Analysts at Freedom Finance Global have spotlighted four smaller companies that stand to benefit from policies put forward by U.S. President-elect Donald Trump. Three of them operate in the financial sector, while the fourth is a developer and supplier of avionics technology for the civil and military markets.

Freedom spotlights small caps poised to rally on Trump second term

TSS, a small company that provides data center services, might replace the embattled server maker Super Micro Computer as an investor favorite in the AI segment, <a href="https://www.barrons.com/articles/ai-stocks-smci-delisting-dell-tss-f2161b42?utm_source=in_materials">writes</a>. While Supermicro may be <a href="https://kz.kursiv.media/2024-11-06/vlds-supermicro-8/?utm_source=in_materials">delisted</a> soon, TSS has <a href="https://s3.amazonaws.com/b2icontent.irpass.cc/2488/rl140205.pdf?utm_source=in_materials">surged</a> 4,000% this year and has just gained entry to the Nasdaq. cautions, however, that investing in TSS comes with risks.

Surging TSS seen as alternative to Super Micro as new hot AI stock

The portfolio managers of three micro-cap Royce funds have <a href="https://www.royceinvest.com/insights/2024/4Q24/two-high-conviction-micro-cap-holdings?utm_source=in_materials">highlighted</a> two high-conviction small-cap stocks: Transcat, a company specializing in equipment calibration, and Applied Optoelectronics, a provider of optical components. They stand out not only on fundamental metrics but also for features that cannot be quantified, such as customer-centricity and value chain analysis.

Royce spotlights a pair of high-conviction small-cap stocks

Freedom Broker has raised its target price for Viemed Healthcare, a smaller company that provides in-home respiratory support, by more than 18% to $11 per share. The upgrade is attributable to the company’s third-quarter financial results, which beat expectations amid robust demand in the sleep therapy segment. Viemed links this growth to the rising popularity of weight-loss drugs.

Freedom Broker raises Viemed target price amid growing sleep therapy market

The population of the U.S. is aging at an unprecedented rate. By 2035, there will be more people over 65 than children in the U.S., driving healthcare costs up and posing new economic challenges. Both U.S. presidential candidates, Democrat Kamala Harris and Republican Donald Trump, have proposed measures related to these issues. Yet, while an aging population is a challenge for policymakers, it presents a unique opportunity for investors. Here’s how small-cap stocks could help them to profit from this demographic shift.

Eight small-cap stocks that stand to profit from a rapidly aging U.S.

The Motley Fool has <a href="https://www.fool.com/investing/2024/10/29/3-small-cap-stocks-that-could-trounce-the-sp-500-o/?utm_source=in_materials">highlighted</a> three small-cap stocks that could "trounce" the S&amp;P 500 over the next five years. Each of the companies offers major growth potential and could deliver substantial returns. However, the Motley Fool cautions, they may not be suitable for every investor.

Motley Fool highlights three small caps that could ‘trounce’ the S&amp;P 500 on five-year horizon

The Motley Fool has <a href="https://www.fool.com/investing/2024/10/26/2-small-cap-stocks-with-far-more-upside-than-any-m/">highlighted</a> two small-cap stocks, SoundHound AI and Archer Aviation, with "far more" upside than the so-called Magnificent Seven. Over the last five years, these tech giants have <a href="https://www.fool.com/investing/2024/10/26/2-small-cap-stocks-with-far-more-upside-than-any-m/">delivered</a> at least triple-digit returns to investors. However, Wall Street’s current expectations for them are more modest: Of the group, Alphabet has the highest near-term upside at 22%. The Motley Fool argues that SoundHound and Archer could offer far higher returns.

The Motley Fool highlights two small caps with ‘far more’ upside than the Magnificent Seven

Royce Premier Fund, managed by Royce Investment Partners (founded by Wall Street <a href="https://kz.kursiv.media/2024-08-15/mrdr-royce/">legend</a> Chuck Royce), has <a href="https://www.google.com/url?q=https://www.royceinvest.com/insights/2024/4Q24/small-cap-premier-quality-strategy-3q24-update-and-outlook&amp;sa=D&amp;source=docs&amp;ust=1730128633264161&amp;usg=AOvVaw21VWbBlsI9_eSphBEG9sgz">revealed</a> which holdings contributed and detracted the most from the portfolio’s third-quarter performance. The mutual fund invests in small caps with low debt and stable cash flows. Overall, the third quarter, according to co-lead portfolio managers Lauren Romeo and Steven McBoyle, was "somewhat disappointing." In the period, the small-cap-tracking Russell 2000 index gained 9.3%, while Royce Premier Fund added just 5.4%. Despite the underperformance, Romeo and McBoyle are "very pleased" with the fund’s long-term results.

Royce Premier Fund reveals biggest third-quarter contributing and detracting stocks

ImmunityBio, a biotech company developing novel cancer treatments, has been valued at $30 per share in a coverage initiation <a href="https://www.barrons.com/articles/biotech-stock-price-immunitybio-84ca43e9?mod=RTA">report</a> by EF Hutton, an investment bank. Recall that EF Hutton was known as one of the top banks for SPAC deals, including Donald Trump's Trump Media &amp; Technology Group. The bank’s target price for ImmunityBio is more than seven times the October 24 close of $4.20 per share.

EF Hutton sees over 600% upside in biotech small cap ImmunityBio

Morgan Stanley has put together a list of small-cap stocks that, on their numbers, have 50% upside or more, as <a href="https://www.businessinsider.com/stocks-picks-to-buy-huge-upside-small-cap-morgan-stanley-2024-10?IR=T#10-american-airlines-1">reported</a> by Business Insider. Meanwhile, the investment bank forecasts double-digit growth in the small-cap-tracking Russell 2000 index in the coming months.

Morgan Stanley spotlights 10 small-cap stocks with at least 50% upside

"In my entire life, I never dreamed that we would be talking about medicines that are providing hope for people like me who have struggled for years with being overweight or with obesity," famous TV host Oprah Winfrey <a href="https://people.com/celebrities-ozempic-wegovy-what-theyve-said-7104926">told</a> magazine two and a half years after Novo Nordisk's weight-loss drug Wegovy hit the market. Currently, Wegovy and Zepbound, made by U.S.-based Eli Lilly, account for 95% of the obesity market. In the upcoming years, however, they may face over a dozen new competitors. Which companies should investors keep an eye on in the space?

The skinny on investing in the weight-loss drug market

Wall Street offers plenty of small-cap investment ideas, but not all smaller firms are profit-making, and the chances of such investments paying off big or going to zero are about equal, notes market research site Simply Wall St. Georgiy Timoshin, a financial analyst at Freedom Finance Global, highlights two currently-unprofitable small-cap companies that may appeal to investors with a high tolerance for risk.

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