Alliance Entertainment Holding Corporation

Investors should take a closer look at Alliance Entertainment Holding, a small-cap distributor of vinyl records and Paramount’s exclusive partner for physical media in North America, says Noble Capital Markets in a recent coverage initiation report. The company is on the verge of significant profitability gains, and its shares remain undervalued, analysts believe.

Noble initiates on Alliance Entertainment with 'buy', 70% upside on margin growth

Anixa Biosciences, Inc.

The fair value of micro-cap biotech Anixa Biosciences, which is developing, among other projects, a cancer vaccine, is almost three times higher than the current share price, Freedom Broker estimates. The firm has initiated coverage of the stock with a "buy" recommendation. Analysts note that Anixa’s early-stage developments have shown encouraging results and that the company has sufficient cash to finance its programs without diluting shareholders in the near term. The broader biotech sector is also showing signs of sustainable growth.

Freedom Broker initiates on biotech Anixa with 'buy' at TP implying 177% upside

Archer Aviation Inc.

Joby Aviation, Inc.

Shares of electric air taxi developers Archer Aviation and Joby Aviation rallied sharply yesterday, October 6, after a series of cryptic posts by EV maker Tesla on X. The posts prompted speculation that Elon Musk’s company could be eyeing the air mobility market.

Shares of air taxi developers soar after Tesla hints at possible eVTOL news

Trilogy Metals Inc.

Lithium Americas Corp.

MP Materials Corp.

Shares of Canadian mining company Trilogy Metals have surged more than 190% in early trading today, October 7. The small-cap miner became the latest beneficiary of the Trump administration’s campaign to secure domestic critical minerals: Washington will invest $35.6 million in the company and receive a 10% equity stake. Similar U.S. government investments in the sector have already triggered rallies in MP Materials and Lithium Americas.

Shares of small-cap Trilogy Metals soar 190% as U.S. takes 10% strategic stake

Ubtech Robotics Corp Ltd

Stereotaxis, Inc.

Rainbow Robotics Co.,Ltd.

The robotics sector is entering a high-growth phase: the global market is expected to <a href="https://www.globenewswire.com/news-release/2025/06/16/3099631/28124/en/Robotics-Market-Industry-Research-Report-2025-North-America-Leading-Robotics-Revolution-Asia-Expected-to-Surge-by-2035.html">expand</a>&nbsp;almost sixfold to $375.7 billion by 2035, for a CAGR of 17.3%. Freedom Capital Markets has <a href="https://en.oninvest.com/article/wellness-robots-biotech-freedom-names-smid-beneficiaries-of-innovation-trends">listed</a>&nbsp;robotics among its top 10 most promising sectors for investors in the coming decade. The main growth driver is the convergence of AI and the Internet of Things, which enables the creation of semi-autonomous systems, boosts efficiency and scalability, and underpins long-term business transformation, the Freedom analysts said in their report.

Smart machines: Which small caps to bet on in the robotics boom

Firefly Aerospace Inc.

Shares of Firefly Aerospace, a mid-cap <a href="https://investors.fireflyspace.com/">developer</a>&nbsp;of launch and orbital vehicles, have&nbsp;<a href="https://finance.yahoo.com/quote/FLY/">jumped </a>nearly 22% in early trading today, October 6, after the company <a href="https://investors.fireflyspace.com/news-releases/news-release-details/firefly-aerospace-announces-strategic-acquisition-scitec-advance">announced</a>&nbsp;its acquisition national security technology developer SciTec to expand its capabilities in the U.S. defense sector. Firefly went public on the Nasdaq in August, and its stock has since lost almost 40% of its value.

Shares of space firm Firefly surge on deal to acquire defense tech SciTec

Quantum Computing Inc.

Shares of Quantum Computing could climb more than 62%, according to a <a href="https://www.barrons.com/articles/quantum-computing-stock-price-buy-3b216737?st=RXfDyV">new forecast</a> by investment bank Ascendiant Capital Markets. The firm nearly doubled its target price, even though the shares have already surged 3,591% over the last 12 months. That is 201 times the return of the S&amp;P 500 over the same period. Analysts say quantum technologies are developing "hand in hand" with ratcheting data generation, which has driven up the demand for high-performance computing.

With Quantum Computing up 3,591% for the year, Ascendiant Capital upgrades TP further

Sirius XM Holdings Inc.

SiriusXM, one of Warren Buffett’s larger portfolio positions at Berkshire Hathaway, has <a href="https://www.fool.com/investing/2025/10/02/warren-buffett-is-one-of-the-worlds-most-successfu/">delivered</a>&nbsp;what the Motley Fool calls “lackluster” returns over the last five years. Analyst David Jagielski argues the company is "a value trap more than a compelling buying opportunity."

Mid cap SiriusXM among Buffett’s weakest performers, notes the Motley Fool

SoundHound AI, Inc.

Investors are overly optimistic about the prospects of voice AI developer SoundHound AI, <a href="https://www.fool.com/investing/2025/10/01/soundhound-ai-stock-jumped-235-in-september/">argues</a>&nbsp;the Motley Fool contributor Anders Bylund. The company’s stock jumped nearly 24% in September, but for “all the wrong reasons,” he wrote, with the rally driven more by social media chatter than by actual company news.

Motley Fool: SoundHound AI stock too rich after meme rally, despite long-term promise

Adient plc

Freedom Broker recommends investors buy shares of small-cap seating manufacturer Adient, which supplies Volkswagen Group, Ford Motor, and Stellantis. Analysts expect the company to increase revenue and profitability through expansion in Asia and to win new orders in the U.S.

Freedom initiates on VW, Ford seat maker Adient with 'buy' and TP implying 35% upside

Lockheed Martin Corporation

Parrot S.A.

Saab AB (publ)

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?

The S&amp;P SmallCap 600 index is projected to rise 17.3% by the end of 2026, outpacing the S&amp;P 500, according to Freedom Broker. Growth catalysts include stabilization in the labor market, lower interest rates, and a limited impact of Trump's tariffs on inflation.

Small caps