Zeo Energy Corp.

Quotes on Zeo Energy, a small-cap provider of residential solar, distributed energy, and energy efficiency solutions, soared almost 120% yesterday, May 29, before giving back 15% in premarket trading today. This came after Zeo <a href="https://investors.zeoenergy.com/press-release?i=145893">announced</a> it would acquire Heliogen, which specializes in renewable energy storage solutions for industrial facilities and data centers. <a href="https://www.channelchek.com/news-channel/zeo-energy-to-acquire-heliogen-forming-a-comprehensive-clean-energy-platform">According</a> to the investment bank Noble Capital Markets, this deal marks a strategic shift for Zeo, positioning it as a more vertically integrated energy provider with diversified revenue streams.

Solar energy player Zeo doubles on deal for merger with Heliogen 


Green Brick Partners, Inc.

Mercury Systems, Inc.

Kratos Defense & Security Solutions, Inc.

Analysts interviewed by <i>Barron’s</i> have <a href="https://www.barrons.com/articles/small-cap-stocks-big-returns-029eb837">spotlighted</a> eight small caps with strong long-term return potential — three in the housing sector, another three in defense, and two in cybersecurity.

Barron’s: Eight small caps promising big returns


reAlpha Tech Corp.

Freedom Broker has downgraded its rating on reAlpha Tech, the micro-cap company <a href="https://ir.realpha.com/?_gl=1*ra8hrm*_gcl_au*NzI1Nzk3NjguMTc0ODMyODg4OQ..">behind</a> an AI-powered, integrated real estate platform. The reason for the downgrade is an elevated risk of default due to cash burn.

Freedom Broker lowers rating on real estate tech platform reAlpha

Vox Royalty Corp.

Freedom Broker has upgraded its rating on Canada’s Vox Royalty, a small cap whose&nbsp; business model centers around royalty payments from gold miners. Even though Vox’s first-quarter financial results came in below expectations, the company also announced the <a href="https://www.voxroyalty.com/_resources/news/2025/nr-20250515.pdf">acquisition</a> of a royalty in a new asset, which, according to Freedom Broker, should enhance its financial situation. Freedom Broker believes investors now have a “compelling entry point.”

‘A compelling entry point’: Freedom Broker upgrades Vox Royalty 


Sanofi

Eli Lilly and Company

Shares of Vigil Neuroscience, a small drugmaker specializing in rare and common neurodegenerative diseases, <a href="https://finance.yahoo.com/quote/VIGL/">skyrocketed</a> over 240% yesterday, May 22, on <a href="https://investors.vigilneuro.com/news-releases/news-release-details/vigil-neuroscience-enters-definitive-merger-agreement-be">news</a> that pharmagiant Sanofi would acquire the company. This marks Sanofi’s entry into the race to develop an Alzheimer’s treatment, which, <a href="https://oninvest.com/article/pat-small-cap-kompanij-sposobnyh-zarabotat-na-terapii-bolezni-al-cgejmera">according</a> to Bloomberg, might turn into the next obesity market.

Biotech small cap Vigil soars 240% on news of acquisition by pharma giant Sanofi 


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


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


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


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.

Investment ideas