In the month following the U.S. presidential election, the S&amp;P SmallCap 600 index <a href="https://finance.yahoo.com/quote/%5ESP600/?utm_source=in_materials">gained</a> 6%. Among the biggest winners were regional bank Dime and car-rental company Hertz, as <a href="https://www.wsj.com/finance/investing/for-small-cap-stocks-look-past-the-trump-trade-cf869302?utm_source=in_materials">reported</a> by the .

WSJ notes biggest gainers in the small-cap S&amp;P 600 since Trump victory

In a recent note, Zacks Small-Cap Research (Zacks SCR) has <a href="https://s27.q4cdn.com/906368049/files/News/2024/Zacks_SCR_Research_11292024_NRXBF_Soresnsen.pdf?utm_source=in_materials">valued</a> Canadian drug developer Nurexone Biologic, which trades in the U.S., at $2.55 per share, more than five times the current share price. In the over-the-counter market on Tuesday, December 3, the stock was <a href="https://www.marketwatch.com/investing/stock/nrxbf?utm_source=in_materials">quoted</a> at $0.50 per share.

Zacks SCR reiterates 400% upside call on Nurexone Biologic for risk-tolerant investors

Zacks has recently <a href="https://finance.yahoo.com/news/small-caps-winners-2024-5-124700447.html?utm_source=in_materials">put out</a> a fresh batch of small-cap recommendations. While the five companies operate in different sectors, they have one thing in common — solid short-term upside, backed up by a favorable Zacks Rank.

Zacks spotlights five small caps with 'solid' short-term upside

Zacks Small-Cap Research (Zacks SCR) sees MediciNova, which develops treatments for amyotrophic lateral sclerosis (ALS) and pulmonary fibrosis, as significantly undervalued. In a recent Zacks SCR note,  the stock's fair value is <a href="https://s27.q4cdn.com/906368049/files/News/2024/Zacks_SCR_Research_11252024_MNOV_Bautz.pdf?utm_source=in_materials">estimated</a> at $10 per share — five times its current price. MediciNova is set to receive compensation from pharmaceutical giant Novartis, which was found to have <a href="https://investors.medicinova.com/news-releases/news-release-details/medicinova-given-notice-monetary-damages-due-under-patent?utm_source=in_materials">infringed</a> on MediciNova patents with its drug Zolgensma, one of the most expensive in the world.

Zacks sees 400% upside for MediciNova amid incoming damages from Sanofi/Novartis dispute

Small-cap stocks typically outperform the broader market from the Tuesday before Thanksgiving until the second trading day of the new year, <a href="https://www.cnbc.com/2024/11/26/small-caps-historically-outperform-even-the-santa-claus-rally-starting-now.html?utm_source=in_materials">points out</a> Jeffrey Hirsch of Stock Trader’s Almanac. Historically, they have delivered stronger returns than their large-cap peers during this period, even with the so-called Santa Claus rally.

Stock Trader’s Almanac sees jollier than usual Santa Claus rally for small caps

The Motley Fool has <a href="https://www.fool.com/investing/2024/11/22/nvidia-71-million-invested-smaller-ai-stocks/?utm_source=in_materials">highlighted</a> two small-cap investments of the world's second-most valuable company, the chipmaker Nvidia. According to Nvidia’s financials, it holds shares of voice assistant developer SoundHound AI and Applied Digital, a builder of data centers. The Motley Fool encourages investors to follow Nvidia’s lead.

The Motley Fool spotlights two small caps whose shares are held by Nvidia

Thomas Yeung, an analyst at InvestorPlace Markets, <a href="https://investorplace.com/2024/11/5-moonshot-stocks-to-buy-for-2025/?utm_source=in_materials">has named</a> three retreating small-cap stocks that he believes are poised for a turnaround in 2025. Two of the companies could benefit from the new administration of President-elect Donald Trump, while the third stands to gain from the trend of automation.

InvestorPlace Markets analyst highlights three small caps poised for a comeback in 2025

Lauren Romeo, a portfolio manager of three Royce funds, has <a href="https://www.royceinvest.com/insights/2024/4Q24/three-high-quality-innovators?utm_source=in_materials">highlighted</a> a trio of innovative smaller companies whose stocks are high-confidence holdings. She points out that technological advances often stem not just from giants like Nvidia and Amazon but also from small-cap companies.

Royce spotlights three small-cap innovators reshaping their industries

Innodata, a small-cap IT solutions provider that uses its large language models (LLMs) to train other companies’ AI, is like "Palantir in its early days," <a href="https://www.zacks.com/commentary/2373029/the-next-big-ai-stock-inod?utm_source=in_materials">according</a> to Zacks. Today, Palantir is a leader in the AI sector with a market capitalization of <a href="https://www.marketwatch.com/investing/stock/pltr?utm_source=in_materials">more than</a> $141.5 billion. Zacks strongly recommends buying Innodata stock, which has soared 3,400% over the last five years.

Zacks spotlights Innodata as 'Palantir in its early days'

Two air taxi stocks — Joby Aviation and Archer Aviation — have jumped after the investment bank Needham initiated coverage of them with "buy" ratings, as <a href="https://www.barrons.com/articles/air-taxi-stocks-joby-archer-af001d89?mod=RTA&amp;utm_source=in_materials">reported</a> by .

Needham initiates coverage on two air taxi stocks with 'buys'

Zacks Small-Cap Research (Zacks SCR) has raised its target price for BioStem Technologies, a developer of perinatal tissue-based therapies, believing the stock should trade at double its current market price. This comes after the company’s third-quarter financial results, which beat Wall Street expectations.

Zacks raises target price for placenta-based drug maker BioStem

In a recent report, Zacks Small-Cap Research (Zacks SCR) has <a href="https://s27.q4cdn.com/906368049/files/News/2024/Zacks_SCR_Research_11112024_ACHV_Vandermosten.pdf?utm_source=in_materials">made the case</a> for its $30 per share target price for Achieve Life Sciences, which is seven times the last closing price. Achieve is a micro-cap company developing the world’s first treatment for vaping addiction.

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