The Motley Fool has spotlighted two reasons to buy shares of EVgo, a smaller company that builds charging stations for electric vehicles (EVs). The U.S. EV market is growing, and even the new administration of President Donald Trump is unlikely to stifle this growth. Moreover, the company holds a competitive advantage: Its stations can charge a vehicle to 80% in less than an hour. However, the Motley Fool cautions investors to be mindful of risks as EVgo remains unprofitable.

The Motley Fool highlights reasons to buy EVgo stock despite Trump's stance on EVs

Shares of Puerto Rican consulting firm Pharma-Bio Serv have the potential to rise 150% from current levels, according to Zacks Small-Cap Research (Zacks SCR). While the company had a bumpy 2024, its management is confident negative trends will reverse in 2025.

Zacks SCR says micro-cap Pharma-Bio Serv has 150% upside

Chip Skinner, who manages the Royce Smaller-Companies Growth Fund, has spotlighted ACV Auctions and Cantaloupe as two "high-confidence" holdings. The fund is part of Royce Investment Partners, founded by <a href="https://kz.kursiv.media/2024-08-15/mrdr-royce/?utm_source=in_materials">Wall Street legend</a> Chuck Royce, and <a href="https://www.royceinvest.com/funds/royce-smaller-companies-growth-fund/rvphx?utm_source=in_materials">invests</a> in companies that, in the words of Skinner, "look poised for multi-year periods of robust growth driven by sustainable competitive advantages and/or that appear to be benefiting from secular growth themes that create favorable conditions for the business."

Royce Growth Fund manager names two 'high-confidence' small-cap holdings

Piper Sandler expects the small- and mid-cap Russell 2000 index to outgain the large-cap S&amp;P 500 in 2025. The investment bank <a href="https://www.cnbc.com/amp/2025/01/28/stock-market-today-live-updates.html?utm_source=in_materials#:~:text=Johnson%20also%20expects%20the%20Russell%202000%20to%20outperform%20the%20500%2Dstock%20S%26P%20this%20year.">believes</a> that stocks of smaller companies offer investors the "most compelling opportunities," as the underlying businesses are bolstered by a robust labor market, rising productivity, and an overall strong U.S. economy.

Piper Sandler expects the Russell 2000 to outperform the S&amp;P 500 in 2025

Quotes on protective apparel manufacturer Lakeland Industries <a href="https://www.marketwatch.com/investing/stock/lake?utm_source=in_materials&amp;utm_source=in_materials">jumped</a> almost 5% yesterday, Tuesday, January 28, after the company <a href="https://feeds.issuerdirect.com/news-release.html?newsid=7727470203767682&amp;utm_source=in_materials">announced</a> a contract with a local government procurement service in the U.S. with more than 9,000 buyers.

Small-cap protective apparel maker Lakeland rises after securing new contract

Goldman Sachs <a href="https://www.cnbc.com/2025/01/28/buy-this-biotech-stock-that-can-rally-more-than-65percent-goldman-says.html?utm_source=in_materials">values</a> the small-cap biotech company Vera Therapeutics at $58.00 per share, more than 60% above the current market price, as Vera’s drug candidate for autoimmune kidney diseases has shown promising results in clinical trials and is likely to hit the market next year.

Goldman Sachs sees over 60% upside in small-cap biotech Vera Therapeutics

Yesterday, Monday, January 27, quotes on the small-cap oil and gas producer Diversified Energy <a href="https://www.marketwatch.com/investing/stock/dec?utm_source=in_materials">rose</a> 4% on the New York Stock Exchange after the company announced it had entered into an agreement to <a href="https://ir.div.energy/news-events/us-press-releases/detail/186/diversified-expands-asset-base-density-and-commodity-mix-with-acquisition-of-liquids-rich-maverick-natural-resources?utm_source=in_materials">acquire</a> peer Maverick Natural Resources for about $1.28 billion. Diversified expects the deal to nearly double its revenue and boost its free cash flow by 55%. Noble Capital Markets <a href="https://www.channelchek.com/news-channel/diversified-expands-portfolio-with-strategic-maverick-natural-resources-acquisition?utm_source=in_materials">believes</a> this could spark further consolidation in the industry.

Small-cap Diversified Energy gains on news of acquisition of peer

Shares of Canadian diamond miner Diamcor Mining have <a href="https://markets.ft.com/data/equities/tearsheet/summary?s=DC3A:FRA&amp;utm_source=in_materials">skyrocketed</a> 300% in Frankfurt today, Tuesday, January 28. Yesterday, Diamcor surged 25% <a href="https://ca.finance.yahoo.com/quote/DMI.V/?utm_source=in_materials">in Toronto</a> and 65% in the U.S. (where it trades <a href="https://finance.yahoo.com/quote/DMIFF/?utm_source=in_materials">over the counter</a>). The driver was news that Diamcor had reached a preliminary <a href="https://www.diamcormining.com/news/diamcor-signs-letter-of-intent-with--dubai-based-company-for-a-usd-50m-term-loan?utm_source=in_materials">agreement</a> with a "well-established Dubai based manufacturer and supplier of bridal and anniversary diamonds to the global market" for a $5 million term loan.

Shares of Tiffany’s diamond supplier Diamcor soaring 300% after new financing

Insider Monkey <a href="https://www.insidermonkey.com/blog/achieve-life-sciences-inc-achv-a-bull-case-theory-1431549/?utm_source=in_materials">believes</a> that now might be the best time to buy shares of smoking cessation therapy maker Achieve Life Sciences, as the stock is trading near one-year lows. That is despite the fact that the company has recently completed clinical trials for its nicotine addiction treatment and may now file for regulatory approval. It could be on its way to capturing a significant share of a $1 billion market.

Insider Monkey makes bull case for Achieve Life Sciences, maker of smoking cessation therapy 

The Motley Fool <a href="https://www.fool.com/investing/2025/01/26/is-this-outer-space-tech-stock-a-buy-for-2025/?utm_source=in_materials">warns</a> investors against rushing into shares of Planet Labs, which has a market capitalization of $1.6 billion on the New York Stock Exchange. While the company’s strong financial performance, combined with voiced interest in space exploration by Donald Trump, has buoyed the stock, the investing advice firm sees it as overvalued at this time.

The Motley Fool says to hold off on buying stock of space data provider Planet Labs

Noble Capital Markets has <a href="https://www.channelchek.com/news-channel/positive-market-sentiment-brings-opportunity-to-small-and-micro-cap-investors?utm_source=in_materials">identified</a> three key factors that should buoy small-cap stocks moving forward. While the broader market reacts to macroeconomic developments like tariffs and trade policy, the small- and micro-cap space stands apart as a unique opportunity for investors, in the investment bank’s view. Recently, the Russell 2000 index, which tracks small- and mid-cap stocks, has given up more than 5% since peaking on November 25, while the S&amp;P 500 reached new highs in January.

Noble Capital Markets says positive market sentiment 'brings opportunity to small-cap investors'

In 2025, makers of drugs for Alzheimer’s disease are poised to see more interest from investors, Bloomberg reports. The number of Alzheimer’s cases is growing worldwide, and more than 160 clinical trials for Alzheimer’s treatments are currently underway. What are the most promising small caps in this niche?

Small caps