rates and a possible recession. Smaller companies, unlike big-cap multinationals, are more insulated from tariffs and deglobalization, as they tend to focus on the domestic market, he <a href="https://www.forbes.com/sites/baldwin/2025/05/17/why-small-caps-are-ready-for-a-rebound/">told</a> <i>Forbes</i>. Below are Lewis’s top picks.

Royce spotlights small caps set to beat big names in market turbulence

Sky Harbour Group Corporation

Shares of Sky Harbour Group, a small-cap <a href="https://ir.skyharbour.group/overview/default.aspx">developer</a> of premium hangar campuses for business jets, should trade 80% higher than current market prices, <a href="https://www.channelchek.com/news-channel/sky-harbour-group-skyh-initiation-of-coverage-a-long-cashflow-growth-runway">according</a> to investment bank Noble Capital Markets. The valuation, laid out by Noble in an initiation report, is driven by a highly profitable business model, access to low-cost financing, and steady demand.

Noble Capital initiates on aviation hangar builder Sky Harbour, TP implies 80% upside

Sidus Space, Inc.

Quotes on the micro-cap space-as-a-service company Sidus Space tumbled more than 12% in after-hours trading yesterday, May 15, following the <a href="https://investors.sidusspace.com/news-events/press-releases/detail/236/sidus-space-reports-first-quarter-2025-financial-results">release</a> of disappointing first-quarter financial results, which showed a sharp decline in key metrics.